Smith, Inc. has a pension plan with the following data available for 20X1 and 20X2: 20X1 20X2 $ 30,000 $ 34,000 $ 18,000 $ 20,000 $ 15,000 $ 21,600 $200,000 $240,000 Service cost Interest cost Actual return on plan assets Beginning of year plan assets Discount rate 8% 8% Expected return on plan assets 8% 8% The adjustment to OCI for gain or loss from the return on plan assets for 20X1 is:

Smith, Inc. has a pension plan with the following data available for 20X1 and 20X2: 20X1 20X2 $ 30,000 $ 34,000 $ 18,000 $ 20,000 $ 15,000 $ 21,600 $200,000 $240,000 Service cost Interest cost Actual return on plan assets Beginning of year plan assets Discount rate 8% 8% Expected return on plan assets 8% 8% The adjustment to OCI for gain or loss from the return on plan assets for 20X1 is:

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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Pinecone Company has plan assets of 500,000 at the beginning of the current year and expects to earn 12% on its plan assets during the year. Pinecones service cost is 230,000, and its interest cost is 55,000. Compute Pine-cones pension expense for the current year.
Smith, Inc. has a pension plan with the following data available for 20X1 and 20X2: 20X1 20X2 Service cost $ 30,000 $ 34,000 Interest cost $ 18,000 $ 20,000 Actual return on plan assets $ 15,000 $ 21,600 Beginning of year plan assets $ 200,000 $ 240,000 Discount rate 8 % 8 % Expected return on plan assets 8 % 8 % The adjustment to OCI for gain or loss from the return on plan assets for 20X1 is: Multiple Choice $0. $1,000 gain. $1,000 loss. unknown from information provided.
The following facts apply to the pension plan of Trudy Borke Inc. for the year 20X1: Plan assets, January 1 20X1 $490,000 Projected benefit obligation January 1 20X1 490,000 Settlement rate 8.5% Annual pension service cost 40,000 Contributions (funding) 30,000 Actual return on plan assets 49,700 Benefits paid to retirees 33,400 What is the pension expense for 20X1? items Annual Pension expense cash Pension asset/liability Projected Benefit Obligation Plan Assets Balance, January 1, 20X1 $490,000 Cr. $490,000 Dr. service cost $40,000 Dr. $40,000 Cr. interest cost $49,700 Dr. $49,700 Cr. actual return $49,700 Cr. $49,700 Dr. contributions $30,000 Cr. $30,000 Dr. Benefits $33,400 Dr. $33,400 Cr. journal entry for 20X1 $40,000 $30,000 Cr. $10,000 Cr. Balance 20X1 $10,000 Cr. $546,300 Cr. $536,300 Dr.
The Carrasco Company has provided you the following information pertaining to its defined benefit pension plan that was adopted on January 1, 20X1: The service cost was $750,000 during 20X1 and $1,125,000 during 20X2. The contribution to the pension plan was $600,000 on December 31, 20X1 and $1,200,000 on December 31, 20X2. The actuarially determined discount rate and the expected return on plan assets are both 10%. The actual return on plan assets was 10.5%. Retirement benefits pertaining to years of service prior to 20X1 were not granted to the employees. What is the pension expense for the year ended December 31, 20X2? Multiple Choice $1,140,000 $1,065,000 $1,200,000 $1,137,000
Tesla, Inc. sponsors a defined-benefit pension plan. The following data relates to theoperation of the plan for the year 2021.Service cost $ 545,000Contributions to the plan 330,000Actual return on plan assets 270,000Projected benefit obligation (beginning of year) 3,600,000Fair value of plan assets (beginning of year) 2,400,000The expected return on plan assets and the settlement rate were both 10%. The amountof pension expense reported for 2021 isa. $545,000.b. $635,000.c. $665,000.d. $905,000.
Pension data for the Denver Company include the following for the current calendar year:Discount rate, 8%Expected return on plan assets, 10%Actual return on plan assets, 9%Service cost, $200,000January 1:PBO $1,400,000ABO 1,000,000Plan assets 1,500,000Amortization of prior service cost 20,000Amortization of net gain 4,000December 31:Cash contributions to pension fund $220,000Benefit payments to retirees 240,000a) Determine pension expense for the year.b) Prepare the journal entries to record pension expense and funding for the year.
Cahal-Mitchell Company received the following reports for its defined benefit pension plan for 2022: PBO Plan assets Balance, January 1 $ 470,000 Balance, January 1 $ 259,000 Service cost 194,000 Actual return 38,000 Interest cost 36,000 Annual contribution 117,000 Benefits paid (80,000 ) Benefits paid (80,000 ) Balance, December 31 $ 620,000 Balance, December 31 $ 334,000 The long-term expected rate of return on plan assets is 10%. Assuming no other data is relevant, what is the pension expense for 2022?
Pension data for the Broncos Company include the following for the current calendar year:Discount rate, 8%Expected return on plan assets, 10%Actual return on plan assets, 9%Service cost, $200,000January 1:PBO $1,400,000ABO 1,000,000Plan assets 1,500,000Amortization of prior service cost 20,000Amortization of net gain 4,000December 31:Cash contributions to pension fund $220,000Benefit payments to retirees 240,000Required:1) Determine pension expense for the year. Show your calculation. If not, no credit.2) Prepare the journal entries to record pension expense and funding for the year. 3) Compute the ending balance of PBO (balance on 12/31).
The Shasti Corporation reported the following for the year ending December 31, 20X1: Service cost: $142,610 Plan assets, January 1, 20X1: $1,200,000 Prior service cost amortization: $21,150 Expected return on plan assets: 9% Actual return on plan assets: 8.5% Pension expense: $175,760 Actuarially determined discount rate: 8% What was the projected benefit obligation on January 1, 20X1? Multiple Choice $1,500,000 $1,425,000 $1,200,000 $1,333,333
Bostonian Company provided the following information related to its defined benefit pension plan for 20X1: PBO on 1/1 $ 2,500,000 Fair value of plan assets on 1/1 2,000,000 Service cost 120,000 Actual return on plan assets 320,000 Payments made to retirees on 12/31 100,000 Amortization of prior service cost 40,000 Recognized actuarial losses 50,000 Contributions made to plan at 12/31 80,000 Interest rate for discounting pension obligations 6 % Expected return on plan assets 8 % Required: What amount was recognized in OCI in 20X1? Be sure to indicate whether OCI amount represented a loss or a (gain).
Bostonian Company provided the following information related to its defined benefit pension plan for 20X1: PBO on 1/1 $ 2,500,000 Fair value of plan assets on 1/1 2,000,000 Service cost 120,000 Actual return on plan assets 320,000 Payments made to retirees on 12/31 100,000 Amortization of prior service cost 40,000 Recognized actuarial losses 50,000 Contributions made to plan at 12/31 80,000 Interest rate for discounting pension obligations 6 % Expected return on plan assets 8 % What amount of pension expense should Bostonian report for 20X1? What is the fair value of plan assets at December 31, 20X1? What amount was recognized in OCI in 20X1? Be sure to indicate whether OCI amount represented a loss or a (gain).
Babcock Company received the following reports of its defined benefit pension plan for the current calendar year: PBO Plan assets Balance, January 1 $ 600,000 Balance, January 1 $ 500,000 Service cost 360,000 Actual return 50,000 Interest cost 64,000 Annual contribution 220,000 Benefits paid (90,000) Benefits paid (90,000) Balance, December 31 $ 934,000 Balance, December 31 $ 680,000 The long-term expected rate of return on plan assets is 8%. Assuming no other data are relevant, what is the pension expense for the year?