W13-4 Funny Company received the following selected information from its pension plan trusteeconcerning the operation of the company's defined benefit pension plan for the year ended December 31,2019.January 1, 2019P 1,500,000December 31, 2019P 1,527,000Projected benefit obligationMarket related and fair value of plan assetsAccumulated benefit obligationAccumulated OCI(G/L) Net gain800,0001,130,0001,600,0001,720,000(200,000)The service cost component of pension expense for employee services rendered in the current yearamounted to P77, 000 and the amortization of prior service cost was P120, 000. The company's actualfunding (contributions) of the plan in 2019 amounted to P250, 000. The expected return on plan assets andthe actual rate were both 10%; the interest/discount (settlement) rate was 10%. Accumulated othercomprehensive income (PSC) had a balance of Pl, 200,000 on January 1, 2019. Assume no benefits paid in2019.Instructions:(a) Determine the amounts of the components of pension expense that should be recognized by the companyin 2019.(b) Prepare the journmal entry to record pension expense and the employer's contribution to the pension planin 2019

W13-4 Funny Company received the following selected information from its pension plan trustee concerning the operation of the company's defined benefit pension plan for the year ended December 31, 2019. January 1, 2019 P 1,500,000 December 31, 2019 P 1,527,000 Projected benefit obligation Market related and fair value of plan assets Accumulated benefit obligation Accumulated OCI(G/L) Net gain 800,000 1,600,000 1,130,000 1,720,000 (200,000) The service cost component of pension expense for employee services rendered in the current year amounted to P77, 000 and the amortization of prior service cost was PI20, 000. The company's actual funding (contributions) of the plan in 2019 amounted to P250, 000. The expected return on plan assets and the actual rate were both 10%; the interest/discount (settlement) rate was 10%. Accumulated other comprehensive income (PSC) had a balance of PI, 200,000 on January 1, 2019. Assume no benefits paid in 2019. Instructions: (a) Determine the amounts of the components of pension expense that should be recognized by the company in 2019. (b) Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2019

W13-4 Funny Company received the following selected information from its pension plan trustee concerning the operation of the company's defined benefit pension plan for the year ended December 31, 2019. January 1, 2019 P 1,500,000 December 31, 2019 P 1,527,000 Projected benefit obligation Market related and fair value of plan assets Accumulated benefit obligation Accumulated OCI(G/L) Net gain 800,000 1,600,000 1,130,000 1,720,000 (200,000) The service cost component of pension expense for employee services rendered in the current year amounted to P77, 000 and the amortization of prior service cost was PI20, 000. The company's actual funding (contributions) of the plan in 2019 amounted to P250, 000. The expected return on plan assets and the actual rate were both 10%; the interest/discount (settlement) rate was 10%. Accumulated other comprehensive income (PSC) had a balance of PI, 200,000 on January 1, 2019. Assume no benefits paid in 2019. Instructions: (a) Determine the amounts of the components of pension expense that should be recognized by the company in 2019. (b) Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2019

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 12E

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Crane Company received the following selected information from its pension plan trustee concerning the operation of the company’s defined benefit pension plan for the year ended December 31, 2020. January 1, 2020 December 31, 2020 Projected benefit obligation $1,499,000 $1,527,000 Market-related and fair value of plan assets 802,000 1,127,200 Accumulated benefit obligation 1,622,000 1,742,500 Accumulated OCI (G/L)—Net gain 0 (199,900 ) The service cost component of pension expense for employee services rendered in the current year amounted to $78,000 and the amortization of prior service cost was $120,500. The company’s actual funding (contributions) of the plan in 2020 amounted to $245,000. The expected return on plan assets and the actual rate were both 10%; the interest/discount (settlement) rate was 10%. Accumulated other comprehensive income (PSC) had a balance of $1,205,000 on January 1, 2020. Assume no benefits paid in 2020.…
Crane Company received the following selected information from its pension plan trustee concerning the operation of the company’s defined benefit pension plan for the year ended December 31, 2020. January 1, 2020 December 31, 2020 Projected benefit obligation $1,499,000 $1,527,000 Market-related and fair value of plan assets 802,000 1,127,200 Accumulated benefit obligation 1,622,000 1,742,500 Accumulated OCI (G/L)—Net gain 0 (199,900 ) The service cost component of pension expense for employee services rendered in the current year amounted to $78,000 and the amortization of prior service cost was $120,500. The company’s actual funding (contributions) of the plan in 2020 amounted to $245,000. The expected return on plan assets and the actual rate were both 10%; the interest/discount (settlement) rate was 10%. Accumulated other comprehensive income (PSC) had a balance of $1,205,000 on January 1, 2020. Assume no benefits paid in 2020.…
Crane Company received the following selected information from its pension plan trustee concerning the operation of the company’s defined benefit pension plan for the year ended December 31, 2020. January 1, 2020 December 31, 2020 Projected benefit obligation $1,499,000 $1,527,000 Market-related and fair value of plan assets 802,000 1,127,200 Accumulated benefit obligation 1,622,000 1,742,500 Accumulated OCI (G/L)—Net gain 0 (199,900 ) The service cost component of pension expense for employee services rendered in the current year amounted to $78,000 and the amortization of prior service cost was $120,500. The company’s actual funding (contributions) of the plan in 2020 amounted to $245,000. The expected return on plan assets and the actual rate were both 10%; the interest/discount (settlement) rate was 10%. Accumulated other comprehensive income (PSC) had a balance of $1,205,000 on January 1, 2020. Assume no benefits paid in 2020. (c)…
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