The basic financial statements of a pension plan provide only limited amounts of information as to its economic condition.
The following information relates to the Lincoln County Firefighters' Pension Plan (dollar amounts in millions):
Beginning-of-Year Balances
Cash and cash equivalents, January 1 $ 67
Marketable securities and other investments at fair value, January 1 $3,180
Current liabilities to retirees, January 1 $ 4
Actuarial accrued liability, January 1 $3,430
Transactions During the Year
Contributions received during the year from employers and employees $ 138
Benefits to which retirees were entitled during the year $ 120
Benefits actually paid to retirees, including amounts owed from prior year $ 122
Interest and dividends earned during the year $ 145
Net appreciation in fair value of marketable securities and other investments (i.e., realized and unrealized gains) during the year $ 36
Investment and administrative expenses $ 45
End-of-Year Balances
Cash on hand, December 31 $ 92
Marketable securities and other investments at fair value, December 31 $3,307
Current liabilities to retirees, December 31 $ 2
Actuarial accrued liability, December 31 $3,690
1. Prepare a statement of plan net assets available for benefits (balance sheet) as of January 1. You may not have to include all of the data provided.
2. Prepare a statement of changes in plan net assets available for benefits (statement of activities) for the year.
3. Prepare a statement of plan net assets available for benefits (balance sheet) as of December 31.