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10. Porgy Co.'s retirement plan requires a P250,000 annual contribution to a fund held by a third party trustee. The fund is legally separate from Porgy Co. and is available solely for the payment of the retirement benefits of Porgy's employees. At the beginning 2019, the fund balance is P2,800,000. In its December 31, 2018 and December 31, 2019 statements of financial position, Porgy reported accrued payable for retirement benefits of P30,000 and P80,000, respectively. Payments to retiring employees during 2019 totaled P750,000. How much is the retirement benefits expense in 2019? a. 250,000 b. 700,000 c. 750,000 d. 800,000

10. Porgy Co.'s retirement plan requires a P250,000 annual contribution to a fund held by a third party trustee. The fund is legally separate from Porgy Co. and is available solely for the payment of the retirement benefits of Porgy's employees. At the beginning 2019, the fund balance is P2,800,000. In its December 31, 2018 and December 31, 2019 statements of financial position, Porgy reported accrued payable for retirement benefits of P30,000 and P80,000, respectively. Payments to retiring employees during 2019 totaled P750,000. How much is the retirement benefits expense in 2019? a. 250,000 b. 700,000 c. 750,000 d. 800,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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10. Porgy Co.'s retirement plan requires a P250,000 annual contribution to a fund held by a third party trustee. The fund is legally separate from Porgy Co. and is available solely for the payment of the retirement benefits of Porgy's employees. At the beginning 2019, the fund balance is P2,800,000. In its December 31, 2018 and December 31, 2019 statements of financial position, Porgy reported accrued payable for retirement benefits of P30,000 and P80,000, respectively. Payments to retiring employees during 2019 totaled P750,000. How much is the retirement benefits expense in 2019? a. 250,000 b. 700,000 с. 750,000 d. 800,000 11. The actuarial valuation report of an entity shows the following information: Present value of defined benefit obligation, Jan. 1 340,000 30,000 Current service cost Discount rate 10% Benefits paid to retirees Actuarial gain 100,000 60,000 How much is the year-end balance of the present value of defined benefit obligation? d. 364,000 а. 210,000 b. 244,000 c. 304,000 12. The actuarial valuation report of an entity shows the following information: Present value of defined benefit obligation, Jan. 1 280,000 Discount rate 14% Benefits paid to retirees Actuarial gain Present value of defined benefit obligation, Dec. 31 90,000 60,000 210,000 How much is the current service cost? b. 40,800 b. 44,800 c. 48,200 d. 79,200
Transcribed Image Text:10. Porgy Co.'s retirement plan requires a P250,000 annual contribution to a fund held by a third party trustee. The fund is legally separate from Porgy Co. and is available solely for the payment of the retirement benefits of Porgy's employees. At the beginning 2019, the fund balance is P2,800,000. In its December 31, 2018 and December 31, 2019 statements of financial position, Porgy reported accrued payable for retirement benefits of P30,000 and P80,000, respectively. Payments to retiring employees during 2019 totaled P750,000. How much is the retirement benefits expense in 2019? a. 250,000 b. 700,000 с. 750,000 d. 800,000 11. The actuarial valuation report of an entity shows the following information: Present value of defined benefit obligation, Jan. 1 340,000 30,000 Current service cost Discount rate 10% Benefits paid to retirees Actuarial gain 100,000 60,000 How much is the year-end balance of the present value of defined benefit obligation? d. 364,000 а. 210,000 b. 244,000 c. 304,000 12. The actuarial valuation report of an entity shows the following information: Present value of defined benefit obligation, Jan. 1 280,000 Discount rate 14% Benefits paid to retirees Actuarial gain Present value of defined benefit obligation, Dec. 31 90,000 60,000 210,000 How much is the current service cost? b. 40,800 b. 44,800 c. 48,200 d. 79,200
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