provid the Ollowing data related to Its defined benefit pension plan (amounts in PO00s): a. Accumulated benefit obligation (report of actuary) Beginning balance P3,000 Service cost 1,200 Interest cost 240 Pension benefits paid (400) P4,040 Ending balance Discount rate used by actuary, 8% b. Plan assets at fair value (report of trustee): Beginning balance Actual return on plan asse P2,400 168 Contributions 1,016 Pension benefits paid Ending balance Expected long-term rate of return of plan assets, 7% (400) P3,192 c. January 1, 2022, balance of unrecognized prior service cost, gains and losses, and transaction cost, zero.
provid the Ollowing data related to Its defined benefit pension plan (amounts in PO00s): a. Accumulated benefit obligation (report of actuary) Beginning balance P3,000 Service cost 1,200 Interest cost 240 Pension benefits paid (400) P4,040 Ending balance Discount rate used by actuary, 8% b. Plan assets at fair value (report of trustee): Beginning balance Actual return on plan asse P2,400 168 Contributions 1,016 Pension benefits paid Ending balance Expected long-term rate of return of plan assets, 7% (400) P3,192 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
Related questions
Question
1. Compute 2022 net periodic pension expense.
2. Give the 2022 entries for MPS Company to record pension expense and funding.
3.Compute the under or overfunded ABO at the beginning and end of 2022.
Transcribed Image Text:The 2022 records of MPS Company provided the following data related to its noncontributory,
defined benefit pension plan (amounts in P000s):
a. Accumulated benefit obligation (report of actuary)
Beginning balance
P3,000
Service cost
1,200
Interest cost
240
Pension benefits paid
(400)
P4,040
Ending balance
Discount rate used by actuary, 8%
b. Plan assets at fair value (report of trustee):
Beginning balance
Actual return on plan assets
P2,400
168
Contributions
1,016
Pension benefits paid
Ending balance
Expected long-term rate of return of plan assets, 7%
(400)
P3,192
c. January 1, 2022, balance of unrecognized prior service cost, gains and losses, and transaction
cost, zero.
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3.Compute the under or overfunded ABO at the beginning and end of 2022.
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