U.S. Metallurgical Inc. reported the following balances in its financial statements and disclosure notes at December 31, 2020.Plan assets$550,e00420,000Projected benefit obligationU.S.M's actuary determined that 2021 service cost is $75,00O. Both the expected and actual rate of return on plan assets are 8%. Theinterest (discount) rate is 5%. U.S.M. contributed $135,000 to the pension fund at the end of 2021, and retirees were paid $59,000 fromplan assets. (Enter your answers in thousands (i.e., 10,000 should be entered as 10).)Required:1. What is the pension expense at the end of 2021?2. What is the projected benefit obligation at the end of 2021?3. What is the plan assets balance at the end of 2021?4. What is the net pension asset or net pension liability at the end of 2021?5. Prepare journal entries to record the (a) pension expense, (b) funding of plan assets, and (c) retiree benefit payments.Complete this question by entering your answers in the tabs below.

“Hey, since there are multiple requirements posted, we will answer first three requirements. If you…

Required: 1. What is the pension expense at the end of 2021? 2. What is the projected benefit obligation at the end of 2021? 3. What is the plan assets balance at the end of 2021? onsinn asset or net pension liability at the end of

Required: 1. What is the pension expense at the end of 2021? 2. What is the projected benefit obligation at the end of 2021? 3. What is the plan assets balance at the end of 2021? onsinn asset or net pension liability at the end of

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 6RE

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Concept explainers

Employee Benefits

In an organization employees are the most important resource and most important asset. They can lead an organization to the sky or can be the reason for unsuccessful of business. Therefore, it is very much important that employees of an organization should be satisfied by the environment of the organization and most importantly with the salary, wages incentives, etc.

Question

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U.S. Metallurgical Inc. reported the following balances in its financial statements and disclosure notes at December 31, 2020.
Plan assets
$550,e00
420,000
Projected benefit obligation
U.S.M's actuary determined that 2021 service cost is $75,00O. Both the expected and actual rate of return on plan assets are 8%. The
interest (discount) rate is 5%. U.S.M. contributed $135,000 to the pension fund at the end of 2021, and retirees were paid $59,000 from
plan assets. (Enter your answers in thousands (i.e., 10,000 should be entered as 10).)
Required:
1. What is the pension expense at the end of 2021?
2. What is the projected benefit obligation at the end of 2021?
3. What is the plan assets balance at the end of 2021?
4. What is the net pension asset or net pension liability at the end of 2021?
5. Prepare journal entries to record the (a) pension expense, (b) funding of plan assets, and (c) retiree benefit payments.
Complete this question by entering your answers in the tabs below.

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Accounting for Employee Compensations and Benefits

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