ABC Company's memorandum records for its defined benefit plan show the following balances at December 31, 2019 Fair value of plan assets – P8,000,000 Benefit obligation - P9,000,000 The following have been gathered for the year 2020: Service cost for 2020 P1,000,000 10% Discount rate Actual return on plan assets Benefits paid Contributions made 640,000 600,000 2,000,000 800,000 Past service cost The benefit obligation as measured by the actuary at December 31, 2020 has a present value of P11,050,000. Required: Compute for the following: 1. Retirement benefit expense to be presented in the 2019 profit or loss. 2. Defined benefit liability as of December 31, 2019
Q: The memorandum records of Galindez Trading at January 1, 2021 show the following data: Define…
A: Paytm treatment cost is the gap between the market price of assets held and the defined benefit…
Q: On January 1, 2021, Sandhill Co. has the following balances: Projected benefit obligation $…
A: The projected benefit obligation is referred to as the measurement of the present amount that a…
Q: Fountain Limited sponsors a defined-benefit pension plan for its employees. On January 1,2020 the…
A:
Q: The memorandum records of Galindez Trading at January 1, 2021 show the following data: Define…
A: Given, Defined Benefit Obligation = 2,600,000
Q: On January 1, 2020, McGee Co. had the following balances: Projected benefit obligation…
A: As per IAS 19 "Employee Benefits" Total Expense is equal to: Current Service Cost Add: Past…
Q: The memorandum records of Galindez Trading at January 1, 2021 show the following data: Define…
A: Retirement benefit-cost taken to other comprehensive income for the year 2021 = Change in Return on…
Q: Information about the defined benefit plan of the company are shown below Defined benefit…
A: Settelment cost = Defined benefit obligation, January 1, 2021 x Discount rate = 5,500,000 x 5% =…
Q: On January 1, 2021 COMET Company provided the following data in connection with the defined benefit…
A: Interest costs = Projected benefit obligation x Discount rate = ₱7,600,000 x 10% = ₱760,000
Q: At January 1, 2020, Wembley Company had plan assets of $250,000 and a defined benefit obligation of…
A: Pension plan: Pension plan is the plan devised by corporations to pay the employees an income after…
Q: On December 31, 2020, ABC Company had the following balances in its memorandum records related to…
A: Interest costs = Benefit Obligation, December 31, 2020, x discount rate = P12,000,000 x 12% =…
Q: The memorandum records of Galindez Trading at January 1, 2021 show the following data: Define…
A: Retirement benefits are those benefits which the employee receives after retiring from the…
Q: On January 1, 2021 COMET Company provided the following data in connection with the defined benefit…
A: Interest costs = Projected benefit obligation x Discount rate = ₱7,600,000 x 10% = ₱760,000 Expected…
Q: Wildhorse Company sponsors a defined benefit pension plan. The following information related to the…
A: Pension Expenses: It is an expense that gets a charge from the salary of an employee which will…
Q: On January 1, 2020, McGee Co. had the following balances: Projected benefit obligation…
A: Interest cost on projected benefit obligation = Projected benefit obligation x Settlement rate =…
Q: On January 1, 2019, the memorandum records of ABC Company showed the following balances related to…
A: Defined Benefit Plan:-These are plans which are provided to employees for their benefit based on…
Q: An entity provided the following items related to its defined benefit plan for 2019: January 1…
A: Interest rate = Interest income / Fair value of plan assets at beginning = 160000/1600000 = 10%
Q: TINSEL Company implemented a defined benefit plan on January 1, 2021. The following data are…
A: Pension liability on December 31, 2021 = Projected benefit obligation on December 31, 2021 - Plan…
Q: On January 1, 2020, McGee Co. had the following balances: Projected benefit obligation…
A: Compute the pension expense- Pension expense = Service cost + Interest cost - Expected return on…
Q: Lemke Company sponsors a defined benefit pension plan for its employees. The following data relate…
A: 1.Prepare a pension worksheet presenting both years 2020 and 2021 and accompanying computations and…
Q: On January 1, 2021, Parks Co. has the following balances: Projected benefit obligation $5,600,000…
A: Benefit refers to profit.Obligation is Zn important part of accounting which is also called as…
Q: 10,800 Actual and expected return on plan assets 65,300 Benefits paid 39,700 Plan assets…
A: The pension expense as,
Q: yuletide corporation reported the following data on january 1, 2021: projected benefit obligation…
A: Defined benefit cost for the current year = Current service costs + Interest costs - Actual interest…
Q: The memorandum records ofGalindezTrading at January 1, 2021 show the following data: Define…
A: Plan Asset at December 31, 2021 = Beginning Fair value of plan assets + Actual return on plan assets…
Q: The following information pertains to Havana Corporation's defined benefit penslon plart 2022…
A: Introduction: The process of determining the expenses connected with developing, sustaining, and…
Q: Splish Company sponsors a defined benefit pension plan. The following information related to the…
A: Computation of pension expenses for 2020 and 2021: 2020 2021 Service cost $63,000 $94,500…
Q: An entity provided the following items related to its defined benefit plan for 2019: January 1…
A: According to the accounting standard benefit expenses include the following Current service Cost…
Q: Sheridan Company adopts acceptable accounting for its defined benefit pension plan on January 1,…
A:
Q: Mermade Corp. adopts the IFRS for its defined benefit retirement plan on January 1, 2021, with the…
A: Pension worksheet is a statement showing the breakup of all the sum received by an employee entitled…
Q: Webb Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the…
A: compute pension expense for Webb Corp. for the year 2020 by preparing a pension worksheet:
Q: Blossom Company sponsors a defined benefit pension plan for its employees. The following data relate…
A: Pension worksheet is prepared by the companies for the recording of information related to the…
Q: Oriole Company provides the following information about its defined benefit pension plan for the…
A: Pension expense is the amount of business expense for liability in regard to a pension payable to…
Q: On December 31, 2020, ABC Company had the following balances in its memorandum records related to…
A: Interest costs = Benefit Obligation, December 31, 2020, x discount rate = P12,000,000 x 12% =…
Q: Bridgeport Company provides the following information about its defined benefit pension plan for the…
A: Pension expense is the amount that a business charges to expense in relation to liabilities for…
Q: Wildhorse Company sponsors a defined benefit pension plan. The following information related to the…
A: The process of recording business transactions in the books of accounts for the first time is known…
Q: On December 31, 2020, GHI Company had the following balances in its memorandum records related to…
A: Interest costs = Benefit Obligation, December 31, 2020, x discount rate = P12,000,000 x 12% =…
Q: On January 1, 2021 COMET Company provided the following data in connection with the defined benefit…
A: Interest costs = Projected benefit obligation x Discount rate = ₱7,600,000 x 10% = ₱760,000 Expected…
Q: On January 1, 2020, McGee Co. had the following balances: Projected benefit obligation…
A: The question is based on the concept of Accounting Standard on employee benefits.
Q: nalyzing Changes in Plan Assets and PBO The following information pertains to a company’s defined…
A: A Projected Benefit Obligation (PBO) is one type of measurement about amount that a company will…
Q: On January 1, 2020, McGee Co. had the following balances: Projected benefit obligation…
A: Given : On January 1, 2020, McGee Co. had the following balances : Projected benefit obligation…
Q: Information about the defined benefit plan of the company are shown below: Fair value on plan…
A: Settelment cost (4800000*10%) = Defined benefit obligation, January 1, 2021 x discount rate =…
Q: Sweet Company provides the following information about its defined benefit pension plan for the year…
A: Pension Expenses: When a company provides its employees with a defined benefit pension plan, the…
Q: Sarasota Importers provides the following pension plan information. Fair value of pension plan…
A: Plan assets are the assets/investments held by a long-term employee benefit fund for the purpose of…
Q: You gathered the following information related to Ashley Company's the defined benefit plan for the…
A: step 1: calculation of beginning funded status =beginning plan assets – beginning PBO…
Q: Pharoah Corporation provides the following information about its defined benefit pension plan for…
A: Solution- Pharoah Corporation…
Q: Tesla, Inc. sponsors a defined-benefit pension plan. The following data relates to the operation of…
A: Interest cost = Projected benefit obligation (beginning of year) x settlement rate = $3,600,000 x…
Q: You gathered the following information related to Ashley Company’s the defined benefit plan for the…
A: Defined benefit cost for the year = (Ending Present value of obligation + Benefits paid - Beginning…
Q: Fajardo Company provided the following pension plan information: Projected benefit obligation –…
A: Expected return on plan assets = Fair value of plan asset x Discount rate = 2,800,000 x 10% =…
Q: On January 1, 2021, Dynamax Company had the following balances in its memorandum records: Fair value…
A: SOLUTION- COMPREHENSIVE INCOME INCLUDES REGULAR INCOME AND OTHER COMPREHENSIVE INCOME , WHICH…
Q: he following data: Define Benefit Obligation 2,600,000 Fair value of plan asset 3,000,000 Service…
A: STATEMENT SHOWING CALCULATION OF BENEFIT OBLIGATION AS ON DEC 31, 2021 PARTICULARS AMOUNT PBO…
Step by step
Solved in 2 steps
- In 2019, Magenta Corporation paid compensation of 45,300 to the participants in a profit sharing plan. During 2019, Magenta Corporation contributed 13,200 to the plan. a. Calculate Magentas deductible amount for 2019. b. Calculate the amount of any contribution carryover from 2019.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.P3,440,000Hawkins 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, 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 3,700,000Fed Inc. had the following balances relating to the defined benefit plan on December 31, 2019: Fair value of plan assets 37,000,000 Defined benefit plan 33,000,000 Asset ceiling 2,500,000 What is the prepaid/accrued benefit cost on December 31, 2019? 0 1,500,000 2,500,000 4,000,000 answer not givenThe 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?
- Use the following information for the next five (5) questions: 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% 25) How much is the net prepaid/accrued defined benefit cost that was shown on December 31, 2020 balance sheet? A. 400,000 prepaid B. 400,000 accrued C. 346,000 prepaid D. 346,000 accrued 26) How much is the retirement benefit expense taken to profit or loss for the year 2021? A. 836,000 B. 834,000 C. 764,000 D. 694,000 27) How much is the retirement benefit cost that is taken to other comprehensive income for the year 2021? A. 130,000 gain B. 130,000 loss C. 70,000 gain D. 70,000 loss 28) What are the balances of…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 following date relate to the defined benefit plan of ABC Company for the year ended December 31, 2020:· Present value of benefit obligation, January 1, 2020- P15,000,000· Fair Value of plan asset, January 2, 2020- P14,000,000· Contribution during the year- P1,050,000· Current service cost- P800,000· Benefits paid during the year- P1,500,000· Present value of benefit obligation, December 31, 2020- P17,000,000· Fair value of plan asset, December 31, 2020- P14,920,000· Discount rate- 6%· Expected rate of return- 7%What amount of net remeasurement gain and loss should be reported in the other comprehensive income?