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Intermediate Accounting Plus Mylab Accounting With Pearson Etext -- Access Card Package (2nd Edition)
2nd Edition
ISBN: 9780134833101
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Question
Chapter 19, Problem 19.28BE
To determine
The value of pension asset or pension liability at the balance sheet date at the end of year.
Giveninformation:
PBO at the end of the year is $795,000.
Fair value of plan assets at the end of the year is $850,000.
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Students have asked these similar questions
Kingbird Company provides the following selected information related to its defined benefit pension plan for 2020.
Pension asset/liability (January 1)
Accumulated benefit obligation (December 31)
Actual and expected return on plan assets
Contributions (funding) in 2020
Fair value of plan assets (December 31)
Settlement rate
Projected benefit obligation (January 1)
Service cost
(a)
Your answer is correct.
Compute pension expense.
Pension expense for 2020 $
Account Titles and Explanation
Pension Expense
Pension Asset/Liability
$27,200 Cr.
403,300
11,000
150,600
794,200
Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2020.
Preparation of a pension worksheet is not required. Benefits paid in 2020 were $37,100. (Credit account titles
are automatically indented when amount is entered. Do not indent manually. If no entry is
required, select "No Entry" for the account titles and enter 0 for the amounts.)
Cash
10 %
696,900
79,420
138110…
The following facts apply to the pension plan of Blossom Inc. for the year 2020.
Plan assets, January 1, 2020
Projected benefit obligation, January 1, 2020
Settlement rate
Service cost
Contributions (funding)
Actual and expected return on plan assets
Benefits paid to retirees
Items
Balance, January 1, 2020
Service cost
Interest cost
Actual return
Contributions
Using the preceding data, compute pension expense for the year 2020. As part of your solution, prepare a pension worksheet that shows the journal entry for pension expense for 2020 and the year-end balances in the related pension accounts. (Enter all amounts as positive.)
Benefits
Journal entry, December 31
Balance, December 31, 2020
$
$487,400
$
487,400
8 %
40,300
26,600
47,000
31,800
Annual Pension
Expense
>
$
General Journal Entries
Cash
BLOSSOM INC.
Pension Worksheet-2020
$
Pension Asset/
Liability
<
$
Projected Benefit
Obligation
Memo Record
$
$
Plan
Assets
The following are made available for the defined benefit pension plan of Pores Corporation as
of December 31, 2019:
Fair value of Plan asset, Jan 1
Total actual return on plan asset
Payment made to retirees
Payment of pension benefit settled on active
employees
Contribution during the year
P3,000,000
?
600,000
400,000
500,000
6%
Discount rate
a. What is the fair value of plan asset as of December 31, 2019?
b. What amount of the total actual return on plan asset should be included in profit or
loss?
c. What amount of the total actual return on plan asset should be reported in other
comprehensive income?
Chapter 19 Solutions
Intermediate Accounting Plus Mylab Accounting With Pearson Etext -- Access Card Package (2nd Edition)
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. 19.12BECh. 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. 19.6ECh. 19 - Prob. 19.7ECh. 19 - Prob. 19.8ECh. 19 - Prob. 19.9ECh. 19 - Prob. 19.10ECh. 19 - Prob. 19.11ECh. 19 - Prob. 19.13ECh. 19 - Prob. 19.14ECh. 19 - Prob. 19.15ECh. 19 - Prob. 19.1PCh. 19 - Prob. 19.2PCh. 19 - Prob. 19.3PCh. 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. 1FSCCh. 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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