Problem 10-2 On January 1, 2020, EMILY COMPANY reported the fair value of plan assets at P6,700,000 and projected benefit obligation at P7,600,000. The entity revealed the following for the current year: Current service cost 1,450,000 Past service cost 300,000 Discount rate 10% Actual return on plan assets 500,000 Contribution to the plan 1,500,000 Benefits paid to retirees 800,000 Required: 1. Determine the following: a. Employee benefit expense b. Remeasurement gain or losses in OCI c. Fair value of assets as at December 31, 2020 d. Projected benefit obligation as at December 31, 2020 e. Prepaid or accrued benefit as at December 31, 2020 2. Entry to record retirement related accounts for 2020.

Problem 10-2 On January 1, 2020, EMILY COMPANY reported the fair value of plan assets at P6,700,000 and projected benefit obligation at P7,600,000. The entity revealed the following for the current year: Current service cost 1,450,000 Past service cost 300,000 Discount rate 10% Actual return on plan assets 500,000 Contribution to the plan 1,500,000 Benefits paid to retirees 800,000 Required: 1. Determine the following: a. Employee benefit expense b. Remeasurement gain or losses in OCI c. Fair value of assets as at December 31, 2020 d. Projected benefit obligation as at December 31, 2020 e. Prepaid or accrued benefit as at December 31, 2020 2. Entry to record retirement related accounts for 2020.

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 3RE: Pinecone Company has plan assets of 500,000 at the beginning of the current year and expects to earn...

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14.Shirley Company obtained the following information at the beginning of the currentyear prior to the adoption of PAS 19R:Projected benefit obligation 9,000,000Fair value of plan assets 10,000,000Unrecognized actuarial loss 1,500,000During the current year, the actuary determined the current service cost at P2,500,000and the discount rate at 10%. The actual return on plan assets was P 1,200,000.Contribution to the plan amounted to P500,000. The actuarial loss due to increase in PBOduring the year was P900,000 and the average remaining service period is 10 years.What is the employee benefit expense?
17 Richelle Company provided the following information during the current year: January 1 December 31 Fair value of plan assets 6,000,000 8,500,000 Projected benefit obligation 5,000,000 6,500,000 Prepaid/accrued benefit cost - surplus 1,000,000 2,000,000 Asset ceiling 700,000 1,200,000 Effect of asset ceiling 300,000 800,000 During the year, entity recognized current service cost of P1,000,000, actual return on plan assets of P400,000, and contribution to plan of P2,100,000. The discount rate is 10%. What is the employee benefit expense for the current year? Group of answer choices 930,000 900,000 870,000 800,000 PreviousNext
12 Richelle Company provided the following information during the current year: January 1 December 31 Fair value of plan assets 6,000,000 8,500,000 Projected benefit obligation 5,000,000 6,500,000 Prepaid/accrued benefit cost - surplus 1,000,000 2,000,000 Asset ceiling 700,000 1,200,000 Effect of asset ceiling 300,000 800,000 During the year, entity recognized current service cost of P1,000,000, actual return on plan assets of P400,000, and contribution to plan of P2,100,000. The discount rate is 10%. What is the net remeasurement loss for the current year? Group of answer choices 670,000 700,000 270,000 730,000 PreviousNext
15. Richelle Company provided the following information during the current year: January 1 December 31 Fair value of plan assets 6,000,000 8,500,000 Projected benefit obligation 5,000,000 6,500,000 Prepaid/accrued benefit cost - surplus 1,000,000 2,000,000 Asset ceiling 700,000 1,200,000 Effect of asset ceiling 300,000 800,000 During the year, entity recognized current service cost of P1,000,000, actual return on plan assets of P400,000, and contribution to plan of P2,100,000. The discount rate is 10%. What is the employee benefit expense for the current year? Group of answer choices 900,000 930,000 870,000 800,000
10 At the beginning of the current year, the memorandum records of Anne Company’s defined benefit plan showed the following: Fair value of plan assets P 7,500,000 Defined benefit obligation (11,000,000) Prepaid(accrued) defined benefit exp. (P3,500,000) The entity determined that its current service cost was P1,000,000 and the interest cost is 10%. The expected return on plan assets was 12% but the actual return during the year was 8%. Other related information at the end of the year: Contribution to the plan P1,200,000 Benefits paid to retirees 1,500,000 Decrease in defined benefit obligation due to changes in actuarial assumptions 200,000 The defined benefit obligation at the end of the current year is Group of answer choices P11,800,000 P11,600,000 P10,500,000 P11,400,000
16 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? Group of answer choices 400,000 accrued 346,000 prepaid 346,000 accrued 400,000 prepaid PreviousNext
13 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 defined benefit liability/asset that will be shown on December 31, 2021 statement of financial position? Group of answer choices 346,000 prepaid 454,000 prepaid 346,000 accrued 454,000 accrued
7.9-10 At the beginning of the current year, the memorandum records of Anne Company’s defined benefit plan showed the following: Fair value of plan assets P 7,500,000 Defined benefit obligation (11,000,000) Prepaid(accrued) defined benefit exp. (P3,500,000) The entity determined that its current service cost was P1,000,000 and the interest cost is 10%. The expected return on plan assets was 12% but the actual return during the year was 8%. Other related information at the end of the year: Contribution to the plan P1,200,000 Benefits paid to retirees 1,500,000 Decrease in defined benefit obligation due to changes in actuarial assumptions 200,000 Calculate the amount to be recognized in the statement of financial position at the end of the current year in accordance with the revised PAS 19 Group of answer choices P3,500,000 P3,650,000 P4,000,000 P3,600,000 Calculate the amount that the entity would recognize…
#14Stefan company provided the following information in relation to a defined benefit plan for thecurrent year:January 1 December 31Fair value of plan assets 1,300,000 1,500,000Projected benefit obligation 1,000,000 1,050,000Prepaid/accrued benefit cost-surplus 300,000 450,000Asset ceiling 100,000 150,000Effect of asset ceiling 200,000 300,000Current service cost 50,000Contribution to the plan 175,000Benefits paid 75,000Discount rate 10%What is the net remeasurement loss for the current year? 85,000 pls provide solution for this answer
5. You gathered the following information related to Ashley Company’s the defined benefit plan for the current year ended December 31: Fair value of plan assets: P2,100 million at January 1, and P2,300 million at December 31 Present value of obligation to provide benefits: P2,200 million at January 1, and P2,600 million at December 31 Contributions paid to the fund: P80 million Benefits paid to retired employees: P50 million    The defined benefit cost for the year is Group of answer choices P250 million P280 million P200 million P120 million
15 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% What are the balances of Benefit Obligation and Plan Asset at December 31, 2021? Group of answer choices 3,184,000 3,730,000 3,384,000 3,730,000 3,384,000 3,700,000 3,184,000 3,700,000
19. Chanika Company provided the following information for the current year: Fair value of plan assets – January 1 3,500,000 Fair value of plan assets – December 31 5,250,000 Employer contribution 1,100,000 Benefits paid 850,000    What was the actual return on plan assets for the current year? Group of answer choices 1,500,000 1,750,000 2,600,000 2,000,000