Answered: The Corporation has developed the…

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 1E

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Pinecone Company has plan assets of 500,000 at the beginning of the current year and expects to earn 12% on its plan assets during the year. Pinecones service cost is 230,000, and its interest cost is 55,000. Compute Pine-cones pension expense for the current year.
he Corporation has developed the following information (photo attached) for the company's defined benefit pension for 2020: Service cost $1,000,000 Actual return on plan assets 500,000 Annual contribution to the plan 1,840,000 Prior service cost from pension plan amendment in 2019: 2,500,000 Benefits paid to retirees 120,000 Average remaining service life of employees 10 years Interest rate 10% Expected rate of return on plan assets 8% Plan Asset, beginning balance $5,500,000 PBO, beginning balance $8,000,000 The accumulated benefit obligation at December 31, 2020, amounted to $6,500,000. Plan Assets, closing balance: 7,720,000 Planned Benefit obligation, beginning balance: 10,720,000 Required: 1. Calculate the pension expense in 2020 2. What's the ending balance of net gain (loss) - AOCI in 2020 3. What's the ending balance of prior service cost - AOCI in 2020 Clarification question: Is "plan assets, closing balance" the same as "ending balance of plan asset in 2020" & is…
The accountant for Marlin Corporation has developed the following information for the company's defined-benefit pension plan for 2021: Service cost $2,000,000 Actual return on plan assets 1,100,000 Annual contribution to the plan 820,000 Prior service cost from pension plan amendment in 2019: 2,500,000 Benefits paid to retirees 550,000 Average remaining service life of employees 10 years Interest rate 10% Expected rate of return on plan assets 12% Plan Asset, beginning balance $10,000,000 PBO, beginning balance $9,000,000 The accumulated benefit obligation at December 31, 2021, amounted to…
The accountant for Marlin Corporation has developed the following information for the company's defined-benefit pension plan for 2021: Service cost $2,000,000 Actual return on plan assets 1,100,000 Annual contribution to the plan 820,000 Prior service cost from pension plan amendment in 2019: 2,500,000 Benefits paid to retirees 550,000 Average remaining service life of employees 10 years Interest rate 10% Expected rate of return on plan assets 12% Plan Asset, beginning balance $10,000,000 PBO, beginning balance $9,000,000 The accumulated benefit obligation at December 31, 2021, amounted to…
The following information is available for Oriole Corporation’s pension plan for the year 2020: Plan assets, January 1, 2020 $410,000 Actual return on plan assets 17,000 Benefits paid to retirees 40,300 Contributions (funding) 94,100 Discount rate 11% Defined benefit obligation, January 1, 2020, accounting basis valuation 506,000 Service cost 66,300 Calculate pension expense for the year 2020, assuming that Oriole follows ASPE, and its accounting policy is to use an accounting basis valuation for its defined benefit obligation. Pension expense $ Provide the entries to recognize the pension expense and funding for the year. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit December 31, 2020 (To record pension expense.)…
The following information pertains to a defined benefit pension plan that Arora Inc. sponsors in 2020. PBO balance, January 1, 2020 $160,000 Service cost 19,000 Interest cost 11,200 Prior service cost adjustment based on past service, January 1, 2020 30,000 Amortization of prior service cost 3,000 Actuarial gain on PBO 6,000 Benefits paid to retirees 2,500 Contributions to plan 18,000 What is the PBO balance on December 31, 2020? Select one: a. $228,700 b. $216,700 c. $211,700 d. $193,700
Solomon, Inc. sponsors a defined benefit pension plan for its employees. On January 2020, the following balances and additional information related to this plan are: Plan assets, January 1, 2020 $170,000 Projected Benefit Obligation, January 1, 2020 260,000 Prior Service Cost, January 1, 2020 100,000 OCI-Loss, January 1, 2020 42,000 Service Cost for 2020 45,000 Actual return on plan assets 25,000 Amortization of PSC 15,000 Contributions in 2020 85,000 Benefits paid in 2020 51,000 Settlement rate 8% Expected return on assets 28,000 Average remaining service of life of active employees 10 years A. Prepare a pension worksheet using Excel B. Prepare the year journal entry to record the pension expense
Sandhill Company provides the following information about its defined benefit pension plan for the year 2025. Service cost Contribution to the plan $91,600 104,400 Prior service cost amortization 10,800 Actual and expected return on plan assets 64,600 Benefits paid 40,300 Plan assets at January 1, 2025 650,000 Projected benefit obligation at January 1, 2025 692,000 Accumulated OCI (PSC) at January 1, 2025 150,000 Interest/discount (settlement) rate 11% (a) Prepare a pension worksheet inserting January 1, 2025, balances, showing December 31, 2025. (Enter all amounts as positive.
The following information is available for the pension plan of Wildhorse Company for the year 2020. Actual and expected return on plan assets $ 15,800 Benefits paid to retirees 39,500 Contributions (funding) 88,700 Interest/discount rate 11 % Prior service cost amortization 7,600 Projected benefit obligation, January 1, 2020 548,000 Service cost 60,000 (a) Correct answer icon Your answer is correct. Compute pension expense for the year 2020. Pension expense for 2020 $enter pension expense for 2017 in dollars eTextbook and Media List of Accounts Attempts: 1 of 3 used (b) Prepare the journal entry to record pension expense and the employer’s contribution to the pension plan in 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account…
) M Service Co. reported the following for its defined-benefit pension plan for 2020: Service cost $600,000 Actual return on plan assets 460,000 Benefits paid to retirees 418,000 Cash contributions made by M to the pension plan 100,000 Settlement rate 4% Expected rate of return on plan assets 7% Average…
The accountant for Bramble Corporation has developed the following information for the company's defined-benefit pension plan for 2026: Service cost Actual return on plan assets $570,000 278,000 Annual contribution to the plan 948,000 Amortization of prior service cost 127,800 Benefits paid to retirees 74,000 Settlement rate 10% Expected rate of return on plan assets 8% The accumulated benefit obligation at December 31, 2026, amounted to $3,390,000. (a) Using the above information for Bramble Corporation, complete the pension worksheet for 2026.
The following facts apply to the pension plan of Wildhorse Inc. for the year 2020. Plan assets, January 1, 2020 $470,900 Projected benefit obligation, January 1, 2020 470,900 Settlement rate 8 % Service cost 38,500 Contributions (funding) 24,300 Actual and expected return on plan assets 46,800 Benefits paid to retirees 34,700 Using the preceding data, compute pension expense for the year 2020. As part of your solution, prepare a pension worksheet that shows the journal entry for pension expense for 2020 and the year-end balances in the related pension accounts. (Enter all amounts as positive.) WILDHORSE INC.Pension Worksheet—2020 General Journal Entries Memo Record Items Annual PensionExpense Cash Pension Asset/Liability Projected BenefitObligation PlanAssets Balance, January 1, 2020 $enter a net debit or credit balance select between debit and credit $enter a net debit or…

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