Fringe Inc.produces quality leather handbags.The company has only one defined benefit pension plan,which covers its 20 leathersmiths.The company has completed its accounting for the year and has closed its books.The draft financial statements show a defined benefit liability of $5,000,000.This net liability is the result of $30,000,000 of pension assets and $23,000,000 of pension obligations.The remainder was determined to be not recoverable.
During the year,$2,400,000 was paid out to retirees.The pension assets earned $4,700,000 which was $900,000 above expectations.Current service cost was $3,500,000 and interest cost was $1,500,000.The actuaries calculated an actuarial gain of $1,600,000 for the year.
Required:
Prepare the two schedules that would be presented in the notes to reconcile the opening and closing balances of Fringe's pension assets and liabilities.

Question

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The Answer of Fringe Inc.produces quality leather handbags.The company has only one defined benefit pension plan,which covers its 20 leathersmiths.The company has completed its accounting for the year and has closed its books.The draft financial statements show a defined benefit liability of $5,000,000.This net liability is the result of $30,000,000 of pension assets and $23,000,000 of pension obligations.The remainder was determined to be not recoverable.
During the year,$2,400,000 was paid out to retirees.The pension assets earned $4,700,000 which was $900,000 above expectations.Current service cost was $3,500,000 and interest cost was $1,500,000.The actuaries calculated an actuarial gain of $1,600,000 for the year.
Required:
Prepare the two schedules that would be presented in the notes to reconcile the opening and closing balances of Fringe's pension assets and liabilities.