Accounting For Governmental & Nonprofit Entities
18th Edition
ISBN: 9781259917059
Author: RECK, Jacqueline L., Lowensohn, Suzanne L., NEELY, Daniel G.
Publisher: Mcgraw-hill Education,
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Question
Chapter 8, Problem 18.9EP
To determine
Identify the correct option that is equal to the current year pension expenditure.
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The City of Columbus has approximately 2,000 employees. For the past three decades, the city has provided its employees with a defined benefit pension plan. The plan contract calls for specific payment amounts to be made to each retiree based on a set formula. Money is transferred periodi-cally to a pension trust fund where it is accumulated and invested so that eventual payments can be made.a. Describe how the city determines the amount (if any) of a net pension liability that should be reported within its government-wide financial statements.b. Describe how the city determines the amount (if any) of pension expense that should be reported within its government-wide financial statements.c. How is the pension reported in the fund financial statements for the governmental funds?
The City of Sweetwater maintains an Employees’ Retirement Fund, a single-employer defined benefit plan that provides annuity and disability benefits. The fund is financed by actuarially determined contributions from the city’s General Fund and by contributions from employees. Administration of the retirement fund is handled by General Fund employees, and the retirement fund does not bear any administrative expenses. The Statement of Fiduciary Net Position for the Employees’ Retirement Fund as of July 1, 2019, is shown here:
CITY OF SWEETWATER
Employees’ Retirement Fund
Statement of Fiduciary Net Position
As of July 1, 2019
Assets
Cash
$
137,000
Accrued Interest Receivable
57,800
Investments, at Fair Value:
Bonds
4,506,000
Common Stocks
1,307,000
Total Assets
6,007,800
Liabilities
Accounts Payable and Accrued Expenses
351,300
Fiduciary Net Position Restricted for Pensions
$
5,656,500
During the year ended…
Employer journal entry for Defined Benefit Pension
The city of Stewart has a single-employer defined benefit pension plan to provide retiree pension benefits to its Electric Utility Enterprise Fund employees. The plan is administered in a trust that meets the GASB requirements. The city of Stewart contributed $1,280,000 cash to the pension plan during the fiscal year ending December 31, 2022.Assume that the actuary for the city of Stewart’s Electric Utility Enterprise Fund measures its net pension liability on December 31, 2022, which is its fiscal year-end. The actuary provides the following additional information in its reporting package to the city of Stewart’s accounting department for its use in preparing the Electric Utility Enterprise Fund’s December 31, 2022 financial statements.
Actuarial Provided Account Information
Fiscal Year Ending
Fiscal Year Ending
December 31, 2021
December 31, 2022
Net pension liability
$4,880,000
$4,960,000
Deferred inflow of…
Chapter 8 Solutions
Accounting For Governmental & Nonprofit Entities
Ch. 8 - What are the criteria for determining if a...Ch. 8 - Prob. 2QCh. 8 - Identify the different types of trust funds and...Ch. 8 - Describe the basic activities conducted by a tax...Ch. 8 - Explain how the financial reporting of fiduciary...Ch. 8 - Prob. 6QCh. 8 - How are external investment pool activities...Ch. 8 - What is a private-purpose trust fund? There are...Ch. 8 - Prob. 9QCh. 8 - Prob. 10Q
Ch. 8 - What is OPEB and how is OPEB reported by...Ch. 8 - Prob. 12CCh. 8 - Prob. 13CCh. 8 - Prob. 14CCh. 8 - Prob. 15CCh. 8 - Prob. 17.1EPCh. 8 - Which of the following is not a fiduciary fund? a....Ch. 8 - Prob. 17.3EPCh. 8 - Fiduciary fund activities are not included in the...Ch. 8 - Prob. 17.5EPCh. 8 - Prob. 17.6EPCh. 8 - The city has installed sidewalks using special...Ch. 8 - Prob. 17.8EPCh. 8 - Fiduciary funds a. Are accounted for using the...Ch. 8 - Prob. 17.10EPCh. 8 - Prob. 17.11EPCh. 8 - An investment trust fund would report in the...Ch. 8 - Prob. 17.13EPCh. 8 - Which pension fund financial statement or schedule...Ch. 8 - Prob. 17.15EPCh. 8 - Prob. 18.1EPCh. 8 - Prob. 18.2EPCh. 8 - The county collects taxes on behalf of the county,...Ch. 8 - Prob. 18.4EPCh. 8 - Prob. 18.5EPCh. 8 - At the date of the creation of the investment...Ch. 8 - The city council of the City of Great Falls...Ch. 8 - The city council of the City of Great Falls...Ch. 8 - Prob. 18.9EPCh. 8 - Prob. 18.10EPCh. 8 - Tax Custodial Fund. (LO8-2) The county collector...Ch. 8 - Special Assessment Debt. (LO8-2) Residents of...Ch. 8 - Identification of Fiduciary Funds. (LO8-2, LO8-3,...Ch. 8 - Investment Trust Fund. (LO8-3) The Albertville...Ch. 8 - Pass-through Custodial Funds. (LO8-2) Evergreen...Ch. 8 - Fiduciary Financial Statements. (LO8-4) Ray County...Ch. 8 - Fiduciary Fund Financial Statements. (LO8-4)...Ch. 8 - Prob. 26EPCh. 8 - Prob. 27EP
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