How much is the employee benefit expense? PV of DBO – Jan. 1, 20x12,000,000FVPA – Jan.1, 20x11,800,000PV of DBO –Dec. 31, 20x12,900,000FVPA, end. – Dec. 31, 20x12,600,000Current service cost400,000Actuarial loss200,000Return on plan assets120,000Discount rate10%

An cost is the decrease in asset value as it is used to produce income. If the asset will be…

PV of DBO – Jan. 1, 20x1 2,000,000 FVPA– Jan.1, 20x1 1,800,000 PV of DBO – Dec. 31, 20x1 2,900,000 EVPA, end. – Dec. 31, 20x1 2,600,000 Current service cost 400,000 Actuarial loss 200,000 Return on plan assets 120,000 Discount rate 10%

PV of DBO – Jan. 1, 20x1 2,000,000 FVPA– Jan.1, 20x1 1,800,000 PV of DBO – Dec. 31, 20x1 2,900,000 EVPA, end. – Dec. 31, 20x1 2,600,000 Current service cost 400,000 Actuarial loss 200,000 Return on plan assets 120,000 Discount rate 10%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Nelson Corp. is considering the purchase of a new piece of equipment. The cost savings from the…

A: Solution: Initial investment = $420,000 Annual cash inflows = $105,000 Payback period = Initial…

Q: Vin Diesel Company uses a standard costing system in which it applies manufacturing overhead to…

A: Total budgeted fixed factory overhead = Total applied factory overhead - Total Variable factory…

Q: A travel agency offers Worldwide Flight Ltd. £150,000 for a round-trip flight service from Singapore…

A: In case of Special Orders, the company needs to find the relevant cost. The Relevant Cost includes…

Q: 28. SimplengTaksil Company produces furniture. It has four products, tables, chairs, cabinets and…

A: Contribution means the difference between the selling price and variable cost . Fixed cost remain…

Q: The Sweetwater Candy Company would like to buy a new machine that would automatically “dip”…

A: 1. Determination of annual net cash inflows Annual savings in operating cost: Operating cost…

Q: Doctor Strange Inc. issues … a $100,000, 5-year, 8% bond. Price this bond to yield 10%

A: Calculation of Selling Price of Bonds Face Value of Bonds = $ 100,000 Annual rate of interest = 8%…

Q: 1. Prepare journal entries to record the income tax and 2. Present the income tax expense in the…

A: Routine transactions, such as customer billings and supplier invoicing, should not be recorded using…

Q: The Dixon Company begins the budget period with 20 pounds in Materials Inventory costing $1.50 per…

A: FIFO is first in first out inventory valuation method under which inventory which is purchased first…

Q: Question 2 Using the above information on Pamlico Manufacturing Ltd, prepare the statement of…

A: Income statement: Income statement has been drafted by a company to know about their profitability…

Q: Pinkton Corporation keeps careful track of the time required to fill orders. The times recorded for…

A: Delivery cycle time: It implies to the time gap that exists between the receipt of an order from the…

Q: Use the information provided below to prepare the Cash Flow Statement of Rolex Limited for the year…

A: It is important in the business entity to prepare the Cash flow statement which can be determine the…

Q: PERFORMANCE TASK Using your columnar paper, Prepare a General Journal and Ledger given the…

A: General Journal: It implies to the original accounting book in which transactions are recorded by…

Q: Manually journalize the following:

A: Journal Entries : Date Particulars Debit (P) Credit (P) 1 Bank a/c 30,000 1612CN a/c…

Q: Tio, Inc. a U.S. parent owns two subsidiaries, Ecuador Inc. and Taiwan Inc. The corporate tax rate…

A: It is the rate of tax at which companies are charged to pay tax on their taxable income. For a…

Q: On January 1, 20x1, Lock Co. enters into a 4-year lease of office equipment. The rent in 20x1 is…

A: Lease is a form of contract or arrangement between two parties under which one party provides it's…

Q: Required: a. if arturito will accept the special order, what is the incrementak benefit(loss)?

A: Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…

Q: Malcom's financial statements revealed uncollectible accounts expense of S8,000, accounts receivable…

A: Net realizable value = Accounts receivable - Ending Allowance for uncollectible accounts where,…

Q: Cortland Corp is considering the purchase of a new piece of equipment. The cost savings from the…

A: annual net income = annual increase in net cash flows - Depreciation If no specific method is given…

Q: Cost of equipment P1,200,000 5 years 4 years Useful life of equipment Lease term Annual rent payable…

A: Sales type lease Accounting Concept of lease accounting lessor point of view Gross Investment…

Q: Puritan Apparels is a clothing retailer. Unit costs associated with one of its products, Product DCF…

A: Solution: Indirect non manufacturing variable cost are variable cost that are not manufacturing…

Q: (hour) 5.60 5.76 20 3.00 3.04 30 3.80 3.88 35 4.80 5.00 15

A: Given as,

Q: Warmuplang Corporation showed the following costs for 2020 Warehouse depreciation…

A: Difference in net income under absorption and variable costing Increase in inventory (units) x…

Q: Consider the following statements about absorption costing and variable costing: Variable costing…

A: Absorption costing and variable costing are managerial accounting and financial reporting cost…

Q: BETA Company began operations in January 2021. Financial statements for the years ended December 31,…

A: Effects of 2021 errors on 2022 Ending Inventory 16000-Understated +16000…

Q: The ledger of Mai Company includes the following accounts with normal balances as of December 31:…

A: Closing Journal Entry: Closing journal entries are passed at the end of the accounting period. In…

Q: The following information is for the Jeffries Corporation: Selling price per unit Variable cost per…

A: The breakeven point is the total sales at which a company loses money. At this time, a company can…

Q: Use the information below provided by Angel Baby Angel Company: Sales 8,250,000.00 Operating…

A: Solution:- 1)Calculation of Times interest earned ratio as follows under:- Times interest earned…

Q: On January 1, Bramble Corp. issued 10 year, S6,000,000, 9% bonds for $6,842,830. The market rate of…

A: Introduction: An amortizing loan is one with monthly payments that go toward the principle. Payment…

Q: Question 63 Modified True or False T means Correct and F means Wrong I. The longer its customers…

A: Cash receipts and payments are activities that take place in cash base accounting. When a financial…

Q: Warmuplang Corporation showed the following costs for 2020 Warehouse depreciation P 300,000 Salaries…

Q: lo can i get help with something

A: All accounting related queries and question solutions are been provided.

Q: Refer to the following financial information of Scholz Company: NOPAT 8.250.000.00 EBITDA…

A: Formula: Economic value added (EVA) = Net operating profit after tax - Total invested capital x WACC…

Q: The bank statement for Clive Company indicates a balance of $30,000 on September 30, 2021. After the…

A: Bank reconciliation Statement: It is a statement drawn up by the business to verify the cash book…

Q: The AACA Company is on a calendar year basis. The following data were found during your audit:…

A: FOB is also written as freight on board. FOB shipping point means the risk and rewards of ownership…

Q: Which of the following should financial information not be? Group of answer choices a.…

A: Financial information should be reliable, accurate, timely and substantiated.

Q: hasing dling materials nine setups ections ies $70,000 33,333 70,500 25,500 45,000 re considering…

A: The overhead rate is a cost associated with the production of a product or service. Overhead costs…

Q: Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago…

A: Days' sales in inventory confirms how many days' sales are in ending inventory. Higher the number of…

Q: Use the information provided below to prepare the Cash Flow Statement of Rolex Limited for the year…

A: Cash Flow Statement There are mainly three segment of Cash flow statement. The details are given…

Q: 7

A: An Income statement shows the financial position of the company It is an important statement that…

Q: Basiclang Company is assessing whether to sell its unused car parts for P27,000. The parts were…

A: The question is related to Decision making. In decision making whether to sell or not only relevant…

Q: ABC Company includes 1 coupon in each box of coffee it sells. A planner is offered as a premium to…

A: Answer - Calculation of the Net Premium Cost Particulars Amount Cost of Coffee P150…

Q: aw Products, Inc. developed standard costs for direct material and direct labor. In 2017, All…

A: Labor efficiency variance = (Standard hours - Actual hours) * standard rate

Q: for the following damages: other driver, $25,000; passenger 1, $20,000; passenger 2, $9,000; other…

A: There are different types of auto insurance and depending on each plan there are different types of…

Q: Current Attempt in Progress AI Decenber 31,2021, vanhoe Company made an accrued expense adjusting…

Q: BETA Company began operations in January 2021. Financial statements for the years ended December 31,…

A: Retained earnings refer to the amount of profit which is retained by the business entity after the…

Q: Yoshi Company completed the following transactions and events involving its delivery trucks. Year…

A: Introduction: Depreciation is the reduction in the price of a tangible item owing to a range of…

Q: The following transactions pertain to a branch’s first month’s operations: a. The home office sent…

A: Journal entries is the transactions, which helps us to keeping or making records of transactions of…

Q: Crane Medical manufactures hospital beds and other institutional furniture. The company’s…

A: The question is based on the concept of Financial Ratios. Gross margin percentage is calculated by…

Q: .. As an inducement to enter a lease, Legaspi Company, a lessor, grants Daraga Company, a lessee,…

A: Solution... Monthly rent expenses = P500,000 Rent starts from = 1st April Rent expenses on June…

Q: MahirapTo Company started in 2018, it produced 100,000 units from 2018 to 2020. The company had an…

A: Mixed cost for overhead is separated below using following formula of high and low method:- Variable…

Concept explainers

Financial and legal aspects of employment

Federal and state legislation, regulation of all labor laws, and government-imposed employment law all contribute to a legal environment. Employment law governs the relationship between employer and employee. Labor laws govern the relationship between employee groups such as labor unions and their employers. Many employment laws have been enacted by the government to protect the financial rights and interests of employees. To protect an individual's employment, the United States Department of Labor has enacted 180 worker protection laws. It also covers financial and workplace safety laws such as minimum wage requirements, parental leave benefits, paid leave benefits, social security, and discrimination.

Question

How much is the employee benefit expense?

PV of DBO – Jan. 1, 20x1
2,000,000
FVPA – Jan.1, 20x1
1,800,000
PV of DBO –Dec. 31, 20x1
2,900,000
FVPA, end. – Dec. 31, 20x1
2,600,000
Current service cost
400,000
Actuarial loss
200,000
Return on plan assets
120,000
Discount rate
10%

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3: Conclusion

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Financial and Legal Aspects of Employment

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Do not copy from bartleby In 20x1, XYZ Company enters into a construction contract with a customer. The contract price is P10,000,000.Information on the contract follows:20X1 20X2 20X3Contract costs incurred during the year P2,645,132 P236,451 P2,657,000Estimated costs to complete 2,697,451 2,116,777 -Progress Billings 5,000,000 3,000,000 2,000,000Collections on progress billings 2,000,000 4,000,000 4,000,000Using the cost-to-cost method, compute the following: Note: Use up to two (2) decimal places in presenting the answer for percentage of completion. Use six (6)decimal places when applying the percentage.7. Realized gross profit in 20x2 _____________8. The balance of "Contract Liability" at the end of 20x2 _____________9. Revenue that should be recognized in 20x3 _____________10. Realized gross profit in 20x3
Fair value of plan assets 6,000,000 9,000,000Projected benefit obligation 4,500,000 5,000,000Prepaid/accrued benefit cost – surplus 1,500,000 4,000,000Asset ceiling 1,000,000 2,500,000Effect of asset ceiling 500,000 1,500,000During the year, the entity recognized current service cost P2,000,000, actual return on plan assets P400,000,and contribution to the plan P4,550,000 and benefits paid P1,950,000. The discount rate is 10%REQUIRED:6. Compute the employee benefit expense for the current year7. Compute the net remeasurement loss for the current year8. Compute the defined benefit cost9. Compute the amount of prepaid benefit cost that should be reported on December 31
Problem 6Four, Inc. provided the following balances at the end of the current year:Wasting asset, at cost P20,000,000Accumulated depletion 2,500,000Share capital 50,000,000Capital liquidated 1,800,000Retained earnings 1,500,000Depletion based on 50,000 units at P20 per unit 1,000,000Inventory of resource deposit 100,000Required:a. Compute the maximum dividend that can be declared.b. Prepare the journal entry to record the declaration of P2,000,000 dividend.
1) The total assets of Best Service is P500,000. Twenty percent (20%) represents the claim of the owner. Its liability, therefore is: a. P100,000 b. P400,000 c. P500,000 d. None 2) The owner’s capital is P50,000. The creditors have 60% claim on the total assets. The correct amount of assets would be: a. P 83,333 b. P 80,000 c. P 30,000 d. P125,000
The divisional residual income is: 8,000,000 P240,000 P1,760,000 none of the choices
Q6 Selected data from Box Division's accounting records revealed the following: Sales $ 825,000 Average investment $ 440,000 Net operating income $ 66,000 Minimum rate of return (divisional cost of capital) 14% Box Division's asset turnover (AT) is calculated to be: (Round your answer to three decimal places.) Multiple Choice 4.270. 1.070. 1.875. 12.500. 1.625.
SCRUMPTIOUS CUPCAKESProfit and loss accountfor the year ended 30 April 20202020£SalesSales 220,000Cost of sales 120,000Gross Profit 100,000ExpensesSalaries 24,000Other Fixed cost 4,800Distribution 3,000Advertising 4,500Rent 13,200AHUtilities 3,600Other Cost 4,00057,100Operating Profit 42,900 SCRUMPTIOUS CUPCAKESBalance Sheetas at 30 April 20202020£Fixed assetsIntangible assets -Tangible assets 35,000Investments -35,000Current assetsStocks 3,000Debtors 10,000Cash at bank and in hand 6,30019,300Written ReportsCreditors: amounts falling duewithin one year (11,300)Net Current Assets 8,000Total assets less currentliabilities 43,000Net Assets 43,000Capital and reservesCalled up share capital 100Profit and loss account 42,900Shareholders' funds 43,000 please calculate the folliwing ratios: Profitability Ratios – Gross Profit Margin, Net Profit Margin and ROCE● Liquidity – Current Test and Acid Test● Gearing● Activity/Performance – Stock Turnover, Debtors’ Collection Period and AssetTurnover…
The following results are available for Division X and Y:Division X Division YProfit before interest and tax P185 000 P172, 000Capital employed P1, 540, 000 P1, 650, 000The cost of capital is 10%.Calculate and comment on the performance of the departments based on:a. Return on capital employed (4 marks)b. Residual incom
. Using a MARR of 15%, the preferred Alternative is:TABLE P6-82 Data for Problems 6-82 through 6-85 A B C D ECapital investment $60,000 $90,000 $40,000 $30,000 $70,000Annual expenses 30,000 40,000 25,000 15,000 35,000Annual revenues 50,000 52,000 38,000 28,000 45,000Market value at EOY 10 10,000 15,000 10,000 10,000 15,000IRR ??? 7.4% 30.8% 42.5% 9.2%(a) Do nothing (b) Alt. A (c) Alt. B(d) Alt. C (e) Alt. D (f) Alt. E
PROBLEM 6The following data were taken from the statement of realization andliquidation of CRASHED CO.Assets to be realized 1,375,000 Assets acquired 750,000Supplementary credits 2,800,000 Assets realized 1,200,000Liabilities to be liquidated 2,250,000 Liabilities assumed 1,625,000Supplementary charges 3,125,000 Assets not realized 1,375,000Liabilities liquidated 1,875,000 Liabilities not liquidated 1,700,000The ending balances of capital stock and retained earnings are P1,500,000 and P238,000, respectively. A net loss of P738,000 was reported for the period. Requirements: 1) What is the net gain/(loss) for the three-month period?A. (325,000) C. 425,000B. 250,000 D. 750,0002) How much is the ending balance of cash?A. 425,000 C. 1,325,000B. 575,000 D. 1,375,000
Home office BranchSales P 365,000 P174,000Shipment to branch 90,000Purchases from outsiders 220,000 35,000Advertising expense 13,700 2,500Salaries and Commission 35,000 9,500Rent Expense 10,000 2,000Miscellaneous expense 3,300 500Shipment from home Office 112,500Inventories, January 1:Home Office 85,000Branch:From outsiders 9,500From home office at 2018 billed price30,000Inventories, December 31:Home Office 65,000BranchFrom outsider 6,500From Home office at 2018 billed price30,0001. The branch inventory at cost on December 31, 2021 is:a. P30,500 c. P70,000b. 31,500 d. 36,5002. The combined net income of the Home Office and the Branch on December 31, 2021 is:a. P111,000 c. P250,500b. 63,000 d. 174,000
28 - IR şletme our total net assets acquired 1,000,000 due to the cost of TL Green aş. £ 800,000 potential customers. Which of the following accounts is debited in the record that needs to be made regarding this transaction? a) Accumulated Depreciation Hs. B) Goodwill Hs. NS) Special Costs Hs. D) Establishment and Organization Expenses Hs. TO) Preparation and Development Expenses Hs.