A company's defined benefit pension plan had a projected benefit obligation (PBO) of $350,000 on January 1, Year 1. During Year 1, pension benefits paid were $60,000, The discount rate for the plan for Year 1 was 11%. Service cost for the year was $90,000. Plan assets (fair value) increased during the year by $50,000. What was the PBO at December 31, Year 1? A. $290,000 B. $418,500 C. $380,000 D. $368,500

A company's defined benefit pension plan had a projected benefit obligation (PBO) of $350,000 on January 1, Year 1. During Year 1, pension benefits paid were $60,000, The discount rate for the plan for Year 1 was 11%. Service cost for the year was $90,000. Plan assets (fair value) increased during the year by $50,000. What was the PBO at December 31, Year 1? A. $290,000 B. $418,500 C. $380,000 D. $368,500

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 3RE: Pinecone Company has plan assets of 500,000 at the beginning of the current year and expects to earn...

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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.
5. 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 P250 million P280 million P200 million P120 million
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
A corporation provides a defined benefit pension plan to its employees; the settlement rate is 8% the expected return on plan assets is 8%, during the year, the service cost was sh. 50,000; during year 2 service cost was sh.60, 000 contributions to the pension trust were sh. 70,000, the actual return on plan assets was sh.4, 000 and benefits of shs. 3,000 were paid to retirees; during year 3 service cost was sh.75, 000 contributions to the pension trust were sh. 55,000, the actual return on plan assets was sh. 9,680 and benefits of sh. 5, 80 were paid to retirees; during year 4 service cost was sh. 80,000 contributions to the pension trust were sh. 65,000, the actual return on plan assets was sh.14, 400 and benefits of sh. 9,400 were paid to retirees. Required: Make journal entries from the question. Create the ledger accounts for the information above.
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?
Horizon Inc. has a defined benefit pension plan. The following pension-related data were available for the current calendar year: PBO: Balance, Jan. 1 $ 235,000 Service cost 36,000 Interest cost (5% discount rate) 11,750 Gain from changes in actuarial assumptions in 2021 (4,500 )Benefits paid to retirees (15,000 )Balance, Dec. 31 $ 263,250 Plan assets: Balance, Jan.1 $ 245,000 Actual return (expected return was $22,000) 20,000 Contributions 30,000 Benefits paid (15,000 )Balance, Dec. 31 $ 280,000 ABO, Dec. 31 $ 239,500 January 1, 2021, balances: Prior service cost–AOCI (amortization $5,075/yr.) 5,075 Net gain–AOCI (amortization, if any, over 15 years) 50,750 There were no other relevant data. Required:1. Calculate the 2021 pension expense.2. Prepare the 2021 journal entries to record pension expense and funding.3. Prepare any journal entries to record any 2021 gains or losses.
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Pension data for the Broncos Company include the following for the current calendar year:Discount rate, 8%Expected return on plan assets, 10%Actual return on plan assets, 9%Service cost, $200,000January 1:PBO $1,400,000ABO 1,000,000Plan assets 1,500,000Amortization of prior service cost 20,000Amortization of net gain 4,000December 31:Cash contributions to pension fund $220,000Benefit payments to retirees 240,000Required:1) Determine pension expense for the year. Show your calculation. If not, no credit.2) Prepare the journal entries to record pension expense and funding for the year. 3) Compute the ending balance of PBO (balance on 12/31).
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