What is the amount of actuarial gain or loss that will be taken to other comprehensive income? if gain positive amount, if loss negative amount Example: gain --> 1,000 loss --> (1,000)What is the actual return on pension plan assets? ABC Company showed in its memorandum records the following balances for the year 2020:Fair value of plan assets, 1/1/2020Fair value of plan assets, 12/31/2020Contributions to the planBenefits paid to the retireesInterest cost used by the entityP 4,600,0004,950,000500,000700,00010%

Calculation of Actuarial Gain. Plan Assets 1/1/2020 4600000 Add: Interest (4600000x10%) 460000…

What is the amount of actuarial gain or loss that will be taken to other comprehensive income? if gain positive amount, if loss negative amount Example: gain --> 1,000 loss --> (1,000) What is the actual return on pension plan assets?

What is the amount of actuarial gain or loss that will be taken to other comprehensive income? if gain positive amount, if loss negative amount Example: gain --> 1,000 loss --> (1,000) What is the actual return on pension plan assets?

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: Costs incurred are summarized as follows: WIP - Polishing Process A/C January 1 Bal. ...

A: Direct Materials refers to the raw materials used to manufacture a product. Normally all the direct ...

Q: Apple Inc. iPod Division has the following information: Sales $6,000,000 Variable costs 3,000,000 Fi...

A: If a division is eleminated/dropped, then the incremental effect on the net income of the company wi...

Q: Plant assets are: O Tangible assets used in the operation of a business that have a useful life of m...

A: Solution: A plant asset is a fixed assets having useful life of more than a year and that is used in...

Q: Cullumber Company provides you with the following balance sheet information as of December 31, 2017....

A: A balance sheet is a financial statement that displays a company's assets, liabilities, and equity. ...

Q: Wilson Corporation has budgeted sales and production over the next quarter as follows: July 40,000 4...

A: Lets understand the basics. Budget is prepared by the management to estimate the profit and loss of ...

Q: XYZ has forecast its sales revenues and purchases for the last 5 months of 2015 to be as follows: S...

A: The cash budget is prepared to record cash receipts and cash disbursements made during the period. I...

Q: 1,80,00,000. Building Fund 24,00,000, Prize Fund 12,00,000, Reserve Fund (b) Balances as at 1.4.2020...

A: Capital Fund : It is also called accumulated Fund or General fund. It is actually the capital of a n...

Q: Bruell Electronics Co. is developing a new product, surge protectors for high-voltage electrical flo...

A: Number of units to be sold to earn target profit = (Additional fixed cost + Target profit)/ contribu...

Q: Cullumber Chrome Bumpers bought two acres of land with an old office building on it that was deemed ...

A: Cost accounting is a kind of managerial accounting that attempts to represent a company's total cost...

Q: Oriole Company, a major retailer of bicycles and accessories, operates several stores and is a publi...

A: ORIOLE COMPANY Cash Flow Statement (Indirect Method) For the year ended May 31, 2020 Cash Flow...

Q: (a) For a MARR of 9%, compute the net present worth for each project, and determine the acceptabilit...

A: Period Project- A Project- B Project- C 0 $ (150) $ (120) $ 150 1...

Q: A corporation recognizes a gain or loss O only when bonds are converted into common stock. when bond...

A: Redemption of Bond: When interest rates fall dramatically, bond issuers are forced to redeem their c...

Q: Which financial statement shows the financial performance of the company on a cash basis?A. balance ...

A: Financial statements are those reports and statements that are prepared at the end of accounting per...

Q: Freetown Manufacturing company acquired three patents in January 2016. The patents have different l...

A: As per Bartelby policy, only three interlink parts are answered. If you want any specific part to be...

Q: Total Sales revenue (30,000 units) $750,000 Variable costs 450,000 Contribution margin 300,000 Fixed...

A: Contribution margin ratio shows the percentage amount of contribution earned on given sales. It is a...

Q: Silver Limited is a manufacturing company that produces furniture. To improve efficiency and usefuln...

A: Accounting is the process of collecting, analyzing, recording data, and preparing reports on the bas...

Q: Explain the link between Human Capital and Population Growth and

Q: ABC Inc. began operations on July 1,2019. The company recognizes income from long term construction ...

A: Solution Concept When the income recognized in financial statement is greater than the income as per...

Q: Santiago Enterprises has the following potentially dilutive securities that it has issued prior to t...

A: Earning Per share: It shows how much company generate money per share and is calculated by dividing ...

Q: Don Johnson is the management accountant for Cari-Blocks (CB), which manufactures specialty blocks. ...

A: Budgeted Overheads: Budgeted overheads are how much overhead expenses are planned to be caused durin...

Q: Fudction: DATE; Formula: Add, Multiply, Divide; Cell Referencing Using Excel to Compute Interest and...

A: In the context of the given question, we can compute the interest and maturity date using the follow...

Q: A credit sale of $3.,500 is made on July 15, terms 2/10, n/30, on which a return of $200 is granted ...

A: Formula: Net sales = Sales - sales returns and allowances

Q: The December 31, 2019 statement of financial position of Help Company included the following informa...

A: Notes Receivable is a form of current asset in which customers to whom goods and services are provid...

Q: Following are the merchandising transactions of Dollar Store. November 1 Dolar Store purchases merch...

A: Journal entries are used to keep records of financial transactions. To generate a journal entry, you...

Q: ABC acquired a patent on an oil extraction technique on January 1, 2018 for $12,000,000. It was expe...

A: Note: Impairment is not done for the intangible assets i.e Patent, trademark etc. Annual amortizatio...

Q: On August 1, 2010, a company issues bonds with a par value of $600,000. The bonds mature in 10 years...

A: Total premium on bonds = Issue value of the bonds - Face value of the bonds Interest accrued at Dece...

Q: Company E is a retailer of commercial and residential plumbing products. Steven Owens, the company’s...

A: A company's operating expense is a cost incurred as part of its normal operations. Operating expense...

Q: The Clearinghouse Sweepstakes has just informed you that you have won $1 million. The amount is to b...

A: Formula: Present Value of winnings = Amount to be received per year X Present value of annuity of $ ...

Q: Use the following information to answer the questions below. Company 1 Company 2 Sales $50,000 $50,0...

A: Degree of operating leverage- The degree of operating leverage process how much a company's operatio...

Q: On July 1, 2019, Crane Company purchased new equipment for $80,000. Its estimated useful life was 5 ...

A: Depreciation is charged against the value of fixed assets. It can be calculated by using the straigh...

Q: In you own understanding, discuss briefly the salient features of accounting models such as Entity C...

A: Accounting concepts are basic rules , assumptions and conditions that defin...

Q: On December 1. 2021 Ebenezer Buenaventura opened EB Computer Shop, by investing P250,000 cash from h...

A: Journal entry recording is the initial step in accounting process, under which atleast one account i...

Q: Use the following information for the next 2 items: 2022 Formula One World Championship pre-season t...

A: Solution Goodwill is an intangible asset that accounts for the excess purchase price of another comp...

Q: Plant Design is a major requirement for you to be able to graduate BS ChE in Batangas State Universi...

Q: he explains that she sold one of the properties has been listed the longest in the market. However, ...

A: Sale of capital assets (property) which is been listed longest in the market for sell is now being...

Q: Carla Corporation enters into a 5-year lease of equipment on December 31, 2019, which requires 5 ann...

A: answers:- Date Particulars Debit ($) Credit ($) Dec 31 2019 Investment in lease 162,109 ...

Q: Comparative balance sheet accounts of Sheridan Inc. are presented below. SHERIDAN INC. COMPARATI...

A: Statement of Cash Flow - Statement of Cash Flow is the statement that shows the actual movement of c...

Q: The December 31, 2019 statement of financial position of Help Company included the following informa...

A: Balance sheet: It is a financial statement that states the value of assets, liabilities, and equit...

Q: Recently, it was announced that two giant French retailers, Carrefour SA and Promodes SA, would merg...

A: Financial Ratio: A financial ratio, or bookkeeping proportion, is the general extent of two chosen m...

Q: On June 30, 2022, the company sold old equipment for $14,400. The equipment originally cost $21,600 ...

A: To make a journal entry, you enter transaction data into your company's books. Your journal entries ...

Q: On January 1, 2019, Carson Inc sold used equipment with a cost of S15,000 and a carrying amount of $...

A: ANSWER On January 1, 2019, Carson Inc sold used equipment with a cost of S15,000 and a carryingamo...

Q: n January 1, 20x1, an entity issues bonds with face amount of P5,000,000 for P5,773,129. The bonds m...

A: The bonds are issued at premium when market rate is lower than the coupon rate of bonds payable.

Q: A company that sells its single product for P40 per unit had after-tax net income for the past year ...

A: Hi student Since there are multiple questions, we will answer only first question.

Q: QUESTION 2 On May 1, 2018, Bodie Co. accepted a $9300 face value note as evidence of a loan it made ...

A: Interest revenue is the earnings that a person receives from any investment and this earnings is in ...

Q: (a) Determine the values of X and Y.

A: Year Project-1 Project-2 0 -1030 -1030 1 450 300 2 950 Y 3 X 700

Q: Company 1 Company 2 Selling price per deck $ 3.00 $3.00 Cost of paper deck 0.62 0.65 Printing ink pe...

A: Breakeven is the point where company's profit is equal to 0. This is the point where company earns n...

Q: Breakeven Point for Multiple Products E9A. Hamburgers and More, Inc., sells hamburgers, drinks, and ...

A: Contribution per unit = Selling price per unit - Variable cost per unit Hamb...

Q: Blossom Company sells merchandise on account for $3300 to Morton Company with credit terms of 2/7, n...

A: Journal entries are the basic method for recording financial transactions in the books of accounts. ...

Q: Greenspan Supply does not segregate sales and sales taxes at the time of sale. The register total fo...

A: Workings: Greenspan supply can segregate the sales and sales tax payable by computing the sales tax ...

Q: e fo

A: Tax refers to the mandatory charge levied by the government over the income gained by an entity.

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

What is the amount of actuarial gain or loss that will be taken to other comprehensive income? if gain positive amount, if loss negative amount Example: gain --> 1,000 loss --> (1,000)

What is the actual return on pension plan assets?

ABC Company showed in its memorandum records the following balances for the year 2020:
Fair value of plan assets, 1/1/2020
Fair value of plan assets, 12/31/2020
Contributions to the plan
Benefits paid to the retirees
Interest cost used by the entity
P 4,600,000
4,950,000
500,000
700,000
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 by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Employee Compensations and Benefits

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

Information about the defined benefit plan of the company is shown belowFair value on plan asset, January 1, 2021 3,000,000Contribution to the fund 1,500,000Return on plan assets 160,000Defined benefit liability. December 31, 2021 410,000Defined benefit obligation, December 31, 2021 4,550,000What is the balance of the fair value on plan asset as of December 31, 2021?
On December 31, 2020, GHI Company had the following balances in its memorandum records related to its defined benefit plan:· Fair value of plan assets- P10,000,000· Benefit obligation- P12,000,000 Other relevant information relating to the plan for 2021 follows:· Current service cost- P2,000,000· Past service cost- P1,300,000· Actual return on plan assets- P1,500,000· Actuarial gain on benefit obligation- P400,000· Actuarial gain on plan assets- P500,000· Present value of benefits settled- P900,000· Settlement price- P800,000· Contribution to the plan- P3,100,000· Discount rate- 12% How much is the employee benefit expense taken to profit or loss during 2021?
On December 31, 2020, Detroit Company had the following balances in its memorandum records related to its defined benefit plan: - Fair value of plan assets-P10,000,000 - Benefit obligation- P12,000,000 Other relevant information relating to the plan for 2021 follows: • Current service cost- P2,000,000 • Past service cost- P1,300,000 Actual return on plan assets- P1,500,000 • Actuarial gain on benefit obligation- P400,000 • Actuarial gain on plan assets- P500,000 - Present value of benefits settled- P900,000 • Settlement price-P800,000 . Contribution to the plan- P3,100,000 - Discount rate- 12% How much is the employee benefit expense taken to profit or loss during 2021? A.P3,300,000B.P3,640,000C.P3,540,000D.P3,440,000
On December 31, 2020, ABC Company had the following balances in its memorandum records related to its defined benefit plan:· Fair value of plan assets- P10,000,000· Benefit obligation- P12,000,000 Other relevant information relating to the plan for 2021 follows:· Current service cost- P2,000,000· Past service cost- P1,300,000· Actual return on plan assets- P1,500,000· Actuarial gain on benefit obligation- P400,000· Actuarial gain on plan assets- P500,000· Present value of benefits settled- P900,000· Settlement price- P800,000· Contribution to the plan- P3,100,000· Discount rate- 12% How much is the employee benefit expense taken to profit or loss during 2021?
Hawkins Corporation has the following balances at December 31, 2020. Projected benefit obligation $2,600,000 Plan assets at fair value 2,000,000 Accumulated OCI (PSC) 1,100,000 How should these balances be reported on Hawkins' balance sheet at December 31, 2020?
An entity’s defined benefit plan has the following information: 12/31/19 12/31/20 Fair value of plan assets P10 million P12 million Defined benefit obligation 8 million 9 million Discount rate 10% 10% Present value of available future refunds and reduction in future contributions 1.6 million 2 million In relation to the asset ceiling, the amount that the entity would recognize in other comprehensive income for the year 2020 is
On January 1, 2021, Period Company provided the following information: Fair value of plan assets 13,000,000Projected benefit obligation (10,000,000)Prepaid/Accrued Benefit Cost 3,000,000The entity revealed the following transactions affecting the plan for the current year:Current service cost 2,500,000Past service cost – remaining vesting period of covered employees is 3 years 1,200,000Contribution to the plan 3,000,000Benefits paid to retirees 3,500,000Actual return on plan assets 1,500,000Decrease in projected benefit obligation due to change in actuarial assumptions 400,000Discount rate 10%Expected return on plan assets 12% w. What is the employee benefit expense for the current year?x. What is the net remeasurement gain for the current year?y. What is the projected benefit obligation on December 31, 2021?z. What amount should be reported as accrued or prepaid benefit cost on December 31, 2021?
You have been provided with the following information related to the year 2020. The company is a public company and therefore is using IFRS to report. Defined benefit obligation, Jan 1 $395,000 Fair value of plan assets, Jan 1 360,000 Current service cost 302,000 Interest (discount) rate 11% Expected & actual return on plan assets 10% Past service cost (as of Jan 1) 25,600 Actuarial loss 14,600 Contributions to plan 280,000 Remeasurement loss on plan assets 11,600 Payments to retirees 280,000 Required: a) Calculate the pension expense to be reported on the income statement for 2020. b) Calculate the amount to be shown as OCI for 2020. Pension Plans c) Calculate the fair value of the plan assets at December 31, 2020. d) Prepare the journal entries to reflect the accounting for the company's pension plan for the year ending December 31, 2020. e) The Company is also curious as to what the differences in recognition of defined benefit plans with benefits that vest or accumulate under…
Information on an entity's defined benefit plan are shown below Return on plan asset 240,000 Fair value of plan asset, Jan 1, 2020 2,000,000 Benefits paid to retirees 600,000 Settlement gain on early retirement 100,000 Contributions to the fund 900,000 What is the balance of the Fair value of plan asset on December 31, 2020?
Information on Complicated Company's defined benefit plan is as follows: Fair value of plan assets, Jan. 1 - P480,000; Return on plan assets (Actual rate of return for the period) - 10%; Contributions to the retirement fund during the year - P800,000; Benefits paid to retirees - P200,000. How much is the balance of the fair value of plan assets as of year-end?
Fed Inc. had the following balances relating to the defined benefit plan on December 31, 2019: Fair value of plan assets 37,000,000 Defined benefit plan 33,000,000 Asset ceiling 2,500,000 What is the prepaid/accrued benefit cost on December 31, 2019? 0 1,500,000 2,500,000 4,000,000 answer not given
What is the fair value of plan assets (FVPA) on December 31, 2019? 7,250,000 8,200,000 8,850,000 9,800,000 answer not given