INTERMEDIATE ACCT.CUSTOM W/CONNECT
10th Edition
ISBN: 9781307690804
Author: SPICELAND
Publisher: MCG/CREATE
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Chapter 17, Problem 17.8BE
To determine
Pension plan: This is the plan devised by corporations to pay the employees an income after their retirement, in the form of pension.
Funded status: The net difference of the total of projected benefit obligation (PBO) and pension plan assets are referred to as funded status. If the balance of PBO is more than plan assets, the difference is referred to as underfunded status, and reported as net pension liability on the
To indicate: The amount reported as net pension liability reported by J Foods
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Question 19
Tyson, Inc sponsors a defined-benefit pension plan. The following data relates to the operation of the plan for the year 2021.
Service cost
$345.000
330,000
270.000
Plan contributions
Actual return on plan assets
Projected benefit obligation January 1
Fair value of plan assets, January 1
3,600,000
2,400,000
The expected return on plan assets and the settlement rate were both 10%. The amount of pension expense reported for 2021 is:
OA$705,000
OR$465,000
Oc$435.000
OD$345.000
Question 21
Sage Company provides the following selected information related to its defined benefit pension plan for 2020.
Pension asset/liability (January 1)
$25,600
Cr.
Accumulated benefit obligation (December 31)
400,600
Actual and expected return on plan assets
10,400
Contributions (funding) in 2020
148,800
Fair value of plan assets (December 31)
796,000
Settlement rate
10
%
Projected benefit obligation (January 1)
698,500
Service cost
79,600
(b)
New attempt is in progress. Some of the new entries may impact the last attempt grading.
Your answer is partially correct.
Indicate the pension-related amounts that would be reported in the company’s income statement and balance sheet for 2020.
Sage CompanyIncome Statement (Partial)…
Question 21
Sage Company provides the following selected information related to its defined benefit pension plan for 2020.
Pension asset/liability (January 1)
$25,600
Cr.
Accumulated benefit obligation (December 31)
400,600
Actual and expected return on plan assets
10,400
Contributions (funding) in 2020
148,800
Fair value of plan assets (December 31)
796,000
Settlement rate
10
%
Projected benefit obligation (January 1)
698,500
Service cost
79,600
(b)
Indicate the pension-related amounts that would be reported in the company’s income statement and balance sheet for 2020.
Sage CompanyIncome Statement (Partial)
$…
Chapter 17 Solutions
INTERMEDIATE ACCT.CUSTOM W/CONNECT
Ch. 17 - Prob. 17.1QCh. 17 - Prob. 17.2QCh. 17 - Prob. 17.3QCh. 17 - What is the vested benefit obligation?Ch. 17 - Prob. 17.5QCh. 17 - Prob. 17.6QCh. 17 - Name three events that might change the balance of...Ch. 17 - Prob. 17.8QCh. 17 - Prob. 17.9QCh. 17 - Prob. 17.10Q
Ch. 17 - The return on plan assets is the increase in plan...Ch. 17 - Define prior service cost. How is it reported in...Ch. 17 - Prob. 17.13QCh. 17 - Is a companys PBO reported in the balance sheet?...Ch. 17 - What two components of pension expense may be...Ch. 17 - Prob. 17.16QCh. 17 - Evaluate this statement: The excess of the actual...Ch. 17 - Prob. 17.18QCh. 17 - TFC Inc. revises its estimate of future salary...Ch. 17 - Prob. 17.20QCh. 17 - Prob. 17.21QCh. 17 - Prob. 17.22QCh. 17 - The components of postretirement benefit expense...Ch. 17 - The EPBO for Branch Industries at the end of 2018...Ch. 17 - Prob. 17.25QCh. 17 - Prob. 17.26QCh. 17 - Prob. 17.1BECh. 17 - Prob. 17.2BECh. 17 - Prob. 17.3BECh. 17 - Prob. 17.4BECh. 17 - Prob. 17.5BECh. 17 - Prob. 17.6BECh. 17 - Prob. 17.7BECh. 17 - Prob. 17.8BECh. 17 - Prob. 17.9BECh. 17 - Prob. 17.10BECh. 17 - Net gain LO176 The projected benefit obligation...Ch. 17 - Prob. 17.12BECh. 17 - Prob. 17.13BECh. 17 - Postretirement benefits; determine the APBO and...Ch. 17 - Prob. 17.1ECh. 17 - Prob. 17.3ECh. 17 - Prob. 17.4ECh. 17 - Prob. 17.5ECh. 17 - Prob. 17.6ECh. 17 - Prob. 17.7ECh. 17 - Prob. 17.8ECh. 17 - Prob. 17.9ECh. 17 - Prob. 17.14ECh. 17 - Prob. 17.17ECh. 17 - Prob. 17.23ECh. 17 - Prob. 17.32ECh. 17 - Prob. 17.33ECh. 17 - Prob. 17.1DMPCh. 17 - Prob. 17.2DMPCh. 17 - Prob. 17.3DMPCh. 17 - Prob. 17.5DMPCh. 17 - Prob. 17.6DMPCh. 17 - Prob. 17.8DMPCh. 17 - Prob. 17.9DMPCh. 17 - Prob. 17.11DMPCh. 17 - Prob. 1CCTCCh. 17 - Prob. 2CCTC
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- Question 9 Oriole Company provides the following information about its defined benefit pension plan for the year 2020. Service cost $91,700 Contribution to the plan 104,300 Prior service cost amortization 10,800 Actual and expected return on plan assets 65,300 Benefits paid 39,700 Plan assets at January 1, 2020 633,400 Projected benefit obligation at January 1, 2020 711,600 Accumulated OCI (PSC) at January 1, 2020 148,000 Interest/discount (settlement) rate 10 % General Journal Entries Memo Record Items AnnualPension Expense Cash OCIPrior Service Cost Pension Asset/Liability Projected BenefitObligation PlanAssets (b) The parts of this question must be completed in order. This part will be available when you complete the part above.arrow_forwardQuestion 20 ## Bonita Company sponsors a defined benefit pension plan. The corporation’s actuary provides the following information about the plan. January 1, 2020 December 31, 2020 Vested benefit obligation $1,520 $1,930 Accumulated benefit obligation 1,930 2,700 Projected benefit obligation 2,510 3,360 Plan assets (fair value) 1,730 2,670 Settlement rate and expected rate of return 10% Pension asset/liability 780 ? Service cost for the year 2020 400 Contributions (funding in 2020) 690 Benefits paid in 2020 200 (a3) Indicate the pension amounts reported in the balance sheet. Bonita Company’sBalance Sheet (Partial) $…arrow_forwardProblem 17-9 (Static) Determine pension expense; PBO; plan assets; net pension asset or liability; journal entries [LO17-3, 17-4, 17-5, 17-6 ,17-7 ,17-8] Check my work U.S. Metallurgical Inc. reported the following balances in its financial statements and disclosure notes at December 31, 2020. Plan assets $400,000 320,000 Projected benefit obligation U.S.M's actuary determined that 2021 service cost is $60,000. Both the expected and actual rate of return on plan assets are 9%. The interest (discount) rate is 5%. U.S.M. contributed $120,000 to the pension fund at the end of 2021, and retirees were paid $44,000 from plan assets. (Enter your answers in thousands (L.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…arrow_forward
- Question 20### Bonita Company sponsors a defined benefit pension plan. The corporation’s actuary provides the following information about the plan. January 1, 2020 December 31, 2020 Vested benefit obligation $1,520 $1,930 Accumulated benefit obligation 1,930 2,700 Projected benefit obligation 2,510 3,360 Plan assets (fair value) 1,730 2,670 Settlement rate and expected rate of return 10% Pension asset/liability 780 ? Service cost for the year 2020 400 Contributions (funding in 2020) 690 Benefits paid in 2020 200 (a3) New attempt is in progress. Some of the new entries may impact the last attempt grading. Your answer is partially correct. Indicate the pension amounts reported in the balance sheet. Bonita Company’sBalance Sheet (Partial)…arrow_forwardQuestion 19 of 20 View Policies The settlement rate is 9%. Other data related to the pension plan for 2026 are: Benefits paid Actual return on plan assets Amortization of net gain $2850000 O $2777000. O $2850000. O $3180000. O $2955000. 2350000 Amortization of prior service costs due to increase in benefits Contributions The fair value of plan assets at December 31, 2026 is $235000 74000 435000 160000 330000 17000arrow_forwardQuestion 10-pensione Selected Information about the pension plan of Orange Co. is as follows: 31/12/2019 31/12/2020 Defined benefit obligation Fair value of plan assets 5,100,000 4,850,000 4,800,500 4,800,000 Pension expense 1,500,010 1,780,000 Contribution 1,000,000 1,500,000 Discount rate (for year) 7% 6% Required (a) → Calculate the Pension Asset/ Liability at December 31, 2020. (b) - Prepare the entry for 2020 to record the pension expense and contribution.arrow_forward
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- Question 4 of 19 View Policies < Current Attempt in Progress The following information is related to the pension plan of Wildhorse, Inc. for 2021. Actual return on plan assets Amortization of net gain Amortization of prior service cost due to increase in benefits Expected return on plan assets Interest on projected benefit obligation Service cost Pension expense for 2021 is $3075000. O $2691000. O $2604000. O $3024000. $490000 210000 390000 541000 815000 2150000arrow_forwardQuestion 18 of 20 View Policies The settlement rate is 9%. Other data related to the pension plan for 2026 are: Benefits paid Actual return on plan assets Amortization of net gain $4100000 O $4469000. O $4548000. O $4544000. O $4781000. 3600000 Amortization of prior service costs due to increase in benefits Contributions $312000 112000 512000 237000 The balance of the projected benefit obligation at December 31, 2026 is 407000 31200arrow_forwardQuestion 8 of 20 View Policies Current Attempt in Progress On January 1, 2022, Wildhorse Co. has the following balances: Projected benefit obligation Fair value of plan assets The settlement rate is 10%. Other data related to the pension plan for 2022 are: Amortization of unrecognized prior service costs Benefits paid Actual return on plan assets Amortization of unrecognized net gain O $3091400. O $3109000. O $3521800. O $3131100. $2760000 2363000 $236300 77900 390700 141200 305000 The balance of the projected benefit obligation at December 31, 2022 is 27900arrow_forward
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