EBK INTERMEDIATE ACCOUNTING
3rd Edition
ISBN: 9780136946465
Author: SANNELLA
Publisher: VST
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Chapter 19, Problem 19.13E
a.
To determine
The value of total pension cost for the year.
b.
To determine
The value of closing balance of plan assets and PBO and indicate the funded status of the plan.
c.
To determine
The reconciliation of the closing balance in accumulated other comprehensive income of current year.
d.
To determine
To prepare: The
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Pension data for Barry Financial Services Incorporated include the following:
Discount rate, 7%
Expected return on plan assets, 12%
Actual return on plan assets, 11%
Service cost, 2024
January 1, 2024:
Projected benefit obligation
Accumulated benefit obligation
Plan assets (fair value)
Prior service cost- AOCI (2024 amortization, $50)
Net gain- AOCI (2024 amortization, $12)
There were no changes in actuarial assumptions.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
December 31, 2024:
Cash contributions to pension fund, December 31, 2024
Benefit payments to retirees, December 31, 2024
Required:
1. Determine pension expense for 2024.
2. Prepare the journal entries to record (a) pension expense, (b) gains and losses (if any), (c) funding, and (d) retiree benefits for 2024.
Pension expense
($ in thousands)
$
$ 480
0.0
3,150
2,850
3,250
410
500
Determine pension expense for 2024.
Note: Amounts to be deducted should be indicated with a minus sign.…
The following information relates to the defined benefit pension plan of Nelson, Inc.
Projected benefit obligation
Fair value of plan assets
Accumulated OCI-net actuarial gain
Settlement rate (for year)
Expected rate of return (for year)
The interest cost for 2020 is
$158,640
$211,520
12/31/19
2,644,000
3,118,000
432,000
O $240,120
O $280,140
O None of the above
6%
8%
12/31/20
4,002,000
3,328,000
480,000
For 2020, Nelson estimates that the average remaining service life of its current employees is 8 years. Nelson's contribution to the plan was
$364,000 in 2020 and benefits paid to retirees were $276,000,
6%
7%
The following information is related to the defined benefit pension plan of Havana for the year:
Service cost
Contributions to pension plan
Benefits paid to retirees
Plan assets (fair value), January 1
Plan assets (fair value), December 31
Actual return on plan assets
PBO, January 1
PBO, December 31
Discount rate
Long-term expected return on plan assets
$ 65,000
117,000
156,000
643,000
760,000
156,000
915,000
915,500
3:09
10%
9%
Assuming no other relevant data exist, what is the pension expense for the year?
Multiple Choice
$96,630.
$156,500.
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Chapter 19 Solutions
EBK INTERMEDIATE ACCOUNTING
Ch. 19 - What is the allocation period used to expense...Ch. 19 - How do companies account for stock-based...Ch. 19 - Do companies with equity-based compensation plans...Ch. 19 - When accounting for employee stock options, will a...Ch. 19 - Prob. 19.5QCh. 19 - Prob. 19.6QCh. 19 - Prob. 19.7QCh. 19 - Prob. 19.8QCh. 19 - Prob. 19.9QCh. 19 - Prob. 19.10Q
Ch. 19 - Prob. 19.1MCCh. 19 - Prob. 19.2MCCh. 19 - Prob. 19.3MCCh. 19 - Prob. 19.4MCCh. 19 - Prob. 19.5MCCh. 19 - Prob. 19.6MCCh. 19 - Prob. 19.7MCCh. 19 - Prob. 19.8MCCh. 19 - Prob. 19.1BECh. 19 - Prob. 19.2BECh. 19 - Prob. 19.3BECh. 19 - Prob. 19.4BECh. 19 - Prob. 19.5BECh. 19 - Prob. 19.6BECh. 19 - Employee Stock Options, Liability-Classified...Ch. 19 - Prob. 19.8BECh. 19 - Prob. 19.9BECh. 19 - Prob. 19.10BECh. 19 - Prob. 19.11BECh. 19 - Prob. 19.12BECh. 19 - Prob. 19.13BECh. 19 - Prob. 19.14BECh. 19 - Prob. 19.15BECh. 19 - Prob. 19.16BECh. 19 - Prob. 19.17BECh. 19 - Prob. 19.18BECh. 19 - Prob. 19.19BECh. 19 - Prob. 19.20BECh. 19 - Prob. 19.21BECh. 19 - Prob. 19.22BECh. 19 - Prob. 19.23BECh. 19 - Prob. 19.24BECh. 19 - Prob. 19.25BECh. 19 - Prob. 19.26BECh. 19 - Prob. 19.27BECh. 19 - Prob. 19.28BECh. 19 - Prob. 19.1ECh. 19 - Prob. 19.2ECh. 19 - Employee Stock Options. Equity-Classified Awards....Ch. 19 - Prob. 19.4ECh. 19 - Prob. 19.5ECh. 19 - Prob. 19.6ECh. 19 - Prob. 19.7ECh. 19 - Prob. 19.8ECh. 19 - Prob. 19.9ECh. 19 - Prob. 19.10ECh. 19 - Prob. 19.11ECh. 19 - Prob. 19.12ECh. 19 - Prob. 19.13ECh. 19 - Prob. 19.14ECh. 19 - Prob. 19.15ECh. 19 - Prob. 19.16ECh. 19 - Prob. 19.1PCh. 19 - Prob. 19.2PCh. 19 - Prob. 19.3PCh. 19 - Prob. 19.4PCh. 19 - Prob. 19.5PCh. 19 - Prob. 19.6PCh. 19 - Prob. 19.7PCh. 19 - Prob. 19.8PCh. 19 - Prob. 19.9PCh. 19 - Prob. 19.10PCh. 19 - Prob. 19.11PCh. 19 - Prob. 19.12PCh. 19 - Prob. 1JCCh. 19 - Prob. 2FSCCh. 19 - Prob. 1SSCCh. 19 - Prob. 2SSCCh. 19 - Basis for Conclusions Case 1: Are Employee Stock...Ch. 19 - Prob. 2BCC
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