La, Inc. sponsors a defined-benefit pension plan. The following data relates to the operation of the plan for the year 2016. Service cost P 220,000 Contributions to the plan 200,000 Actual return on plan assets 180,000 Defined benefit obligation (beginning of year) 2,600,000 Fair value of plan assets (beginning of year) 2,400,000

La, Inc. sponsors a defined-benefit pension plan. The following data relates to the operation of the plan for the year 2016. Service cost P 220,000 Contributions to the plan 200,000 Actual return on plan assets 180,000 Defined benefit obligation (beginning of year) 2,600,000 Fair value of plan assets (beginning of year) 2,400,000

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 9MC

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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.
Tesla, Inc. sponsors a defined-benefit pension plan. The following data relates to theoperation of the plan for the year 2021.Service cost $ 545,000Contributions to the plan 330,000Actual return on plan assets 270,000Projected benefit obligation (beginning of year) 3,600,000Fair value of plan assets (beginning of year) 2,400,000The expected return on plan assets and the settlement rate were both 10%. The amountof pension expense reported for 2021 isa. $545,000.b. $635,000.c. $665,000.d. $905,000.
GG Inc. sponsors a defined-benefit pension plan. The following data relates to the operation of the plan for the year 2020. Service cost P200,000 Contributions to the plan 220,000 Actual return on plan assets 180,000 Defined benefit obligation (beginning of year) 2,400,000 Fair value of plan assets (beginning of year) 1,600,000 The discount rate was 10%. The amount of pension expense reported for 2020 is?
TKE Corporation established a defined benefit pension plan in 2016. TKE has provided the following information for the year ended December 31, 20X1: Service cost $ 90,000 Interest cost $ 120,000 Actual return on plan assets $ 70,000 Expected return on plan assets $ 80,000 Amortization of prior service costs $ 30,000 If the company contributes $130,000 cash to the pension plan trustee, which one of the following journal entries properly records the payment? Multiple Choice DR Pension expense 90,000 DR Pension asset (liability) 40,000 CR Cash 130,000 DR Pension expense 120,000 DR Pension asset 10,000 CR Cash 130,000 DR Pension expense 130,000 CR Cash 130,000 DR Pension expense 160,000 CR Cash 130,000 CR Pension asset (liability) 30,000
Sabriina Consultants Inc. has had a defined benefit pension plan since January 1, 2016. The following represents beginning balances as at January 1, 2020: Market value of Plan Asset $1,155,300; Defined Benefit Obligation $1,375,000; AOCI: Loss of $305,000 Additional Information is as follows: Current Service cost is $196,000 for 2020 and $199,000 for 2021. Company Funding/Contribution is $195,000 for 2020 and $205,000 for 2021. Funding is made on December 31 of each year. Actual return on assets is $49,500 for 2020 and $51,500 for 2021. There is an increase in obligation for $26,000 due to changes in Actuarial assumptions at Dec 31, 2020. There are payments made equal to $85,000 per year to retired employees in both 2020 and 2021 (payments to retirees are made at the end of the year on December 31). Past service cost of $65,900 from plan amendment dated December 31, 2021: liability is increased because benefits were increased on a retroactive basis. For 2020, the…
The following information is available for Oriole Corporation’s pension plan for the year 2020: Plan assets, January 1, 2020 $410,000 Actual return on plan assets 17,000 Benefits paid to retirees 40,300 Contributions (funding) 94,100 Discount rate 11% Defined benefit obligation, January 1, 2020, accounting basis valuation 506,000 Service cost 66,300 Calculate pension expense for the year 2020, assuming that Oriole follows ASPE, and its accounting policy is to use an accounting basis valuation for its defined benefit obligation. Pension expense $ Provide the entries to recognize the pension expense and funding for the year. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit December 31, 2020 (To record pension expense.)…
Sophia Consultants Inc. has had a defined benefit pension plan since January 1, 2018.The following represents beginning balances as at January 1, 2022:Plan Asset $1,155,300; Defined Benefit Obligation $1,275,000; Net Pension Liability $119,700Additional Information is as follows for 2022:Current Service cost is $186,000 for 2022Company Funding/Contribution is $200,000 for 2022. Funding is made on December 31 of each year.Actual return on assets is $55,900 for 2022.There is an increase in obligation for $29,000 due to changes in Actuarial assumptions at Dec 31, 2022.There are payments made equal to $80,000 per year to retired employees in 2022 (payments to retireesare made at the end of the year on December 31).Past service cost of $85,900 from plan amendment dated December 31, 2022: liability is increasedbecause benefits were increased on a retroactive basis.For 2022, the assumed interest rate is 6%. Assume IFRS.Required:1. Determine Defined Benefit Obligation, Pension Asset, Pension…
Pharoah Corporation provides the following information about its defined benefit pension plan for the year 2020: Current service cost $225,600 Contribution to the plan 263,100 Past service cost, effective December 31, 2020 25,600 Actual return on plan assets 160,000 Benefits paid 106,000 Net defined benefit liability at January 1, 2020 400,600 Plan assets at January 1, 2020 1,600,000 Defined benefit obligation at January 1, 2020 2,000,600 Interest/discount rate on the DBO and plan assets 10% Pharoah follows IFRS. Prepare a continuity schedule for 2020 for the defined benefit obligation. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Pharoah CorporationContinuity Schedule2020 select an opening name Interest CostDefined Benefit Obligation, 12/31/20Benefits PaidDefined Benefit…
Blossom Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2020 and 2021. 2020 2021 Projected benefit obligation, January 1 $601,000 Plan assets (fair value and market-related value), January 1 413,800 Pension asset/liability, January 1 187,200 Cr. Prior service cost, January 1 161,600 Service cost 40,200 $59,000 Settlement rate 10 % 10 % Expected rate of return 10 % 10 % Actual return on plan assets 35,900 61,200 Amortization of prior service cost 69,800 50,500 Annual contributions 96,700 81,000 Benefits paid retirees 31,400 54,600 Increase in projected benefit obligation due to changes in actuarial assumptions 86,900 0 Accumulated benefit obligation at December 31 716,500 788,800 Average service life of all employees 20 years Vested benefit obligation at December 31 466,800 (a) Prepare a pension worksheet presenting both years 2020 and 2021 and accompanying computationsand amortization of the loss…