(Basic Pension Worksheet) The following defined pension data of Rydell Corp. apply to the year 2017.Check the below image for pension data.InstructionsFor 2017, prepare a pension worksheet for Rydell Corp. that shows the journal entry for pension expense and the year-end balances in the related pension accounts. Projected benefit obligation, 1/1/17 (before amendment)Plan assets, 1/1/17Pension liabilityOn January 1, 2017, Rydell Corp., through plan amendment,grants prior service benefits having a present value ofSettlement rate$560,000546,20013,800120,0009%Service costContributions (funding)Actual (expected) return on plan assetsBenefits paid to retireesPrior service cost amortization for 201758,00065,00052,28040,00017,000

The amount that a company deducts as an expense for pension obligations owed to employees is known…

Answered: Projected benefit obligation, 1/1/17…

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter9: Operating Activities

Section: Chapter Questions

Problem 13QE

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Analyzing Changes in Plan Assets and PBO The following information pertains to a company’s defined benefit plan. Balance Fair value of plan assets, Jan. 1, 2020 $2,000 Dr. Fair value of plan assets, Dec. 31, 2020 2,250 Dr. Projected benefit obligation, Jan. 1, 2020 2,000 Cr. Net pension asset (liability), Dec. 31, 2020 80 Cr. Activity 2020 Actual return on plan assets $120 Contributions to plan assets 180 Service cost 200 Other Discount rate 8% Expected rate of return on plan assets 7% Required a. Calculate benefits paid to retirees in 2020. Note: Do not use a negative sign with your answer.$Answer b. Calculate any actuarial gain or loss on the PBO in 2020.Note: Use a negative sign to indicate a loss. $Answer
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?
Information on Complicated Company's defined benefit plan is as follows: Fair value of plan assets, Jan. 1 - P480,000; Return on plan assets (Actual rate of return for the period) - 10%; Contributions to the retirement fund during the year - P800,000; Benefits paid to retirees - P200,000. How much is the balance of the fair value of plan assets as of year-end?
Fair value of plan assets 4,750,000Unamortized past service cost 1,250,000Projected benefit obligation 5,500,000Unrecognized actuarial gain 850,000The transactions for the current year relating to the defined benefit plan are as follows:Current service cost 925,000Discount rate 6%Actual return on plan assets 485,000Contribution to the plan 1,350,000Benefits paid to retirees 995,000Increase in projected benefit obligation due to changes in actuarial assumptions 150,000Effective in the current year, the entity has applied the provisions of revised PAS 19 in relation to the definedbenefit plan.REQUIRED:15. Prepare journal entry to recognize the transitional effect of adopting revised PAS 19.16. Determine the employee benefit expense for the current year.17. Compute the remeasurement related to the defined benefit plan.18. Prepare journal entry to record the employee benefit expense.19. Compute for the Fair Value Plan Asset (FVPA) as of December 31.20. Compute for the projected benefit…
The following information pertains to Rose Corporation's defined benefit plan for the year 2019: Accrued benefit obligation, January 1, 2019 P5,000,000 Fair value of plan assets, January 1, 2019 3,800,000 Current service cost 600,000 Past service cost, determined at 12/31/19 580,000 Interest rate 12% Actual return on plan assets 550,000 Number of years until vesting of benefits 5 years Contributions made during the year 750,000 Actuarial gain on plan assets ? Actuarial gain on benefit obligation 70,000 What was the balance of the retirement benefit asset/liability at January 1, 2019?
On January 1, 2020, McGee Co. had the following balances: Projected benefit obligation $6,400,000 Fair value of plan assets 6,000,000 Other data related to the pension plan for 2020: contributions to the plan 400,000 Benefits paid 350,000 On 1/1/20020, prior service cost was granted having a present value of 150,000 Actual return on plan assets 430,000 Settlement rate 9% Expected rate of return 7% Amortized Prior Service cost…
On January 1, 2020, McGee Co. had the following balances: Projected benefit obligation $6,400,000 Fair value of plan assets 6,000,000 Other data related to the pension plan for 2020: contributions to the plan 400,000 Benefits paid 350,000 On 1/1/20020, prior service cost was granted having a present value of 150,000 Actual return on plan assets 430,000 Settlement rate 9% Expected rate of return 7% Amortized Prior Service cost…
William and Raj Company provided the following information for the year:Projected benefit obligation - January 1 P 700,000Fair value of plan assets - January 1 560,000Pension benefits paid during the year 50,000Current service cost for the year 350,000Past service cost for the year (vesting period 5 years) 85,000Actual return on plan assets 36,000Contributions to the plan 300,000Actuarial loss due to change in assumptions on projected benefit obligation 40,000Discount or settlement rate 10%Expected return on plan assets 12%1. What is the employee benefit expense for the current year?2. How much is the actuarial gain/loss on return on plan assets?3. What is the prepaid/accrued balance of the pension at yearend?4. How much is the defined benefit cost?5. If the pension benefits paid during the year is worth P50,000 but the company was able to pay only P45,000, what would be the employee benefitexpense for the current year assuming the above given is the same?
Pension data for Sterling Properties include the following: ($ in thousands)Service cost, 2021 $112Projected benefit obligation, January 1, 2021 850Plan assets (fair value), January 1, 2021 900Prior service cost—AOCI (2021 amortization, $8) 80Net loss—AOCI (2021 amortization, $1) 101Interest rate, 6%Expected return on plan assets, 10%Actual return on plan assets, 11% Required:Determine pension expense for 2021.
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.
On January 1, 2020, McGee Co. had the following balances:          Projected benefit obligation                                          $6,400,000          Fair value of plan assets       6,000,000    Other data related to the pension plan for 2020:          contributions to the plan                                                      400,000          Benefits paid                                                                           350,000         On 1/1/2020, prior service cost was granted having            a present value of                                                                 150,000          Actual return on plan assets                                                 430,000          Settlement rate                                                                          9%          Expected rate of return                                                              7%          Amortized Prior Service cost…
On January 1, 2020, McGee Co. had the following balances:          Projected benefit obligation                                          $6,400,000          Fair value of plan assets       6,000,000    Other data related to the pension plan for 2020:          contributions to the plan                                                      400,000          Benefits paid                                                                           350,000         On 1/1/2020, prior service cost was granted having            a present value of                                                                 150,000          Actual return on plan assets                                                 430,000          Settlement rate                                                                          9%          Expected rate of return                                                              7%          Amortized Prior Service cost…

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