Question 2( Fiscella Landry Corp. (FLC) is a publicly accountable entity that operates a defined benefit plan for its employees. Information about the pension plan is as follows: Defined benefit obligation -- December 31, 2019 Pension plan assets $13,400,000 $ 9,500,000 December 31, 2019 Current service cost -2020* Benefit payments to retirees Actual return on plan assets Contributions to pension plan -- 2020* $ 2,300,000 $ 1.200,000 $ 210,000 $2,500,000 - 2020 - 2020 - Yield on high-quality corporate bonds Defined benefit obligation -- December 31, 2020 (per actuary) * Each of these occurred (or was accrued) at December 31, 2020. 5% $18,840,000 On January 2, 2020, FLC made a change to the defined benefit plan formula. Because FLC made the change retrospectively with regard to services rendered by current employees, the defined benefit obligation increased by $3,600,000 on this date, In addition to the contributions listed above, FLC made a $3,000,000 contribution to the pension plan assets on June 30, 2020. Required: Calculate the ending balances of FLC's defined benefit obligation and pension plan assets at December 31, 2020. Start with the opening balance and reconcile to the ending balance

Question 2( Fiscella Landry Corp. (FLC) is a publicly accountable entity that operates a defined benefit plan for its employees. Information about the pension plan is as follows: Defined benefit obligation -- December 31, 2019 Pension plan assets $13,400,000 $ 9,500,000 December 31, 2019 Current service cost -2020* Benefit payments to retirees Actual return on plan assets Contributions to pension plan -- 2020* $ 2,300,000 $ 1.200,000 $ 210,000 $2,500,000 - 2020 - 2020 - Yield on high-quality corporate bonds Defined benefit obligation -- December 31, 2020 (per actuary) * Each of these occurred (or was accrued) at December 31, 2020. 5% $18,840,000 On January 2, 2020, FLC made a change to the defined benefit plan formula. Because FLC made the change retrospectively with regard to services rendered by current employees, the defined benefit obligation increased by $3,600,000 on this date, In addition to the contributions listed above, FLC made a $3,000,000 contribution to the pension plan assets on June 30, 2020. Required: Calculate the ending balances of FLC's defined benefit obligation and pension plan assets at December 31, 2020. Start with the opening balance and reconcile to the ending balance

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 4E

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Question 16 Buffalo Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan. Plan assets $463,200 Projected benefit obligation 578,200 Pension asset/liability 115,000 Accumulated OCI (PSC) 100,100 Dr. As a result of the operation of the plan during 2020, the following additional data are provided by the actuary. Service cost $86,600 Settlement rate, 8% Actual return on plan assets 53,200 Amortization of prior service cost 18,000 Expected return on plan assets 50,200 Unexpected loss from change in projected benefit obligation,   due to change in actuarial predictions 79,600 Contributions 99,600 Benefits paid retirees 85,100 Prepare the journal entry for pension expense for 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and…
Question 16# Buffalo Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan. Plan assets $463,200 Projected benefit obligation 578,200 Pension asset/liability 115,000 Accumulated OCI (PSC) 100,100 Dr. As a result of the operation of the plan during 2020, the following additional data are provided by the actuary. Service cost $86,600 Settlement rate, 8% Actual return on plan assets 53,200 Amortization of prior service cost 18,000 Expected return on plan assets 50,200 Unexpected loss from change in projected benefit obligation,   due to change in actuarial predictions 79,600 Contributions 99,600 Benefits paid retirees 85,100 (b) Prepare the journal entry for pension expense for 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the…
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