B) 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 the pension 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. This difference is to be amortized over a 5 year period, beginning this year. Finally assume the City is amortizing a deferred inflow resulting from a change in plan assumptions from a prior year in the amount of $10,000 per year. Required: Prepare journal entries to record annual pension expense for the enterprise fund.

B) 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 the pension 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. This difference is to be amortized over a 5 year period, beginning this year. Finally assume the City is amortizing a deferred inflow resulting from a change in plan assumptions from a prior year in the amount of $10,000 per year. Required: Prepare journal entries to record annual pension expense for the enterprise fund.

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...

See similar textbooks

Similar questions

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.
) 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 the pension 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. This difference is to be amortized over a 5 year period, beginning this year. Finally assume the City is amortizing a deferred inflow resulting from a change in plan assumptions from a prior year in the amount of $10,000 per year. Prepare journal entries to record annual pension expense for the enterprise fund.
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.
The Corporation has developed the following information (photo attached) for the company's defined benefit pension for 2020: Service cost $1,000,000 Actual return on plan assets 500,000 Annual contribution to the plan 1,840,000 Prior service cost from pension plan amendment in 2019: 2,500,000 Benefits paid to retirees 120,000 Average remaining service life of employees 10 years Interest rate 10% Expected rate of return on plan assets 8% Plan Asset, beginning balance $5,500,000 PBO, beginning balance $8,000,000 The accumulated benefit obligation at December 31, 2020, amounted to $6,500,000. Required: 1. Calculate the ending balance of Plan Asset in 2020 2. Calculate the ending balance of Projected Benefit Obligation in 2020
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.
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
If answered within 30mins,it would be helpful.surely will upvote The Village of Bensonville has a pension trust fund for its public safety employees. For the year ended December 31, 2021, an actuarial consulting firm determined that the Village’s annual general fund contribution to the pension trust fund should be $3,250,000. However, due to a downturn in the local economy, the Village appropriated only $2,750,000 for its 2021 pension contribution to the public safety pension trust fund. From January through November, 2021, the Village contributed $2,460,000 to its public safety pension trust fund. The Village will make its December, 2021, contribution of $200,000 to the pension trust fund during the first week in January, 2022. Based on the information provided, what amount should be reported for expenditures on the statement of revenues, expenditures, and changes in fund balance for the general fund for the year ended December 31, 2021, and what amount should be reported under…
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.
The accountant for Marlin Corporation has developed the following information for the company's defined-benefit pension plan for 2021: Service cost $2,000,000 Actual return on plan assets 1,100,000 Annual contribution to the plan 820,000 Prior service cost from pension plan amendment in 2019: 2,500,000 Benefits paid to retirees 550,000 Average remaining service life of employees 10 years Interest rate 10% Expected rate of return on plan assets 12% Plan Asset, beginning balance $10,000,000 PBO, beginning balance $9,000,000 The accumulated benefit obligation at December 31, 2021, amounted to…
The accountant for Marlin Corporation has developed the following information for the company's defined-benefit pension plan for 2021: Service cost $2,000,000 Actual return on plan assets 1,100,000 Annual contribution to the plan 820,000 Prior service cost from pension plan amendment in 2019: 2,500,000 Benefits paid to retirees 550,000 Average remaining service life of employees 10 years Interest rate 10% Expected rate of return on plan assets 12% Plan Asset, beginning balance $10,000,000 PBO, beginning balance $9,000,000 The accumulated benefit obligation at December 31, 2021, amounted to…
he Corporation has developed the following information (photo attached) for the company's defined benefit pension for 2020: Service cost $1,000,000 Actual return on plan assets 500,000 Annual contribution to the plan 1,840,000 Prior service cost from pension plan amendment in 2019: 2,500,000 Benefits paid to retirees 120,000 Average remaining service life of employees 10 years Interest rate 10% Expected rate of return on plan assets 8% Plan Asset, beginning balance $5,500,000 PBO, beginning balance $8,000,000 The accumulated benefit obligation at December 31, 2020, amounted to $6,500,000. Plan Assets, closing balance: 7,720,000 Planned Benefit obligation, beginning balance: 10,720,000 Required: 1. Calculate the pension expense in 2020 2. What's the ending balance of net gain (loss) - AOCI in 2020 3. What's the ending balance of prior service cost - AOCI in 2020 Clarification question: Is "plan assets, closing balance" the same as "ending balance of plan asset in 2020" & is…
Babcock Company received the following reports of its defined benefit pension plan for the current calendar year: PBO Plan assets Balance, January 1 $ 600,000 Balance, January 1 $ 500,000 Service cost 360,000 Actual return 50,000 Interest cost 64,000 Annual contribution 220,000 Benefits paid (90,000) Benefits paid (90,000) Balance, December 31 $ 934,000 Balance, December 31 $ 680,000 The long-term expected rate of return on plan assets is 8%. Assuming no other data are relevant, what is the pension expense for the year?