During its first year of operations, a company granted employees vacation privileges and pension rights estimated at a cost of $24, 203 and $13,077. The vacations are expected to be taken in the next year, and the pension rights are expected to be paid in the future 5-30 years. What is the total cost of vacation pay and pension rights to be recognized in the first year? a. $13,077 b. $24, 203 c. $37, 280 d. $63,434
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- During its first year of operations, a company granted its employees vacation privileges and pension rights estimated at a cost of $25,288 and $16,715, respectively. The vacations are expected to be taken in the next year, and the pension rights are expected to be paid in the future 5-30 years. What is the total cost of vacation pay and pension rights to be recognized in the first year? a.$16,715 b.$25,288 c.$75,433 d.$42,003During its first year of operations, a company granted employees vacation privileges and pension rights estimated at a cost of $21,500 and $15,000. The vacations are expected to be taken in the next year and the pension rights are expected to be paid in the future 5-30 years. What is the total cost of vacation pay and pension rights to be recognized in the first year? Oa, $15,000 Ob. $36,500 Oc. $21,500 Od. $6,500Computing ABO, PBO Mallard Company sponsors a pension plan with the following pension benefit: Benefit paid at each year-end during retirement = (Number of years worked x Annual salary at retirement) +25 Employee Josie began work with the company and received credit for service as of January 1 of Year 1. Josie is expected to work a total of 30 years with an annual salary at retirement of $100,000. She is expected to draw 10 years of retirement benefits. The discount rate is 10%. Note: Carry all decimals in calculations; round the final answer to the nearest dollar. a. Compute the PBO on December 31 of Year 10, if Josie's current salary is $30,000. b. Compute the ABO on December 31 of Year 10, if Josie's current salary is $30,000.
- Company A has established a defined benefit plan indicating a plan formula for annual benefit equal to 2% multiplied by the number of years in service multiplied by the final year’s salary. The annual benefit is payable at the end of each year. An employee was hired by the entity on January 1,2000 and expected to retire on December 31, 2044. The employee’s retirement is expected to span 21 years. The employee’s final salary at retirement is expected to be P800,000 and the appropriate discount rate is 8%. On January 1, 2020, the plan formula was amended by increasing the percentage from 2% to 3%. The amendment was made retroactive to consider past service years. Compute for the ff: 1)PBO, Jan 1, 2020 (before amendment), Jan 1, 2020 (after amendment), Dec. 31,2020, Dec. 31, 2021 and Dec. 31 2022 2)Past service cost, 2020, 2021 and 2022 3)Current service cost, 2020, 2021 and 2022 4)Interest expense, 2020, 2021 and 2022ABC put up a qualified retirement plan approved by the BIR. It appointed B Corp. to administer the plan, which called for the payment of P200,000 to cover the retirement of employees for past services rendered and a yearly contribution of P50,000. The following amounts were paid for the first three years of the plan's operation: Contribution for Services Past Years P 100,000 60,000 40,000 Current Years First year. Second year. Third year.. P 50,000 50,000 50,000 1. The pension expense for the first year is a. P 150,000 b. Р 15,000 с. Р 60,000 d. P 105,000 2. The pension expense for the second year is a. P110,000 b. P 11,000 с. Р 56,000 d. P 66,000 3. The pension expense for the third year is а. Р 90,000 b. Р 9,000 с. Р 54,000 d. P 70,000b. Adoptions and More drew on 8 annual notes totaling $250,000 to be paid upon completion of the office it is building. The company intends to pay $75,000 next year. What is that portion considered?
- SALLAT Household Furnishings & Appliances is a family-owned business. You are the management accountant of the entity and have been given the task of preparing the cash budget for the business for the quarter ending September 30, 2022. Your data collection has yielded the following: i) Extracts from the sales and purchases budgets are as follows: Cash Sales Cash Purchases Month Sales On Account Purchases On Account May June $75,000 $135,000 $480,000 $600,000 $390,000 $360,000 July August | September $86,800 $105,600 $112,500 $36,000 $61,700 $68,800 $77,250 $720,000 $640,000 $800,000 $450,000 $400,000 $500,000 ii) An analysis of the records shows that trade receivables (accounts receivable) for sales on account are settled according to the following credit pattern, in accordance with the credit terms 5/30, n90: 50% in the month of sale 35% in the first month following the sale 15% in the second month following the sale Accounts Payable are settled as follows, in accordance with the…At the end of Year 1. Carrot Company revised the pension benefit formula for its defined benefit pension plan to increase benefits earned in prior years. The actuarial present value of the increased benefits is $200, the average remaining service life of the employees affected by the change is 10 years, and Carrot will use the average remaining service life method for this change. Which of the following will be included in the journal entry to record prior service cost amortization in Year 2? O Debit to pension expense for $20 O Credit to pension expense for $20 O Credit to projected benefit obligation for $20 O Debit to prior service cost for $20The following information related to the Postretirement Benefits (health) for the Union Company on 12/31/2020: Expected postretirement Benefits Obligation (EPBO) $ 800,000, and the Accumulated Postretirement Benefits Obligation (APBO) is $400,000. Attribution period 20 years. Number of years employees worked to date 10 years. Interest rate 10%. Required: a. Calculate the EPBO at end of 2021. b. Calculate accumulated postretirement benefits (APBO) for 2021. c. Analyze the increase in 2021 APBO.
- ix) Wages and salaries are expected to be $2,304,000 per annum and will be paid monthly.x) In the month of August, furniture & fixtures, which cost $455,000, will be sold to anemployee at a loss of $20,000. Accumulated depreciation on the furniture & fixtures at thattime is expected to be $305,000. The employee will be allowed to pay a deposit equal to60% of the selling price in August with the balance settled in two equal amounts inSeptember & October.xi) As part of its investing activities, the management of Sallat Household Furnishings &Appliances is in the process of completing a major addition to the business property, whichis estimated to cost $1,200,000, and which is being funded by external borrowing. $420,000of the principal, along with interest of $14,200 is due to be paid on July 15, 2022.xii) The cash balance on September 30, 2022, is expected to be an overdraft of $147,500.plan for an employee. Annual payments under the pension Jessabel Company has established a defined benefit pension plan are equal to the employee's highest lifetime salary The employee is expected to retire in 5 years and the salary multiplied by 3% multiplied by number of years with the On December 31, 2020, the employee had worked for Jessabe Problem 17-10 (IAA) entity. Company for 15 years. The current salary is P500,000 increases are expected to average 4% per year during th period. The employee is expected to live for 6 years after retirine and will receive the first annual pension payment one yea after retirement. The discount rate is 12%. Future value of 1 at 4% for 5 periods PV of an ordinary annuity of 1 at 12% for 6 periods PV of 1 at 12% for 5 periods 1.217 4.111 0.567 What is the projected benefit obligation on December 31, 2020? a. 638,269, b. 225,000 c. 524,460 d. 608,5001. A lump sum benefit is payable on termination of service and equal to 1 per cent of final salary for each year of service. The salary in year 1 is P10,000 and is assumed to increase at 7 per cent (compound) each year. The discount rate used is 10 per cent per year. The entity does not fund its obligation to pay lump-sum benefits. The employee is expected to leave at the end of year 5. The change in year 2 in the net defined benefit liability that arises from the passage of time (interest cost) is Group of answer choices Nil P131 P98 P9 The increase in the present value of the defined benefit obligation resulting from employee service in year 2 (current service cost) is Group of answer choices P131 P98 P89 P196 The amount to be recognized as expense in the second year is Group of answer choices P98 P107 P131 P196