1. How much is the defined benefit cost taken to profit or loss for the year 2020?2. How much is the net prepaid/ accrued defined benefit cost that was shown on December 31,2019 statement of financial position? if prepaid --> positive accrued --> negative The memorandum records of ABC Company at January 1,2020 show the following:Defined Benefit ObligationP 2,600,000Fair value of Plan Assets3,000,000The following information for 2020 is also provided:Service costP 800,000Discount rate9%Actual return on plan assetsBenefits paidContributions to the planActuarial loss on remeasurement ofDefined Benefit Obligation300,000350,000780,000100,000

Current Service cost shall increase with the increase in the present value of defined benefit…

1. How much is the defined benefit cost taken to profit or loss for the year 2020? 2. How much is the net prepaid/ accrued defined benefit cost that was shown on December 31,2019 statement of financial position? if prepaid --> positive accrued --> negative

1. How much is the defined benefit cost taken to profit or loss for the year 2020? 2. How much is the net prepaid/ accrued defined benefit cost that was shown on December 31,2019 statement of financial position? if prepaid --> positive accrued --> negative

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter9: Operating Activities

Section: Chapter Questions

Problem 13QE

See similar textbooks

Related questions

Q: Lowe Company has $1620000 of bonds outstanding. The unamortized premium is $21700. If the company re...

A: A bond is a fixed-income product that represents a borrower's debt from a lender (typically corporat...

Q: ecarrying (book) value of a bond at the time when it is issued is always equal to its par valu True ...

A: A bond may be issued at Par, at a premium or at discount. If the coupon rate of bonds is equal to m...

Q: 1. If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhea...

A: Variable cost are the cost which varies with units produced and fixed costs are the cost which do no...

Q: On July 1, 2019, Crane Company purchased new equipment for $80,000. Its estimated useful life was 5 ...

A: Depreciation is an estimation of the cost of physical/tangible assets used during a particular perio...

Q: 26 Present value of decommissioning and restoration costs are capitalized as PPE and with a corresp...

A: PPE means Property, Plant and Equipment being held by the business in the form of fixed assets. Thes...

Q: At the beginning of October, Nelson Inc. detemined the following for a particular product: Standard ...

A: Solution Working note Calculation of the actual quantity of material purchased Favorable Material p...

Q: PART 1 Exclusive Souvenirs Hut does customize, hand-crafted memorabilia for hotels, in which each ba...

A: e) Computation of gross profit earned on jobs after adjusting the manufacturing overhead Sales = $...

Q: 2) You have been the finance director of a Diwan Silks LLC Sohar, for ten years. Its yearend is 31st...

A: Accounting ethics refers to following specific standards and conventions established by governing bo...

Q: Jefferson Inc. has the following information for the month of September. The company applies OH cos ...

A: Solution... Total actual manufacturing overhead costs Variable overhead + fixed overhead = $2,...

Q: latural resources: O Include standing timber, mineral deposits and oil and gas fields O Are also cal...

A: The balance sheet represents the financial position of the business with assets and liabilities on a...

Q: The income statement debit column of the worksheet showed the following expenses: $1,000 Supplies Ex...

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...

Q: Fudction: DATE; Formula: Add, Multiply, Divide; Cell Referencing Using Excel to Compute Interest and...

A: In the context of the given question, we can compute the interest and maturity date using the follow...

Q: The following information relates to Pug Company: Sales revenue Contribution margin Net operating in...

A: As per marginal costing, the change in sales will equal the change in contribution proportionally, f...

Q: Financial information is presented below: Operating expenses $ 29000 Sales returns and 9000 allowanc...

A: Gross profit is calculated by subtracting the cost of goods sold from net sales. Net sales are gross...

Q: A $650000 bond was retired at 102 when the carrying value of the bond was $677000. The entry to reco...

A: Bonds are issued by the company for raising finance. It can be issued at a discount or at a premium.

Q: On June 1,2024, Puritan Performance Cell Phones sold $23,000 of merchandise to Avery Trucking Compa...

A: Direct Write off Method - Under direct write off method uncollectible accounts directly write off as...

Q: Wattan Company reports beginning inventory of 25 units at $39 each. Every week for four weeks it pur...

A: Cost of goods available for sales means costs of those units which can be sold to the outside custom...

Q: On December 31, 2019, Marin Corporation signed a 5-year, non-cancelable lease for a machine. The ter...

A: Lease payment- A lease payment is the correspondent of the monthly rent that is officially dictated ...

Q: Oriole Company had the following two transactions related to its delivery truck. 1. Paid $51 for an ...

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...

Q: Dividends Per Share Oceanic Company has 30,000 shares of cumulative preferred 1% stock, $100 par an...

A: A dividend is a fee paid to stakeholders by a corporation. When a firm makes a profit or has a surpl...

Q: A company issues 9%, 20-year bonds with a par value of $750,000. The current market rate is 9%. The ...

A: Bonds are sources of raising long-term funds by the company. The company pays periodic interest call...

Q: The entry to record transaction costs for financial assets measured at fair value through surplus or...

A: The correct answer for the above mentioned question is given in the following steps.

Q: Accounting Equation The total assets and total liabilities (in millions) of ThriftShop, Inc. and Bul...

A: Lets understand the basics. As per balance sheet equation, total assets are always equal to total eq...

Q: Difference between labour cost,cost of sales and selling price in informal and formal business

A: Merchandising Business- A merchandising business is one that deals with the purchase and sale of com...

Q: You are the external auditor of National Detergent Company SAOG (NDC) is one of the leading manufact...

A: Introduction An Audit opinion is a statement issued by independent auditor after examining the finan...

Q: The accrued obligation at the beginning of the year was S456,000 and the current service cost for th...

A: Formula: Interest amount = Accrued Beginning obligation amount x Interest rate

Q: Oriole Company, a major retailer of bicycles and accessories, operates several stores and is a publi...

A: The cash flow statement is prepared to record the cash flow from various activities during the perio...

Q: P4.3 (LO 2, 3, 4) (Various Income-Related Items) Maher Inc. reported income from continuing operatio...

A: An income statement helps to understand the financial condition of any business.

Q: Crystal has received a special order for 4,000 units of its product. The product normally sells for ...

A: Minimum selling price = incremental revenue/number of units

Q: On which of the following would the year-end Retained Earnings balance be stated correctly?A. Unadju...

A: Retained Earnings (RE) are the accumulated portion of a company's profits that aren't released as di...

Q: At August 1 of the current year, there are 4,000 units at P15 each of merchandise inventory. During ...

A: Weighted Average Cost = Cost of Goods available for sale/ Units available for sale Under periodic in...

Q: Review your notes and compile a list of confidence interval formulas we have learned so far and cond...

A: Confidence intervals are crucial metrics for statistical inference. Statisticians use a confidence i...

Q: May 5-yedr- ol as just inherited a large sum of money. Havi knowledge on investment, she's well awar...

A: In order to calculate the duration of portfolio of bond first we have to calculate Macaulay duration...

Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near ...

A: Solution: Flexible budget is the budget which represents budgeted cost based on actual level of acti...

Q: 15 Factory security and assembly activities at an appliance manufacturing plant would be best classi...

A: Hi student Since there are multiple questions, we will answer only first question.

Q: Company's issued 20,000 share capital receiving land with fair value of P500,000. If the share capit...

A: The shares issued against non cash assets care valued on the basis of fair value of shares or fair v...

Q: The operations vice president of Security Home Bank has been interested in investigating the efficie...

A: Activity-based costing is a method of allocation of indirect costs between/among products or service...

Q: Scenario 5—In 2021, The U.S. government sends $100 of stimulus checks to households, which household...

A: Answer: $50. Explanation: Investment refers to the part of income which is saved for capital formati...

Q: Calculate the Gross Margin of the most recent year. Enter answer as decimal

Q: Accounting Equation The total assets and total liabilities (in millions) of ABC Corporation and XYZ ...

A: Lets understand the basics. As per balance sheet equation, total asset is always equal to equity plu...

Q: The standard price and quantity of fuel are $1.60 per gallon purchased and 1.25 gallons consumed per...

A: Standard costing is acknowledged as a process of recording the costs incurred in the accounting reco...

Q: Hiram's Lakeside is a popular restaurant located on Lake Washington in Seattle. The owner of the res...

A: Activity Rate=Total CostAllocation Base

Q: LIFO periodic inventory system. It had the following transactions Barcal Plates, Inc. (a startup com...

A: Inventory valuation is based on the flow of exemption used by the company. There are many methods fo...

Q: Extracts from CeeCee's accounts: Statement of Comprehensive Income, Statement of Financial Position ...

A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or str...

Q: The following is the trial balance of Tom Holland as at 31 January 2022: Debit Credit RM RM Drawings...

A: Financial statements are the summaries showing assets & liabilities, equities and cash flows, ga...

Q: Steven and Son Inc. sells its car wash package for $180 per unit, its total variable costs per unit ...

A: Margin of safety is the difference between total sales value and breakeven sales value. Here, we can...

Q: Dividends Per Share Oceanic Company has 30,000 shares of cumulative preferred 1% stock, $100 par an...

A: The dividend is considered as a part of the distributable profit distributed by the company to its s...

Q: Allan’s employer purchased a car in March 2019 at a cost of $88,000 GST inclusive and provided the ...

A: Answer:- FBT definition:- FBT is stand for Fringe benefit tax. It was a kind of tax where a company ...

Q: 10..new Comparative balance sheet accounts of Sheridan Inc. are presented below. SHERIDAN INC. ...

A: Cash Flow Statement - Statement of Cash Flow shows the movement of cash flow for the financial year....

Q: For each of the following situations involving single amounts, solve for the unknown. Assume that in...

A: Discounting: It implies to a process of converting the future value of cash flows into present value...

Question

1. How much is the defined benefit cost taken to profit or loss for the year 2020?

2. How much is the net prepaid/ accrued defined benefit cost that was shown on December 31,2019 statement of financial position? if prepaid --> positive accrued --> negative

The memorandum records of ABC Company at January 1,2020 show the following:
Defined Benefit Obligation
P 2,600,000
Fair value of Plan Assets
3,000,000
The following information for 2020 is also provided:
Service cost
P 800,000
Discount rate
9%
Actual return on plan assets
Benefits paid
Contributions to the plan
Actuarial loss on remeasurement of
Defined Benefit Obligation
300,000
350,000
780,000
100,000

Definition Definition Amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

On December 31, 2020, ABC Company had the following balances in its memorandum records related to its defined benefit plan:· Fair value of plan assets- P10,000,000· Benefit obligation- P12,000,000 Other relevant information relating to the plan for 2021 follows:· Current service cost- P2,000,000· Past service cost- P1,300,000· Actual return on plan assets- P1,500,000· Actuarial gain on benefit obligation- P400,000· Actuarial gain on plan assets- P500,000· Present value of benefits settled- P900,000· Settlement price- P800,000· Contribution to the plan- P3,100,000· Discount rate- 12% How much is the employee benefit expense taken to profit or loss during 2021?
On December 31, 2020, GHI Company had the following balances in its memorandum records related to its defined benefit plan:· Fair value of plan assets- P10,000,000· Benefit obligation- P12,000,000 Other relevant information relating to the plan for 2021 follows:· Current service cost- P2,000,000· Past service cost- P1,300,000· Actual return on plan assets- P1,500,000· Actuarial gain on benefit obligation- P400,000· Actuarial gain on plan assets- P500,000· Present value of benefits settled- P900,000· Settlement price- P800,000· Contribution to the plan- P3,100,000· Discount rate- 12% How much is the employee benefit expense taken to profit or loss during 2021?
On December 31, 2020, Detroit Company had the following balances in its memorandum records related to its defined benefit plan: - Fair value of plan assets-P10,000,000 - Benefit obligation- P12,000,000 Other relevant information relating to the plan for 2021 follows: • Current service cost- P2,000,000 • Past service cost- P1,300,000 Actual return on plan assets- P1,500,000 • Actuarial gain on benefit obligation- P400,000 • Actuarial gain on plan assets- P500,000 - Present value of benefits settled- P900,000 • Settlement price-P800,000 . Contribution to the plan- P3,100,000 - Discount rate- 12% How much is the employee benefit expense taken to profit or loss during 2021? A.P3,300,000B.P3,640,000C.P3,540,000D.P3,440,000
On January 1, 2020, FB Company had the following data in connection with its defined benefit plan: Fair value of plan assets- P6,500,000 • Defined benefit obligation- P7,500,000 The accountant revealed the following information for the current year. • Current service costs- P1,600,000 • Discount rate- 10% • Actual return on plan assets-P600,000 . Expected return on plan assets- 8% . Contribution to the plan- P1,500,000 How much is the retirement benefit expense in 2020? A.P1,830,000 B.P1,600,000 C.P2,350,000 D.P1,750,000
The memorandum records ofGalindezTrading at January 1, 2021 show the following data: Define Benefit Obligation 2,600,000 Fair value of plan asset 3,000,000 The following information for 2021 is also provided: Service cost 800,000 Actual return on plan assets 300,000 Benefits paid 350,000 Contributions to the plan 780,000 Actuarial loss on remeasurement of defined benefit obligation 100,000 Discount rate 9% What are the balances of Benefit Obligation and Plan Asset at December 31, 2021? Group of answer choices 3,184,000 3,730,000 3,184,000 3,700,000 3,384,000 3,730,000 3,384,000 3,700,000
The memorandum records of Galindez Trading at January 1, 2021 show the following data: Define Benefit Obligation 2,600,000 Fair value of plan asset 3,000,000 The following information for 2021 is also provided: Service cost 800,000 Actual return on plan assets 300,000 Benefits paid 350,000 Contributions to the plan 780,000 Actuarial loss on remeasurement of defined benefit obligation 100,000 Discount rate 9% How much is the net defined benefit liability/asset that will be shown on December 31, 2021 statement of financial position?
The memorandum records of Galindez Trading at January 1, 2021 show the following data: Define Benefit Obligation 2,600,000 Fair value of plan asset 3,000,000 The following information for 2021 is also provided: Service cost 800,000 Actual return on plan assets 300,000 Benefits paid 350,000 Contributions to the plan 780,000 Actuarial loss on remeasurement of defined benefit obligation 100,000 Discount rate 9% How much is the net prepaid/accrued defined benefit cost that was shown on December 31, 2020 balance sheet?
Hawkins Corporation has the following balances at December 31, 2020. Projected benefit obligation $2,600,000 Plan assets at fair value 2,000,000 Accumulated OCI (PSC) 1,100,000 How should these balances be reported on Hawkins' balance sheet at December 31, 2020?
On January 1, 2021 COMET Company provided the following data in connection with the defined benefit plan: Fair value of plan assets -P6,700,000; Projected benefit obligation -7,600,000. The accountant revealed the following information for the current year: Current service cost -1,750,000; Past service cost -$300,000; Discount rate - 10%; Expected return on plan assets-12%; Actual return on plan assets -P500,000; Contributions to the plan -P2,000,000; Benefit paid to retirees - P1,250,000. What is the employee benefit expense on December 31, 2021?
The following information pertains to Rose Corporation's defined benefit plan for the year 2019: Accrued benefit obligation, January 1, 2019 P5,000,000 Fair value of plan assets, January 1, 2019 3,800,000 Current service cost 600,000 Past service cost, determined at 12/31/19 580,000 Interest rate 12% Actual return on plan assets 550,000 Number of years until vesting of benefits 5 years Contributions made during the year 750,000 Actuarial gain on plan assets ? Actuarial gain on benefit obligation 70,000 What was the balance of the retirement benefit asset/liability at January 1, 2019?
Information about the defined benefit plan of the company is shown belowFair value on plan asset, January 1, 2021 3,000,000Contribution to the fund 1,500,000Return on plan assets 160,000Defined benefit liability. December 31, 2021 410,000Defined benefit obligation, December 31, 2021 4,550,000What is the balance of the fair value on plan asset as of December 31, 2021?
ABC Company had the following balances relating to its defined benefit plan on December 31, 2020: Fair value of plan assets, P37,000,000 Past service cost unrecognized, P2,000,000 Net actuarial loss unrecognized, P3,000,000 Projected benefit obligation, P33,000,000 PV of available future refund and reduction in future contribution, P1,000,000 How much prepaid benefit cost should be shown in the December 31, 2020 statement of financial position? (Round answer to whole number)