Jones Manufacturing Inc. sponsored a defined benefit pension plan effective 1 January 20X7. The company uses the projected unitcredit actuarial cost method for funding and accounting. Long-term corporate bonds have a yield of 4%. Employees were grantedpartial credit for past service. The past service obligation has been measured at $1,640,000 as of 1 January 20X7. The company willpay $200,000 (for past service) plus all current service cost to the pension plan trustee each 31 December beginning 31 December20X7. This funding arrangement will continue for five years and then be re-evaluated.Data for 20X7 and 20X820X720X8Current service cost$117,000$157,000Actual return on fund assets6,800Decrease in defined benefit obligation at year-end dueto change in assumptionsPayments to pensioners at end of year37,00041,400Required:Prepare a spreadsheet containing all relevant pension information for 20X7 and 20X8. Required:Prepare a spreadsheet containing all relevant pension information for 20X7 and 20X8.Net pensionAsset (Liab)PensionPensionAOCIPlan AssetsExpenseObligation20X7Beginning-PSCCSCNet interestFundingEnding balance20X8CSCNet interestActual return versus expectedRevaluationBenefits paidFundingEnding balance

Defined Pension Plan - In a defined benefit pension plan, an employer/sponsor guarantees a specific…

Jones Manufacturing Inc. sponsored a defined benefit pension plan effective 1 January 20X7. The company uses credit actuarial cost method for funding and accounting. Long-term corporate bonds have a yield of 4%. Employe partial credit for past service. The past service obligation has been measured at $1,640,000 as of 1 January 20X7 pay $200,000 (for past service) plus all current service cost to the pension plan trustee each 31 December begini 20X7. This funding arrangement will continue for five years and then be re-evaluated. Data for 20X7 and 20X8 Current service cost Actual return on fund assets Decrease in defined benefit obligation at year-end due to change in assumptions Payments to pensioners at end of year 20X7 $117,000 20X8 $157,000 6,800 37,000 41,400

Jones Manufacturing Inc. sponsored a defined benefit pension plan effective 1 January 20X7. The company uses credit actuarial cost method for funding and accounting. Long-term corporate bonds have a yield of 4%. Employe partial credit for past service. The past service obligation has been measured at $1,640,000 as of 1 January 20X7 pay $200,000 (for past service) plus all current service cost to the pension plan trustee each 31 December begini 20X7. This funding arrangement will continue for five years and then be re-evaluated. Data for 20X7 and 20X8 Current service cost Actual return on fund assets Decrease in defined benefit obligation at year-end due to change in assumptions Payments to pensioners at end of year 20X7 $117,000 20X8 $157,000 6,800 37,000 41,400

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 6E

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Jones Manufacturing Inc. sponsored a defined benefit pension plan effective 1 January 20X7. The company uses the projected unit credit actuarial cost method for funding and accounting. Long-term corporate bonds have a yield of 3%. Employees were granted partial credit for past service. The past service obligation has been measured at $1,660,000 as of 1 January 20X7. The company will pay $208,000 (for past service) plus all current service cost to the pension plan trustee each 31 December beginning 31 December 20X7. This funding arrangement will continue for five years and then be re-evaluated. Data for 20X7 and 20X8 20X7 20X8 Current service cost $ 121,000 $ 165,000 Actual return on fund assets − 7,200 Decrease in defined benefit obligation at year-end due to change in assumptions − 41,000 Payments to pensioners at end of year − 43,400 Required:Prepare a spreadsheet containing all relevant pension information for 20X7 and 20X8.
Jones Manufacturing Inc. sponsored a defined benefit pension plan effective 1 January 20X7. The company uses the projected unit credit actuarial cost method for funding and accounting. Long-term corporate bonds have a yield of 3%. Employees were granted partial credit for past service. The past service obligation has been measured at $1,660,000 as of 1 January 20X7. The company will pay $208,000 (for past service) plus all current service cost to the pension plan trustee each 31 December beginning 31 December 20X7. This funding arrangement will continue for five years and then be re-evaluated. Data for 20X7 and 20X8 Required: Prepare a spreadsheet containing all relevant pension information for 20X7 and 20X8.
Jones Manufacturing Inc. sponsored a defined benefit pension plan effective 1 January 20X7. The company uses the projected unit credit actuarial cost method for funding and accounting. Long-term corporate bonds have a yield of 4%. Employees were granted partial credit for past service. The past service obligation has been measured at $1,695,000 as of 1 January 20X7. The company will pay $222,000 (for past service) plus all current service cost to the pension plan trustee each 31 December beginning 31 December 20X7. This funding arrangement will continue for five years and then be re-evaluated. Data for 20X7 and 20X8 Current service cost Actual return on fund assets Decrease in defined benefit obligation at year-end due to change in assumptions Payments to pensioners at end of year Required: 20X7 $128,000 $179,000 20X8 7,900 48,000 46,900 Prepare a spreadsheet containing all relevant pension Information for 20X7 and 20X8. Answer is not complete. Net Pension Obligation Plan Assets…
Jones Manufacturing Inc. sponsored a defined benefit pension plan effective 1 January 20X7. The company uses the projected unit credit actuarial cost method for funding and accounting. Long-term corporate bonds have a yield of 4%. Employees were granted partial credit for past service. The past service obligation has been measured at $1,685,000 as of 1 January 20X7. The company will pay $218,000 (for past service) plus all current service cost to the pension plan trustee each 31 December beginning 31 December 20X7. This funding arrangement will continue for five years and then be re-evaluated. Data for 20X7 and 20X8 Current service cost Actual return on fund assets Decrease in defined benefit obligation at year-end due to change in assumptions Payments to pensioners at end of year 20X7 $126,000 20x8 $175,000 7,700 46,000 45,900 Required: Prepare a spreadsheet containing all relevant pension Information for 20X7 and 20X8. Pension Obligation Plan Assets Pension Expense Net pension Asset…
On January 1 of the current reporting year, Coda Company's projected benefit obligation was $3,000,000. During the year, pension benefits paid by the trustee were $400,000. Service cost was $875,000 . Pension plan assets earned $325,000 as expected. At the end of the year, there was no net gain or loss and no prior service cost. The actuary's discount rate was 10%. Determine the amount of the projected benefit obligation at December 31.
Jones Manufacturing Inc. sponsored a defined benefit pension plan effective 1 January 20X7. The company uses the projected unit credit actuarial cost method for funding and accounting. Long-term corporate bonds have a yield of 4%. Employees were granted partial credit for past service. The past service obligation has been measured at $1,655,000 as of 1 January 20X7. The company will pay $206,000 (for past service) plus all current service cost to the pension plan trustee each 31 December beginning 31 December 20X7. This funding arrangement will continue for five years and then be re-evaluated. Data for 20X7 and 20X8 Current service cost Actual return on fund assets Decrease in defined benefit obligation at year-end due to change in assumptions Payments to pensioners at end of year 20X7 $120,000 20X8 $163,000 7,100 40,000 42,900 Required: Prepare a spreadsheet containing all relevant pension information for 20X7 and 20X8.
Strum Corp. has maintained a defined benefit pension plan for its employees for a number of years. For Year 4, current service cost was $37,000 and interest on the projected benefit obligation was $18,000. Strum's return on plan assets, actual and estimated, was S8,000. On December 31, Year 4, Strum Corp. contributed $30,000 to its pension plan. Strum's Year 4 pension expense was: O S63,000 O S47,000 O S55,000 O $30,000
On January 1 of the current reporting year, Coda Company's projected benefit obligation was $29.3 million. During the year, pension benefits paid by the trustee were $3.3 million. Service cost was $9.3 million. Pension plan assets earned $4.3 million as expected. At the end of the year, there was no net gain or loss and no prior service cost. The actuary's discount rate was 10%. Required:Determine the amount of the projected benefit obligation at December 31. (Enter your answers in millions rounded to 2 decimal places. Amounts to be deducted should be indicated with a minus sign.)