Flounder Company sponsors a defined benefit plan for its 100 employees. On January 1, 2020, the company's actuary provided the following information. Accumulated other comprehensive loss (PSC) $149,300 Pension plan assets (fair value and market-related asset value) 197,200 Accumulated benefit obligation 255,900 Projected benefit obligation 387,500 The average remaining service period for the participating employees is 10 years. All employees are expected to receive benefits under the plan. On December 31, 2020, the actuary calculated that the present value of future benefits earned for employee services rendered in the current year amounted to $51,000; the projected benefit obligation was $487,000; fair value of pension assets was $279,200; the accumulated benefit obligation amounted to $360,700. The expected return on plan assets and the discount rate on the projected benefit obligation were both 10%. The actual return on plan assets is $11,400. The company's current year's contribution to the pension plan amounted to $70,600. No benefits were paid during the year.
Flounder Company sponsors a defined benefit plan for its 100 employees. On January 1, 2020, the company's actuary provided the following information. Accumulated other comprehensive loss (PSC) $149,300 Pension plan assets (fair value and market-related asset value) 197,200 Accumulated benefit obligation 255,900 Projected benefit obligation 387,500 The average remaining service period for the participating employees is 10 years. All employees are expected to receive benefits under the plan. On December 31, 2020, the actuary calculated that the present value of future benefits earned for employee services rendered in the current year amounted to $51,000; the projected benefit obligation was $487,000; fair value of pension assets was $279,200; the accumulated benefit obligation amounted to $360,700. The expected return on plan assets and the discount rate on the projected benefit obligation were both 10%. The actual return on plan assets is $11,400. The company's current year's contribution to the pension plan amounted to $70,600. No benefits were paid during the year.
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 6RE
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Transcribed Image Text:Flounder Company sponsors a defined benefit plan for its 100 employees. On January 1, 2020, the company's actuary provided the
following information.
Accumulated other comprehensive loss (PSC)
$149,300
Pension plan assets (fair value and market-related asset value)
197,200
Accumulated benefit obligation
255,900
Projected benefit obligation
387,500
The average remaining service period for the participating employees is 10 years. All employees are expected to receive benefits
under the plan. On December 31, 2020, the actuary calculated that the present value of future benefits earned for employee services
rendered in the current year amounted to $51,000; the projected benefit obligation was $487,000; fair value of pension assets was
$279,200; the accumulated benefit obligation amounted to $360,700. The expected return on plan assets and the discount rate on the
projected benefit obligation were both 10%. The actual return on plan assets is $11,400. The company's current year's contribution to
the pension plan amounted to $70,600. No benefits were paid during the year.
Transcribed Image Text:Your answer is partially correct.
Indicate the pension amounts reported in the financial statement as of December 31, 2020. (Enter negative amounts using either a
negative sign preceding the number e.g. -15,630 or parentheses e.g. (15,630).)
Flounder Company
Income Statement (Partial)
For the Year Ended December 31, 2020
Operating Expenses
Pension Expense
84,960
Other Income / Expenses
Pension Expense
17,500
Flounder Company
Balance Sheet (Partial)
December 31, 2020
Liabilities
Pension Asset/Liability
207,800
Stockholders' Equity
Accumulated Other Comprehensive Income (PSC) V
134,370
Accumulated Other Comprehensive Loss
18,070
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