Intermediate Accounting (2nd Edition)
Intermediate Accounting (2nd Edition)
2nd Edition
ISBN: 9780134730370
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Chapter 19, Problem 19.6P

a.

To determine

The value of total pension cost for the year.

Given information:

Fair value of plan assets at the beginning is $8,010.

Value of PBO at the beginning is $9,133.

Service cost is $1,827.

Settlement rate is 8%.

Expected rate on plan assets is 4%.

Actual return on plan assets is $570.

Contribution for the year is $1,060.

Benefit paid for the year is $900.

AOCI related to prior service cost at the beginning is $2,020.

Amortization of prior service cost is $670.

Actuarial gain is $3,012.

Average remaining service life of the employee base is 5 years

b.

To determine

The value of closing balance of plan assets and PBO.

Given information:

Fair value of plan assets at the beginning is $8,010.

Value of PBO at the beginning is $9,133.

Service cost is $1,827.

Settlement rate is 8%.

Expected rate on plan assets is 4%.

Actual return on plan assets is $570.

Contribution for the year is $1,060.

Benefit paid for the year is $900.

AOCI related to prior service cost at the beginning is $2,020.

Amortization of prior service cost is $670.

Actuarial gain is $3,012.

Average remaining service life of the employee base is 5 years

c.

To determine

The value of the closing balance in accumulated other comprehensive income of current year.

d.

To determine

To prepare: The journal entry to record current year pension cost.

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Chapter 19 Solutions

Intermediate Accounting (2nd Edition)

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