(a)Your answer is partially correct.Prepare the note disclosing the components of pension expense for the year 2020. (Enter amounts that reduce pensionexpense with either a negative sign preceding the number e.g. -45 or parenthesis e.g. (45).)Service CostInterest CostComponents of Pension ExpenseExpected Return on Plan AssetsPrior Service Cost Amortization :Pension ExpenseeTextbook and MediaSave for Later$$1000Attempts: 1 of 5 usedSubmit Answer Flint Enterprises provides the following information relative to its defined benefit pension plan.Balances or Values at December 31, 2020Projected benefit obligationAccumulated benefit obligationFair value of plan assetsAccumulated OCI (PSC)Accumulated OCI-Net loss (1/1/20 balance, 0)Pension liabilityOther pension plan data for 2020:Service costPrior service cost amortizationActual return on plan assetsExpected return on plan assetsInterest on January 1, 2020, projected benefit obligationContributions to planBenefits paid$2,743,7001,980,3002,290,800212,00045,800451,900$94,30042,200129,800175,600254,30092,700139,800

Accumulated other comprehensive income( OCI) is that income which includes unrealized gains and…

(a) Your answer is partially correct. Prepare the note disclosing the components of pension expense for the year 2020. (Enter amounts that reduce pension expense with either a negative sign preceding the number e.g. -45 or parenthesis e.g. (45).) Service Cost Interest Cost Components of Pension Expense Expected Return on Plan Assets + Prior Service Cost Amortization : Pension Expense eTextbook and Media $ Attempts: 1 of 5 used Submit Answer

(a) Your answer is partially correct. Prepare the note disclosing the components of pension expense for the year 2020. (Enter amounts that reduce pension expense with either a negative sign preceding the number e.g. -45 or parenthesis e.g. (45).) Service Cost Interest Cost Components of Pension Expense Expected Return on Plan Assets + Prior Service Cost Amortization : Pension Expense eTextbook and Media $ Attempts: 1 of 5 used Submit Answer

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 12E

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Wildhorse Company provides the following information about its defined benefit pension plan for the year 2020. Service cost Contribution to the plan Prior service cost amortization Actual and expected return on plan assets Benefits paid Plan assets at January 1, 2020 Projected benefit obligation at January 1, 2020 Accumulated OCI (PSC) at January 1, 2020 Interest/discount (settlement) rate Items Pension Experse Balance, January 1, 2020 91200 Service cost 61801 Interest cost T 62800 Actual return 9800 Amortization of PSC Contributions Benefits Journal entry for 2020 Accumulated OCI, Dec 31, 2019 Balance, Dec 31, 2020 eTextbook and Media List of Accounts $91,200 104,700 9,800 62,800 40,500 632,600 686,700 152,100 9% eTextbook and Media 100003 Dr. Dr. cr. Cash Debit 104700 Prepare the journal entry recording pension expense. (Credit account titles are automatically indented when amount is entered. Do na indent manually. If no entry is required, select "No Entry" for the account titles and…
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
Wildhorse Company provides the following information about its defined benefit pension plan for the year 2025. Service cost Contribution to the plan Prior service cost amortization Actual and expected return on plan assets Benefits paid Plan assets at January 1, 2025 Projected benefit obligation at January 1, 2025 Accumulated OCI (PSC) at January 1, 2025 Interest/discount (settlement) rate Compute the pension expense for the year 2025. Pension expense for 2025 $89,400 105,700 10,800 64,500 40,200 640,200 710,100 152,200 10%
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Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2024 (the end of Beale's fiscal year), the following pension-related data were available: Projected Benefit Obligation Balance, January 1, 2024. Service cost Interest cost, discount rate, 5 Gain due to changes in actuarial assumptions in 2024 Pension benefits paid Balance, December 31, 2024 Plan Assets Balance, January 1, 2024 Actual return on plan assets (Expected return on plan assets, $45) Cash contributions Pension benefits paid Balance, December 31, 2024 January 1, 2024, balances: Pension asset Prior service cost-AOCI (amortization $8 per year) Net gain-AOCI (any amortization over 15 years) ($ in millions) Balance, January 1, 2024 Service cost Interest cost, 5% Expected return on assets Adjust for: Loss on assets Amortization of: Prior service cost Net gain Gain on PBO Cash funding Retiree benefits Balance, December 31, 2024 $ ($ in millions) $ 500 40 PBO Required: Prepare a pension spreadsheet…
Pension data for Sterling Properties include the following: Service cost, 2021 Projected benefit obligation, January 1, 2021 Plan assets (fair value), January 1, 2021 Prior service cost-AOCI (2021 amortization, $8) Net loss-AOCI (2021 amortization, $1) Interest rate, 8% Expected return on plan assets, 12% Actual return on plan assets, 13% Service cost Interest cost Required: Determine pension expense for 2021. (Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.) Pension Expense Expected return on plan assets Amortization of prior service cost Amortization of net loss Pension expense $ ($ in thousands) $ 117 0 600 700 87 108
Vernhey Corporation, which follows ASPE, provides the following information about its defined benefit pension plan for the year 2020: Current service cost Contribution to the plan Past service cost, effective December 31, 2020 Actual return on plan assets Benefits paid Net defined benefit liability at January 1, 2020 Plan assets at January 1, 2020 Defined benefit obligation at January 1, 2020 Interest/discount rate on the DBO and plan assets $144,000 182,600 60,000 160,000 95,000 20,000 1,780,000 1,800,000 9% Instructions 1 Prepare a pension work sheet: insert the January 1, 2020 balances and show the December 31, 2020 balances. Indicate credit entries by parentheses, e g. (25,000). b) Prepare all journal entries. c) What is the amount of the plan's surplus/deficit at December 31, 2020?
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