On January 1, 2021, Dynamax Company had the following balances in its memorandum records: Fair value of plan assets P3,000,000; Defined benefit obligation P3,200,000. Other data related to the retirement benefit plan for 2021 are as follows: Current service cost 140,000 Contribution to the plan Benefits paid Actual return on plan assets 204,000 200,000 185,000 Discount rate 9% Actuarial gain/loss on benefit obligation 20,000 losses

On January 1, 2021, Dynamax Company had the following balances in its memorandum records: Fair value of plan assets P3,000,000; Defined benefit obligation P3,200,000. Other data related to the retirement benefit plan for 2021 are as follows: Current service cost 140,000 Contribution to the plan Benefits paid Actual return on plan assets 204,000 200,000 185,000 Discount rate 9% Actuarial gain/loss on benefit obligation 20,000 losses

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 2MC

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In 2019, Magenta Corporation paid compensation of 45,300 to the participants in a profit sharing plan. During 2019, Magenta Corporation contributed 13,200 to the plan. a. Calculate Magentas deductible amount for 2019. b. Calculate the amount of any contribution carryover from 2019.
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.
The memorandum records of Galindez Trading at January 1, 2021 show the following data: Define Benefit Obligation 2,600,000 Fair value of plan asset 3,000,000 The following information for 2021 is also provided: Service cost 800,000 Actual return on plan assets 300,000 Benefits paid 350,000 Contributions to the plan 780,000 Actuarial loss on remeasurement of defined benefit obligation 100,000 Discount rate 9% How much is the retirement benefit cost that is taken to other comprehensive income for the year 2021? Group of answer choices 130,000 loss 70,000 gain 70,000 loss 130,000 gain
The memorandum records of Galindez Trading at January 1, 2021 show the following data: Define Benefit Obligation 2,600,000 Fair value of plan asset 3,000,000 The following information for 2021 is also provided: Service cost 800,000 Actual return on plan assets 300,000 Benefits paid 350,000 Contributions to the plan 780,000 Actuarial loss on remeasurement of defined benefit obligation 100,000 Discount rate 9% How much is the retirement benefit cost that is taken to other comprehensive income for the year 2021?
The memorandum records of Galindez Trading at January 1, 2021 show the following data: Define Benefit Obligation 2,600,000 Fair value of plan asset 3,000,000 The following information for 2021 is also provided: Service cost 800,000 Actual return on plan assets 300,000 Benefits paid 350,000 Contributions to the plan 780,000 Actuarial loss on remeasurement of defined benefit obligation 100,000 Discount rate 9% How much is the retirement benefit expense taken to profit or loss for the year 2021?
On January 1, 2022, Seismic Slam Company had the following balances in its memorandum records: Fair value of plan assets P3,000,000; Defined benefit obligation P3,400,000. Other related to the retirement benefit plan for 2022 are as follows: Current service cost 200,000 Past service cost 150,000 Contribution to the plan 204,000 Benefits paid 200,000 Discount rate 8% Actual return on plan asset 285,000 Decrease in defined benefit obligation as a result of remeasurement 25,000 What amount of defined benefit cost should be reported in profit or loss?
On January 1, 2020, McGee Co. had the following balances: Projected benefit obligation $7,800,000 Fair value of plan assets 7,800,000 Other data related to the pension plan for 2020: Service cost 315,000 Contributions to the plan 459,000 Benefits paid 450,000 Actual return on plan assets 444,000 Settlement rate 9% Expected rate of return 6% Instructions (a) Determine the projected benefit obligation at December 31, 2020. There are no net gains or losses. (b) Determine the fair value of plan assets at December 31, 2020. (c) Calculate pension expense for 2020. (d) Prepare the journal entry to record pension expense and the contributions for 2020.
The memorandum records of Galindez Trading at January 1, 2021 show the following data: Define Benefit Obligation 2,600,000 Fair value of plan asset 3,000,000 The following information for 2021 is also provided: Service cost 800,000 Actual return on plan assets 300,000 Benefits paid 350,000 Contributions to the plan 780,000 Actuarial loss on remeasurement of defined benefit obligation 100,000 Discount rate 9% How much is the net prepaid/accrued defined benefit cost that was shown on December 31, 2020 balance sheet?
On January 1, 2021, Sandhill Co. has the following balances: Projected benefit obligation $ 5200000 Fair value of plan assets 4600000 The settlement rate is 9%. Other data related to the pension plan for 2021 are: Service cost $ 316000 Amortization of prior service costs 70000 Contributions 356000 Benefits paid 331000 Actual return on plan assets 348000 Amortization of net gain 23600 The balance of the projected benefit obligation at December 31, 2021 is: $5494000. $5653000. $5984000. $5668000.
Use the following information for the next four (4) questions: The memorandum records of Galinde Trading at January 1, 2021 show the following data: Define Benefit Obligation 2,600,000 Fair value of plan asset 3,000,000 Service cost 800,000 Actual return on plan assets 300,000 Benefits paid 350,000 Contributions to the plan 780,000 Actuarial loss on remeasurement of defined benefit obligation 100,000 Discount rate 9% How much is the retirement benefit cost that is taken to other comprehensive income for the year 2021?
On January 1, 2021 COMET Company provided the following data in connection with the defined benefit plan: Fair value of plan assets –₱6,700,000; Projected benefit obligation ₱7,600,000. The accountant revealed the following information for the current year: Current service cost –₱1,750,000; Past service cost –₱300,000; Discount rate – 10%; Expected return on plan assets – 12%; Actual return on plan assets –₱500,000; Contributions to the plan –₱2,000,000; Benefit paid to retirees –₱1,250,000. What is the employee benefit expense on December 31, 2021?
On January 1, 2021, Oriole Co. has the following balances: Projected benefit obligation $3650000 Fair value of plan assets 3150000 The settlement rate is 9%. Other data related to the pension plan for 2021 are: Service cost $315000 Amortization of prior service costs due to increase in benefits 106000 Contributions 515000 Benefits paid 240000 Actual return on plan assets 410000 Amortization of net gain 33000 The fair value of plan assets at December 31, 2021 is $3593000. $4060000. $3650000. $3835000.