6. On January 1, a pension fund has a balance of $X. A contribution of $200,000 is paid into the fund on a date prior to June 30. Immediately before the contribution, the balance in the fund is $1,375,000. The balance on June 30 is $1,732,500. On July 1, benefit payments of $125,000 are paid from the fund. The balance on December 31 is $1,607,500. The time weighted and dollar weighted yield rates on the fund are both equal to 21%. Determine the month in which the contribution was made.

6. On January 1, a pension fund has a balance of $X. A contribution of $200,000 is paid into the fund on a date prior to June 30. Immediately before the contribution, the balance in the fund is $1,375,000. The balance on June 30 is $1,732,500. On July 1, benefit payments of $125,000 are paid from the fund. The balance on December 31 is $1,607,500. The time weighted and dollar weighted yield rates on the fund are both equal to 21%. Determine the month in which the contribution was made.

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 7RE

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A government makes a contribution to its pension plan in the amount of $10,000 for year 1. The actuarially-determined annual required contribution for year 1 was $13,500. The pension plan paid benefits of $8,200 and refunded employee contributions of $800 for year 1. What is the pension expenditure for the general fund for year 1? A.) $8,200 B.) $9,000 C.) $10,000 D.) $13,500
The Marino Company has provided you the following information pertaining to its defined benefit pension plan that was adopted on January 1, 20X1: The service cost was $950,000 during 20X1 and $1,045,000 during 20X2. The prior service cost amortization each year was $290,000. The contribution to the pension plan was $1,500,000 on December 31, 20X1 and $1,800,000 on December 31, 20X2. The actuarially determined discount rate and the expected return on plan assets was 10%. The actual return on plan assets was 9.5%. Retirement benefits pertaining to years of service prior to 20X1 were granted to the employees. The prior service cost is being amortized over the remaining ten-year life of the employees. What is the pension expense for the year ended December 31, 20X2? Multiple Choice $1,335,000 $1,280,000 $1,185,000 $1,599,000
The Carrasco Company has provided you the following information pertaining to its defined benefit pension plan that was adopted on January 1, 20X1: The service cost was $750,000 during 20X1 and $1,125,000 during 20X2. The contribution to the pension plan was $600,000 on December 31, 20X1 and $1,200,000 on December 31, 20X2. The actuarially determined discount rate and the expected return on plan assets are both 10%. The actual return on plan assets was 10.5%. Retirement benefits pertaining to years of service prior to 20X1 were not granted to the employees. What is the pension expense for the year ended December 31, 20X2? Multiple Choice $1,140,000 $1,065,000 $1,200,000 $1,137,000
3 Amherst City provides a defined benefit pension plan for employees of the city electric utility, an enterprise fund. Assume that the projected level of earnings on plan investments is $184,300, the service cost component is $272,500, and interest on the pension liability is $160,000 for the year. The City is amortizing a deferred outflow resulting from a change in plan assumptions from a prior year in the amount of $5,900 per year. Requried: Prepare journal entries to record annual pension expenses for the enterprise fund. Note: If no entry is required for a transaction or event, select "No Journal Entry Required" in the first account field.
2. Big City provides a defined benefit pension plan for employees of the city water department,an enterprise fund. Assume that the service cost component is $420,000, and interest on thepension liability is $380,000 for the year. Actual returns on plan assets for the year were$300,000 while the projected level of earnings on plan investments was $360,000. Thisdifference is to be amortized over a 5 year period, beginning this year. Finally assume theCity is amortizing a deferred inflow resulting from a change in plan assumptions from a prioryear in the amount of $10,000 per year. Required: Prepare journal entries to record annual pension expense for the enterprise fund.
6) The following facts apply to the pension plan of Trudy Borke Inc. for the year 20X1: Plan assets, January 1 20X1 $490,000Projected benefit obligation January 1 20X1 490,000Settlement rate 8.5%Annual pension service cost 40,000Contributions (funding) 30,000Actual return on plan assets 49,700Benefits paid to retirees 33,400 What is the pension expense for 20X1?
The following facts apply to the pension plan of Trudy Borke Inc. for the year 20X1: Plan assets, January 1 20X1 $490,000 Projected benefit obligation January 1 20X1 490,000 Settlement rate 8.5% Annual pension service cost 40,000 Contributions (funding) 30,000 Actual return on plan assets 49,700 Benefits paid to retirees 33,400 What is the pension expense for 20X1? items Annual Pension expense cash Pension asset/liability Projected Benefit Obligation Plan Assets Balance, January 1, 20X1 $490,000 Cr. $490,000 Dr. service cost $40,000 Dr. $40,000 Cr. interest cost $49,700 Dr. $49,700 Cr. actual return $49,700 Cr. $49,700 Dr. contributions $30,000 Cr. $30,000 Dr. Benefits $33,400 Dr. $33,400 Cr. journal entry for 20X1 $40,000 $30,000 Cr. $10,000 Cr. Balance 20X1 $10,000 Cr. $546,300 Cr. $536,300 Dr.
You gathered the following information related to Ashley Company’s the defined benefit plan for the current year ended December 31: Fair value of plan assets: P2,100 million at January 1, and P2,300 million at December 31 Present value of obligation to provide benefits: P2,200 million at January 1, and P2,600 million at December 31 Contributions paid to the fund: P80 million Benefits paid to retired employees: P50 million The defined benefit cost for the year is A P250 million B P280 million C P200 million D P120 million
4 You gathered the following information related to Ashley Company’s the defined benefit plan for the current year ended December 31: Fair value of plan assets: P2,100 million at January 1, and P2,300 million at December 31 Present value of obligation to provide benefits: P2,200 million at January 1, and P2,600 million at December 31 Contributions paid to the fund: P80 million Benefits paid to retired employees: P50 million The defined benefit cost for the year is Group of answer choices P200 million P250 million P280 million P120 million
During the fiscal year ended December 31, 2013, Glen City’s general fund contributed $60 million to a defined benefit pension plan for city employees. The actuarially determined contribution requirement for 2013 is $65 million. The amount of pension expenditure recognized by the general fund for 2013 should be: A.) $ 0 B.) $ 60 million C.) $ 63 million D.) $ 65 million
Burrito Corporation has a defined benefit pension plan. Burrito received the following information for the current calendar year: Projected benefit obligation Balance, January 1 $ 150,000,000 Service cost 25,000,000 Interest cost 15,000,000 Benefits paid (12,000,000 ) Balance, December 31 $ 178,000,000 Plan assets Balance, January 1 $ 90,000,000 Actual return on plan assets 11,000,000 Contribution 23,000,000 Benefits paid (12,000,000 ) Balance, December 31 $ 112,000,000 The expected long-term return on plan assets is 10%. There were no other relevant data for the year. Required:1. Prepare the journal entries to record the pension expense and funding for the year.
Lewis Industries adopted a defined benefit pension plan on January 1, 2018. By making the provisions of theplan retroactive to prior years, Lewis incurred a prior service cost of $2 million. The prior service cost wasfunded immediately by a $2 million cash payment to the fund trustee on January 2, 2018. However, the cost isto be amortized (expensed) over 10 years. The service cost—$250,000 for 2018—is fully funded at the end ofeach year. Both the actuary’s discount rate and the expected rate of return on plan assets were 9%. The actualrate of return on plan assets was 11%. At December 31, the trustee paid $16,000 to an employee who retiredduring 2018.Required:Determine each of the following amounts as of December 31, 2018, the fiscal year-end for Lewis:1. Projected benefit obligation2. Plan assets3. Pension expense