Metlock Company has five employees participating in its defined benefit pension plan. Expected years of future service for these employees at the beginning of 2020 are as follows. Employee Future Years of Service Jim 3 Paul 4 Nancy 5 Dave 6 Kathy 6 On January 1, 2020, the company amended its pension plan, increasing its projected benefit obligation by $ 84,960. Compute the amount of prior service cost amortization for the years 2020 through 2025 using the years-of-service method, setting up appropriate schedules.

Metlock Company has five employees participating in its defined benefit pension plan. Expected years of future service for these employees at the beginning of 2020 are as follows. Employee Future Years of Service Jim 3 Paul 4 Nancy 5 Dave 6 Kathy 6 On January 1, 2020, the company amended its pension plan, increasing its projected benefit obligation by $ 84,960. Compute the amount of prior service cost amortization for the years 2020 through 2025 using the years-of-service method, setting up appropriate schedules.

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

See similar textbooks

Related questions

Q: At January 1, 2020, Van Gogh Corp.'s defined benefit pension plan, under IFRS, had a defined benefit…

A: According to the given question, we are required to compute the Defined benefit obligations on…

Q: Marigold Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2021, the…

A: Income Statement- An income statement is one of the three major fiscal statements used for dealing a…

Q: Frazier Refrigeration amended its defined benefit pension plan on December 31, 2021, to increase…

Q: On January 1, 2019, Solano Incorporated amended its pension plan which caused an increase of…

A: Cost per service year = Prior costs / Number of employees worked during every year = $6,000,000 /…

Q: Prepare the journal entry to record the pension expense and the company's funding of the pension…

Q: On January 1, 2019, James Company adopted a defined benefit pension plan. At that time, James…

A: 1. Compute the amount of James' pension expense for 2019 and 2020. Formulas for the above table:

Q: The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal…

A: Pension expense is an employer's annual cost for maintaining an employee's pension plan. To…

Q: A partially completed pension spreadsheet showing the relationships among the elements that comprise…

A: SOLUTION PENSION IS A RETIREMENT PLAN THAT PROVIDES A MONTHLY INCOME IN RETIREMENT.

Q: King, Inc. started a pension plan on January 1, 2019. At that date, prior service cost of $1,100,000…

A: Pension expense refers to the cost that a business incurs concerning the liability that shall be…

Q: Henning Company sponsors a defined benefit pension plan for its employees. The following data relate…

A: Pension: A fixed sum of money, receivable in future or after the age of retirement, which the…

Q: On January 1, 2019, Smith Company adopted a defined benefit pension plan. At that time, Smith…

A: A program may be a pension account that needs an associate degree leader to form contributions to a…

Q: On January 1, 2016, Baznik Company adopted a defined benefit pension plan. At that time, Baznik…

A: All amount are in dollar ($).

Q: Oriole Company has five employees participating in its defined benefit pension plan. Expected years…

A: Lets understand the basics. In years of service method, amortization is made on the basis of total…

Q: On January 1, 2019, Smith Company adopted a defined benefit pension plan. At that time, Smith…

A: Interest cost = Discount rate × Projected benefit obligation=10% × $1,250,000=$125,000…

Q: Carla Vista Company has a defined-benefit plan. At the end of 2021, it has determined the following…

A: Amount of pension liability = Projected benefit obligation- Fair value of pension plan assets

Q: Company G offers a defined benefit pension plan to its employees. At December 31, 2018, the present…

A: Given: Benefit obligation of the pension plan = $7,800,000 Plan assets = $8,000,000 The information…

Q: Jennifer Corp.'s defined benefit pension plan had an amendment as of January 1, 2019, that…

A: The defined benefit pension plan is a retirement plan that helps employees save for retirement.…

Q: Fountain Limited sponsors a defined-benefit pension plan for its employees. On January 1,2020 the…

Q: CARISIC Co. has established a defined benefit pension plan for a loan officer. Annual payments under…

A: Pension plan is part of personal financial planning. After retirement, person need money to survive.…

Q: Sharks Company implemented a defined benefit pension plan for its employees. The following data are…

Q: TAN Company has a defined benefit pension plan for its employees. The plan has been in existence for…

A: Calculate the average remaining service life of Company T.

Q: Great Cosmetics Corp., a company reporting under IFRS, has a defined benefit pension plan. Pension…

A: In order to determine the net defined benefit liability/asset balance the Fair value of plan assets…

Q: Compute the amount of the 2020 increase/decrease in gains or losses and the amount to be amortized…

A: Pension plan: Pension plan can be defined as the plan that provides benefits to the investor in the…

Q: ABC Inc. follows IFRS for financial reporting purposes and has established a defined benefit pension…

A: Pension Benefit Obligation The calculation of pension benefit obligation to added up the service…

Q: Mancuso Corporation amended its pension plan on January 1, 2020, and granted $160,000 of prior…

A: Compute the cost per service year:

Q: Company A has established a defined benefit plan for the employee. Annual payments under the plan…

A: Current service cost (CSO) refers to the increase in the PV (Present Value) of the defined benefit…

Q: the amortization fraction for each year the amortization of the prior service co

A: Amortization is a calculation of an expense deducted to arrive at net income on your financial…

Q: The following information relates to the defined benefit pension plan for the Nicola Company for the…

A: Service costs means expense related to contribution for current period in the business.

Q: Pearl Company sponsors a defined benefit pension plan for its employees. The following data relate…

A: The pension expense consists of four main components such as current service cost, past service…

Q: Nash Company has five employees participating in its defined benefit pension plan. Expected years of…

A: The increase in projected benefit obligation is $81,360. The total number of years to be worked by…

Q: Larkspur Corporation amended its pension plan on January 1, 2020, and granted $138,240 of prior…

A: The service cost related to year 2020 is the amount of cost related to those period

Q: On January 1, 2021, Gillock Climbing Academy instituted a defined benefit pension plan for its…

A: The current service cost of 2021 = $790, 000 will become the opening balance of defined benefit…

Q: On September 1, 2020, Howe Company offered special termination benefits to employees who had reached…

A: The pension benefit is the amount that the individual receives after retirement from employment at…

Q: Company sponsors a defined benefit pension plan for its employees. The following data relate to the…

A: Pension expense is the sum charged to expense by a firm in relation to its liabilities for employee…

Q: Ridley Corporation is a manufacturing company in the Caribbean. The company sponsors a defined…

A: Pension expense is the cost to employer to maintain the employee's pension plan. The employee's…

Q: Jay Company has had a defined benefit pension plan for several years. At the beginning of 2019, Jay…

A: Note: As per our guidelines, only the first three subparts will be solved. 1.

Q: Spath Company adopted a noncontributory defined benefit pension plan on January 1, 2019. Spath uses…

A: Interest cost =Beginning balance of Service cost x discount rate = $300,000 x 10% = $30,000 Expected…

Q: The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal…

A: Journal entries represents the primary reporting of the business transaction in the accounting books…

Q: following additional information for 2019 and 2020: (1) service cost: 2019, $145,000; 2020,…

A: Given: Project benefit obligation $1250000 Prior service cost $1250000 No. of years of service is 20

Q: Lewis Industries adopted a defined benefit pension plan on January 1, 2021. By making the provisions…

A: Requirement 1: Compute the Projected benefit obligation (PBO) as of December 31.

Q: Jennifer Corp.'s defined benefit pension plan had an amendment as of January 1, 2019, that…

A: Defined pension benefit plan is the one under which a specific sum of money is provided to the…

Q: wifty Company sponsors a defined benefit pension plan for its employees. The following data relate…

A: 1. Components of Pension Expense Service Cost…

Q: arasota Company has five employees participating in its defined benefit pension plan. Expected years…

Q: On December 31, 2019, Berry Company determined that the 2019 service cost on its defined benefit…

A: Interest cost = Projected benefit obligation x discount rate = $700,000 x 10% = $70,000 Expected…

Q: On January 1, 2019, Cubs Corporation adopted a defined benefit pension plan. The plan’s service cost…

A: PREPAID AMOUNT: It means an amount of the loan prepaid prior to the agreed due date or, in case of a…

Q: mber Company has 120 employees who are expected to receive benefits under the company's…

A: On a straight line basis, depreciation and amortization, or the process of expensing an asset over a…

Q: Sheridan Company has 160 employees who are expected to receive benefits under the company's…

A: Average remaining service life per of the employee Formula = Expected future years of…

Q: Shamrock Company has five employees participating in its defined benefit pension plan. Expected…

A: Calculation of no. of Service Years: Year Jim Paul Nancy Dave Kathy Total 2020 1 1 1 1 1 5…

Q: Sandhill Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the…

A: GIVEN Sandhill Corp. sponsors a defined benefit pension plan for its employees. On January 1,…

Question

Metlock Company has five employees participating in its defined benefit pension plan. Expected years of future service for these employees at the beginning of 2020 are as follows.

Employee		Future Years of Service
Jim		3
Paul		4
Nancy		5
Dave		6
Kathy		6

On January 1, 2020, the company amended its pension plan, increasing its projected benefit obligation by $ 84,960.

Compute the amount of prior service cost amortization for the years 2020 through 2025 using the years-of-service method, setting up appropriate schedules.

Expert Solution