Pharoah Corporation applies ASPE and sponsors a defined benefit pension plan. The following pension plan information is available for 2023 and 2024: Plan assets (fair value). December 31 Defined benefit obligation, January 1 Net defined benefit liability (asset). January 1 Current service cost Actual return on plan assets Funding of current service cost Funding of past service costs Benefits paid Interest/discount rate (a) 2023 $512,000 608,000 246,900 53,980 24,600 58,000 83,000 Calculate defined benefit expense for 2023 and 2024. Defined benefit expense, 2023 $ Defined benefit expense, 2024 $ ? 9% 2024 $642,000 702,000 The pension fund paid out benefits in each year. There were no actuarial gains or losses incurred on the DBO in the two-year period. ? 86,000 46.600 86,000 55,000 ? 9%
Q: The Sirap Co. leased equipment from the Xylo co. with a fair market value of $200,000. The lease…
A: A lease is a contract entered into between two parties, the lessor and the lessee, in which the…
Q: Gamet Corporation is preparing its balanced scorecard for the past quarter. The balanced scorecard…
A: A balanced scorecard is a tool that shows all the objectives in a table format. The scorecard…
Q: Prevost Chemicals manufactures an industrial solvent at its only processing plant. A liquid chemical…
A: Partial chemical productivity = Output (gallons) / Input (gallons)Partial labor productivity =…
Q: The balance sheet of Indian River Electronics Corporation as December 31, 2020, included 13% bonds…
A: The primary components that offer answers to these and other problems are journal entries.…
Q: You are a research analyst for Bedrock Capital Management and are considering investing in Evergreen…
A: Free cash flow is the net earnings plus the depreciation as cashflow considers only cash dealt items…
Q: Nu Corp. agreed to give Rand Co. a machine in full settlement of a note payable to Rand. The…
A: Note payable is one of the liability being incurred in business. If Carrying value of liability for…
Q: below, prepare IN GOOD ORM the In Statement and Balance Sheet for the month ended November 30, 2022.
A: The income statement is a financial statement which shows the net profit of the business for a…
Q: QUESTION 3: Amtrak Inc., produces and sells a single product. The following costs relate to its…
A: A profit and loss statement may be prepared in the marginal format or traditional format. The…
Q: Break-even sales Currently, the unit selling price of a product is $1,000, the unit variable cost…
A: The contribution margin is calculated as the difference between the sales and variable costs. The…
Q: On December 1, 2022, Coronado Company had the account balances shown below. Cash Accounts Receivable…
A: The Last in, First Out (LIFO) technique of inventory costing operates under the assumption that…
Q: Sunderson Products, Inc. has received a special order for 1,000 units of a sport-fighting kite. The…
A: Incremental Analysis :— This analysis shows the comparison between two different alternatives. A…
Q: Schiffer Corporation manufactures agricultural machinery. At a recent staff meeting, the following…
A: The difference between the expected amount and the actual amount is known as variance in accounting.…
Q: Cane Company manufactures two products called Alpha and Beta that sell for $190 and $155,…
A: Contribution marginIn cost accounting and managerial accounting, Contribution margin shows how much…
Q: Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur…
A: Cash Collection Budget :— This budget is prepared to estimate the collection of sales from customers…
Q: Required Information [The following information applies to the questions displayed below.] Bethany…
A: Amortization refers to the process of declining the value of intangible assets or capitalized…
Q: On November 30, Brown Sugar Plc has the below information related to cheques and cash: The bank…
A: Lets understand the basics.Bank reconciliation: It is a statement drawn up by the business to verify…
Q: Applying New Lease Accounting Standards for Operating Leases On January 1 of the current year, CCH…
A: Lease accounting:Generally lease accounting is a process organizations uses to record the financial…
Q: In May 2022, the budget committee of Concord Stores assembles the following data in preparation of…
A: Income statement is a financial statement that shows profitability, total revenue and total…
Q: Hedging Exposed Liability Position with Adjusting Entries On December 1, 2017, Sizzler Foods, a U.S.…
A: Adjusting entries are made after every accounting period, which is an important part of the…
Q: Investors expect that Aviation Aircraft Parts, will pay a dividend of $2.00 in the coming year,…
A: Intrinsic value per share describes the true value of the asset by adding the present value of all…
Q: Differential Analysis In each of four independent cases, the amount of differential revenue or…
A: Differential analysis also known as incremental analysis. It is a management technique which helps…
Q: Crosby Company owns a chain of hardware stores throughout the state. The company uses a periodic…
A: Inventory includes all the items, merchandise, and raw materials that are used by the business…
Q: ! Required information [The following information applies to the questions displayed below.] On June…
A: The stock split refers to the increasing the existing number of common shares. The stock split…
Q: The following data pertain to Colgate-Palmolive's liquid filling line during the first 10 months of…
A: The direct labor variance examines the company's labor price effectiveness in addition to its labor…
Q: The management of Kunkel Company is considering the purchase of a $20,000 machine that would reduce…
A: Net present valueNet present value is the most important concept of finance. It is used to evaluate…
Q: For utilities for factory premises- why would this not be a product cost
A: Direct materials : These are the raw materials that are directly identifiable and used in the…
Q: The following additional information is available about flight 482: a. Members of the flight crew…
A: An expenditure that won't be incurred if a specific activity is not carried out is called an…
Q: Which of these is not part of the historical cost of an asset? O training costs sales tax on…
A: Historical cost in accounting encompasses the original cost incurred to acquire an asset, which…
Q: Inventory The following information for Tuell Company is available: Cost Net realizable value Net…
A: Under US GAAP, the LIFO technique uses the lower cost or market, whereas the other methods use the…
Q: Del Gato Clinic's cash account shows an $15,253 debit balance and its bank statement shows $14,055…
A: BANK RECONCILIATION STATEMENTA bank reconciliation statement is a financial document that reconciles…
Q: Exercise 11-29 (Algo) Cost Allocation: Step Method (LO 11-1) Woodstock Binding has two service…
A: Direct costs are the expenses that are directly used for the production of goods and services for…
Q: Accrued Wages Natalie's Bakery pays its 20 hourly employees every Friday. Each of Natalie's…
A: Outstanding wages refer to the unpaid or unsettled wages that a company owes to its employees at a…
Q: Based on the following transactions, complete the table shown below. a. A shareholder paid Southgate…
A: Accounting equation is the one which shows that the assets in the books are equal to the sum of…
Q: PXG is a golf company that manufactures high-end irons. The company currently pays an outside…
A: Differential analysis, another name for incremental analysis, is an accounting method that looks at…
Q: Westerville Company reported the following results from last year's operations: Sales Variable…
A: The formula of turnover related to the investment reflects the times of sales earned with respect to…
Q: Mussatto Corporation produces snowboards. The following per unit cost information is available:…
A: Target Selling Price = Total unit cost+(Markup percentage × Total unit cost)
Q: Calvin reviewed his canceled checks and receipts this year (2023) for charitable contributions,…
A: Donations to nonprofit organisations are known as charitable contributions. Money, noncash objects,…
Q: During 2020, Joan Matel is a resident of Ontario, Canada and has calculated her Taxable Income to be…
A: The average tax rate represents the average tax rate applicable. The tax liability is determined by…
Q: Use the Excel Pareto template to investigate the quality losses in a paper mill shown below.…
A: Pareto diagram is a bar graph created in decreasing order. The vertical side of the chart reflects…
Q: Following are the issuances of stock transactions. 1. A corporation issued 10,000 shares of $20 par…
A: Journal entry records the accounting transactions of a business in a journal book. All the business…
Q: achieve a profit of P6 600 for the period
A: To calculate the number of units to be produced and sold to achieve a profit of P6 600 for the…
Q: Analyzing and Interpreting Pension Disclosures DowDuPoint's 10-K report has the following…
A: A pension plan is a category of investment plan designed to assist people in saving for their…
Q: e final answer?
A: The holding period for cryptocurrency is important for determining the tax rate. Short-term capital…
Q: Crane Dental Clinic is a medium-sized dental service specializing in family dental care. The clinic…
A: The overhead cost is a cost that is allocated to the product or service at the time of production.…
Q: On January 1, 2019, when its $30 par value common stock was selling for $80 per share, Swifty Corp.…
A: Journal entry is an art of recording, summarizing and classifying business transactions into…
Q: Imperial Jewelers manufactures and sells a gold bracelet for $403.00. The company's accounting…
A: The objective of the question is to determine the financial advantage or disadvantage of accepting a…
Q: Steven, a cash basis si
A: A cash basis taxpayer reports income when it is actually received, and reports expenses when they…
Q: The Sirap Co had sales for the year at $150000. Only $105000 was collected in cash, The remaining…
A: A journal entry is made to record the financial transactions in the books of accounts.There are 2…
Q: Based on the following information calculate Mary's income taxes. Her income tax rate is 10%: Earned…
A: Income tax refers to the charge levied by the government on the income of individuals and…
Q: AMP Corporation (calendar-year-end) has 2023 taxable income of $1,900,000 for purposes of computing…
A: It is the amount of reuction in the value of a tangible fixed asset due to tear and wear,…
Step by step
Solved in 3 steps
- Cullumber 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 $91,100 103,300 9,400 65,100 40,500 650,700 694,300 151,900 10%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%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…
- Sandhill Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2025, the following balances relate to this plan. Plan assets Projected benefit obligation Pension asset/lability Accumulated OCI (PSC) (a) As a result of the operation of the plan during 2025, the following additional data are provided by the actuary. Service cost Settlement rate, 9% Actual return on plan assets Amortization of prior service cost Expected returson plan assets Unexpected loss from change in projected benefit obligation due to change in actuarial predictions Contributions Benentspaid retirees items Balance, Jan 1, 2025 Service cost $496,400 610,800 interest cost 114400 Actual return 98,000 Dr. Unexpected gain Using the data above, compute pension expense for Sandhill. for the year 2025 by preparing a pension worksheet. (Enter all amounts as positive.) $90.900 54,700 18.300 51.600 76.600 103.700 85,200 Annual Pension Expense C Cath SUPPORTSplish Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2020 and 2021. Plan assets (fair value), December 31 Projected benefit obligation, January 1 Pension asset/liability, January 1 Prior service cost, January 1 Service cost Actual and expected return on plan assets Amortization of prior service cost Contributions (funding) Accumulated benefit obligation, December 31 Interest/settlement rate 2020 $712,980 714,000 142,800 Cr. 255,000 61,200 24,480 10,200 117,300 510,000 8% 2021 $865,980 816,000 ? 244,800 91,800 30,600 12,240 122,400 561,000 8 %Sunland 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. +A Pension expense for 2025 $ $91,400 102,900 9,600 64,900 40,600 632,300 686,100 147,300 11%
- The following information is available for WJB Corporation's defined benefit pension plan: Defined benefit obligation, opening balance, accounting basis Fair value of plan assets Current service cost Discount rate Actual return earned on plan assets Contributions (funding) Benefits paid to retirees (a) 2023 2024 Your answer is partially correct. 2025 Asset/Liability Liability Liability 2023 Liability 175,000 165,000 Amount 35,000 7% 8% 44,000 22,200 2024 ? ? $47,250 7% 6% 44,000 On January 1, 2023, WJB amended its pension plan, resulting in past service costs with a present value of $78,400. 25,900 2025 ? Calculate the pension plan's surplus or deficit and the pension liability or asset reported on the December 31, 2023, 2024, and 2025 statements of financial position assuming that WJB accounts for its pension plan under ASPE. (Round answers to O decimal places, e.g. 5,275.) ? $52,500 7% 7% 44,000 30,300Wildhorse 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…Cullumber Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2025 and 2026. Plan assets (fair value), December 31 Projected benefit obligation, January 1 Pension asset/liability, January 1 Prior service cost, January 1 Service cost Actual and expected return on plan assets Amortization of prior service cost Contributions (funding) Accumulated benefit obligation, December 31 Interest/settlement rate No benefits were paid in 2025 or 2026. (a) Compute pension expense for 2025 and 2026. Pension expense for 2025 Pension expense for 2026 $ $ 2025 $873,750 875,000 175,000 Cr. 312,500 75,000 30,000 12,500 143,750 625,000 9% 2026 $1,061,250 1,000,000 ? 300,000 112,500 37,500 15,000 150,000 687,500 9%
- Sandhill Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2025 and 2026. Projected benefit obligation, January 1 Plan assets (fair value and market-related value), January 1 Pension asset/liability, January 1 Prior service cost, January 1 Service cost Settlement rate Expected rate of return Actual return on plan assets Amortization of prior service cost Annual contributions Benefits paid retirees Increase in projected benefit obligation due to changes in actuarial assumptions Accumulated benefit obligation at December 31 Average service life of all employees Vested benefit obligation at Decem -31 (a1) 2025 Amortization of the loss $ $596,000 411,600 184,400 Cr. 161,400 40,300 10% 10% 35,800 69,500 97,300 31,200 87,100 720,200 Calculate the amortization of the loss (2026) using the corridor approach. 2026 $58,800 10% 10% 61,100 50,500 80,500 53,900 0 792,000 20 years 463,6001. Compute 2022 net periodic pension expense. The 2022 records of MPS Company provided the following data related to its noncontributory, defined benefit pension plan (amounts in PO00s): a. Accumulated benefit obligation (report of actuary) Beginning balance P3,000 Service cost 1,200 Interest cost 240 Pension benefits paid Ending balance (400) P4,040 Discount rate used by actuary, 8% b. Plan assets at fair value (report of trustee): Beginning balance Actual return on plan assets Contributions P2,400 168 1,016 (400) Pension benefits paid Ending balance Р3,192 Expected long-term rate of return of plan assets, 7% c. January 1, 2022, balance of unrecognized prior service cost, gains and losses, and transaction cost, zero.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?