Connect Access Card for Financial Accounting
9th Edition
ISBN: 9781259738678
Author: Robert Libby, Patricia Libby, Frank Hodge Ch
Publisher: McGraw-Hill Education
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Question
Chapter S, Problem 9E
To determine
Journalize the entry to record contribution to pension fund.
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How do I go about calculating pension payouts to determine a company's financial obligation? Additional info is below:
Postretirement BenefitsPeyton Approved has revised its postretirement plan. It will now provide health insurance to retired employees. Management has requested that you report the short- and long-term financial implications of this. The company is currently employing 60, and actuaries estimate that the company has a pension liability of $107,041.70. The estimated cost of retired employees’ health insurance is $43,718.91. Prepare adjusting entries for the pension liability and the health insurance liability
$1,000,000
500,000
1,840,000
250,000
120,000
10%
Service cost
Actual return on plan assets
Annual contribution to the plan
Amortization of prior service cost
Benefits paid to retirees
Settlement rate
Expected rate of return on plĂĄn assets
8%
Balances at 12/31/2020 are:
Prior Service Cost
Projected Benefit Obligation
Plan Assets
1,250,000 Dr
8,000,000 Cr
5,500,000 Dr
Jablonski Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2017, the following balances related to this plan.
Check the below image for more details for this problem.
Instructions(a) Compute pension expense for Jablonski Corp. for the year 2017 by preparing a pension worksheet that shows the journal entry for pension expense.(b) Indicate the pension amounts reported in the financial statements.
Chapter S Solutions
Connect Access Card for Financial Accounting
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