2. Give the 2022 entries for MPS Company to record pension expenseand funding.The 2022 records of MPS Company provided the following data related to its noncontributory,defined benefit pension plan (amounts in PO005):a. Accumulated benefit obligation (report of actuary)Beginning balanceP3,0001,200Service costInterest cost240Pension benefits paidEnding balance(400)P4,040Discount rate used by actuary, 8%b. Plan assets at fair value (report of trustee):Beginning balanceActual return on plan assetsContributions400168Pension benefits paidEnding balance1,016(400)P3,192Expected long-term rate of return of plan assets, 7%c. January 1, 2022, balance of unrecognized prior service cost, gains and losses, and transactioncost, zero.

The pension expense is calculated as below:- Particulars Amount Amount Service cost 1200…

2. Give the 2022 entries for MPS Company to record pension expense and funding. The 2022 records of MPS Company provided the following data related to its noncontributory, defined benefit pension plan (amounts in PO005): a. Accumulated benefit obligation (report of actuary) Beginning balance Service cost P3,000 1,200 240 Interest cost Pension benefits paid Ending balance Discount rate used by actuary, 8% b. Plan assets at fair value (report of trustee): Beginning balance Actual return on plan assets (400) P4,040 P2,400 168 Contributions Pension benefits paid Ending balance Expected long-term rate of return of plan assets, 7% 1,016 (400) Р3,192 c. January 1, 2022, balance of unrecognized prior service cost, gains and losses, and transaction cost, zero.

2. Give the 2022 entries for MPS Company to record pension expense and funding. The 2022 records of MPS Company provided the following data related to its noncontributory, defined benefit pension plan (amounts in PO005): a. Accumulated benefit obligation (report of actuary) Beginning balance Service cost P3,000 1,200 240 Interest cost Pension benefits paid Ending balance Discount rate used by actuary, 8% b. Plan assets at fair value (report of trustee): Beginning balance Actual return on plan assets (400) P4,040 P2,400 168 Contributions Pension benefits paid Ending balance Expected long-term rate of return of plan assets, 7% 1,016 (400) Р3,192 c. January 1, 2022, balance of unrecognized prior service cost, gains and losses, and transaction cost, zero.

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 9MC

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Vaughn Enterprises provides the following information relative to its defined benefit pension plan. Balances or Values at December 31, 2020Projected benefit obligation $2,726,600Accumulated benefit obligation 1,982,100Fair value of plan assets 2,293,300Accumulated OCI (PSC) 208,700Accumulated OCI—Net loss (1/1/20 balance, 0) 45,700Pension liability 433,300Other pension plan data for 2020: Service cost $94,700Prior service cost amortization 42,100Actual return on plan assets 129,100Expected return on plan assets 174,800Interest on January 1, 2020, projected benefit obligation 252,800Contributions to plan 93,100Benefits paid 138,800 Collapse question part(a) Prepare the note disclosing the components of pension expense for the year 2020. (Enter amounts that reduce pension expense with either a negative sign preceding the number e.g. -45 or parenthesis e.g. (45).) Components of Pension ExpenseService Cost$94700Interest Cost252800Expected Return on Plan Assets(174800)Prior Service Cost…
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