On January 1, 2021, Grace Corp. created a special building fund by depositing a single sum of P300,000 with aTrust Company. The purpose of the fund is to provide resources to build another wing of a building that is expectedto be completed by the end of 2025. The company estimates a total expenditure of P1.5 million and completionby January 1, 2026.Grace Corp. plans to make annual deposit from December 31, 2021 to 2025 to accumulate the required P1.5million. The Trust Company will increase the fund each December 31 at an interest rate of 8%. Both the accountingperiod of the company and the fund end on December 31.Based on the above and the result of your audit, answer the following (Round off present and future valuefactors to four decimal places and final answer to the nearest peso):1. How much is the annual deposit to the fund?2. How much is the fund balance as of December 31, 2021?

Balance at the end which is required at the end of the specified period, the investor or company…

Answered: 1. How much is the annual deposit to…

Business

Accounting

1. How much is the annual deposit to the fund? 2. How much is the fund balance as of December 31, 2021?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2024: Prior service cost at January 1, 2024, from plan amendment at the beginning of 2022 (amortization: $4 million per year) Net loss-pensions at January 1, 2024 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate ($ in millions) Beginning of 2024 Service cost Interest cost, 8% Loss (gain) on PBO Less: Retiree benefits End of 2024 Beginning of 2025 Service cost PBO $ 300 48 Interest cost, 8% Loss (gain) on PBO Less: Retiree benefits End of 2025 24 (2) (20) $ 350 PBO $ 350 38 Beginning of 2024 Return on plan assets, 7.5% (10% expected) 28 5 (16) $ 405 Cash contributions Less: Retiree benefits End of 2024 Assume the following actuary and trustee reports indicating changes in the PBO and plan assets of Lakeside Cable during 2025: ($ in millions) Beginning of 2025 Return on plan assets, 15% (10% expected) $…
The net pension liability (PBO minus plan assets) is increased by: A. Service cost. B. Expected return on plan assets. C. Amortization of prior service cost. D. Cash contributions to plan assets.
What was the dollar amount of loss (gain) on plan assets that was recognized in OCI during 20X1? Prepare the journal entries to record pension expense, the contribution, and the OCI effects.
am. 11
2. Andrew deposit $2 into a fund at time 0. Money in this fund accumulates at an effective annual interest rate of i during the first 5 years, and at an effective annual interest rate of 2i thereafter. This deposit accumulates to 6.18 at the end of 10 years and to 27.47 at the end of 20 years. What is the value of the deposit at the end of 7 years? Solution:
Sandhill Corporation reports the following January 1, 2023 balances for its defined benefit pension plan, which it accounts for under IFRS: plan assets, $460,000; defined benefit obligation, $460,000. Other data relating to three years of operation of the plan are as follows: 2023 2024 2025 Annual service cost $34,800 $43,700 $58,600 Discount rate 10% 10% 10% Actual return on plan assets 37,100 50,040 54,000 Funding of current service cost 34,800 43,700 58,600 Funding of past service cost 74,000 78,500 Benefits paid 31,500 37,490 49,000 Past service cost (plan amended, 1/1/24) 348,000 Change in actuarial assumptions establishes a December 31, 2025 defined benefit obligation of 1,196,000
You are a pension fund manager who has obligations over the years to come of: t: 1 2 3 5 CF: 6.5 7 2.5 13.5 The applicable rate is: 0.095 What is the modified duration of this pension obligation? O3.0977 3.3360 3.2050 2.9786 3.4361 13
Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2024: Prior service cost at January 1, 2024, from plan amendment at the beginning of 2022 (amortization: $4 million per year) Net loss-pensions at January 1, 2024 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate ($ in millions) Beginning of 2024 Service cost Interest cost, 8% Loss (gain) on PBO Less: Retiree benefits End of 2024 Beginning of 2025 Service cost PBO $ 300 48 Interest cost, 8% Loss (gain) on PBO Less: Retiree benefits End of 2025 24 (2) (20) $ 350 PBO $ 350 38 28 5 Assume the following actuary and trustee reports indicating changes in the PBO and plan assets of Lakeside Cable during 2025: ($ in millions) (16) Beginning of 2024 Return on plan assets, 7.5% (10% expected) $ 405 Cash contributions Less: Retiree benefits End of 2024 Beginning of 2025 Return on plan assets, 15% (10% expected) $…
Sunland Toothpaste Company initiates a defined benefit pension plan for its 50 employees on January 1, 2020. The insurance company which administers the pension plan provided the following selected information for the years 2020, 2021, and 2022. For Year Ended December 31, 2020 2021 2022 Plan assets (fair value) $50,000 $85,000 $180,200 Accumulated benefit obligation 44,700 165,300 289,100 Projected benefit obligation 60,000 200,400 326,100 Net (gain) loss (for purposes of corridor calculation) 78,800 83,971 Employer's funding contribution (made at end of year) 50,000 60,000 105,100 There were no balances as of January 1, 2020, when the plan was initiated. The actual and expected return on plan assets was 10% over the 3-year period, but the settlement rate used to discount the company's pension obligation was 13% in 2020, 11% in 2021, and 8% in 2022. The service cost component of net periodic pension expense amounted to the following: 2020, $60,000; 2021, $85,000; and 2022, $118,000.…
Any past service costs should be included in the a) pension expense of past periods. b) pension expense of the current period. c) pension expense of current and future periods. d) plan assets.
33. In a defined-benefit plan, the process of funding refers to determining the projected benefit obligation. determining the amount that might be reported for pension expense. determining the accumulated benefit obligation. making the periodic contributions to a funding agency to ensure that funds are available to meet retirees' claims.
nku.3