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Gurung Co. has a noncontributory, defined benefit pension plan adopted on 1 January 20X5. On 31 December 20X5, the following information is available: For accounting purposes • Interest rate used for pension amounts, 5%. • Past service cost, granted as of 1 January 20X5, $210,000. This is also the defined benefit obligation on 1 January. • Current service cost for 20X5, appropriately measured for accounting purposes, $68,000. For funding purposes • Funding was $100,000 in 20X5 for all pension amounts. The payment was made on 31 December. • Actual earnings on fund assets, zero. Required: 1. Prepare a pension spreadsheet that summarizes relevant pension data for 20X5. 20X5 Beginning-PSC CSC Interest Funding Pension Obligation $ (210,000) (68,000) (10,500) $ (288,500) Answer is complete and correct. Net Pension Asset/Liab. Plan Assets 100,000 $ 100,000 Pension Expense $ 210,000 68,000 10,500 $ 288,500 (288,500) 100,000 $ (188,500) Accumulated ОСI

Gurung Co. has a noncontributory, defined benefit pension plan adopted on 1 January 20X5. On 31 December 20X5, the following information is available: For accounting purposes • Interest rate used for pension amounts, 5%. • Past service cost, granted as of 1 January 20X5, $210,000. This is also the defined benefit obligation on 1 January. • Current service cost for 20X5, appropriately measured for accounting purposes, $68,000. For funding purposes • Funding was $100,000 in 20X5 for all pension amounts. The payment was made on 31 December. • Actual earnings on fund assets, zero. Required: 1. Prepare a pension spreadsheet that summarizes relevant pension data for 20X5. 20X5 Beginning-PSC CSC Interest Funding Pension Obligation $ (210,000) (68,000) (10,500) $ (288,500) Answer is complete and correct. Net Pension Asset/Liab. Plan Assets 100,000 $ 100,000 Pension Expense $ 210,000 68,000 10,500 $ 288,500 (288,500) 100,000 $ (188,500) Accumulated ОСI

Intermediate Accounting: Reporting And Analysis
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 7E
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Gurung Co. has a noncontributory, defined benefit pension plan adopted on 1 January 20X5. On 31 December 20X5, the following information is available: For accounting purposes • Interest rate used for pension amounts, 5%. • Past service cost, granted as of 1 January 20X5, $210,000. This is also the defined benefit obligation on 1 January. • Current service cost for 20X5, appropriately measured for accounting purposes, $68,000. For funding purposes Funding was $100,000 in 20X5 for all pension amounts. The payment was made on 31 December. • Actual earnings on fund assets, zero. . Required: 1. Prepare a pension spreadsheet that summarizes relevant pension data for 20X5. 20X5 Beginning - PSC CSC Interest Funding Pension Obligation $ (210,000) (68,000)✔ (10,500)✓ $ (288,500) Answer is complete and correct. Net Pension Asset/Liab. Plan Assets 100,000 $ 100,000✔ Pension Expense $ 210,000✔ 68,000✔ 10,500✔ 288,500✔ (288,500)✔✔ 100,000✔ $ (188,500)✔ $ Accumulated OCI
Transcribed Image Text:Gurung Co. has a noncontributory, defined benefit pension plan adopted on 1 January 20X5. On 31 December 20X5, the following information is available: For accounting purposes • Interest rate used for pension amounts, 5%. • Past service cost, granted as of 1 January 20X5, $210,000. This is also the defined benefit obligation on 1 January. • Current service cost for 20X5, appropriately measured for accounting purposes, $68,000. For funding purposes Funding was $100,000 in 20X5 for all pension amounts. The payment was made on 31 December. • Actual earnings on fund assets, zero. . Required: 1. Prepare a pension spreadsheet that summarizes relevant pension data for 20X5. 20X5 Beginning - PSC CSC Interest Funding Pension Obligation $ (210,000) (68,000)✔ (10,500)✓ $ (288,500) Answer is complete and correct. Net Pension Asset/Liab. Plan Assets 100,000 $ 100,000✔ Pension Expense $ 210,000✔ 68,000✔ 10,500✔ 288,500✔ (288,500)✔✔ 100,000✔ $ (188,500)✔ $ Accumulated OCI
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