3. How much from the pension expense is recognized in the 2021 other comprehensiveincome or loss?4. What is the prepaid(accrued) pension expense as of December 31, 2021? Problem 1:The following selected post-retirement benefit accounts were lifted from the 2021 unadjusted trialbalance of EMM Corp. No adjusting entry had been made yet at year end in relation to the post-retirement benefits related accounts.Prepaid Pension Expense, January 1, 2021Pension expense for 2021, amount contributed to the planP 493,900P 500,000Additional information:The memorandum account balances and other off-books transactions are as follows:Plan asset at fair market value, January 1, 2021Accumulated benefit obligation at present value, January 1, 2021Payments to retirees at scheduled retirement in 2021Payments to early retirees (settlement price) in 2021Carrying value of accrued benefits of early retirees in 2021P 3,245,400P 2,751,500P 350,000P 300,000P 220,000P 535,000P 275,000Current service costPast service cost recognized in the current yearSettlement rate12%Plan asset at fair market value, December 31, 2021Accumulated benefit obligation at present value, December 31, 2021 P 3,852,100P 3,569,900There had been no remeasurement (actuarial) gain or loss from plan asset and accumulatedretirement obligation in the prior years.

Pension is a type Government Expense however it is beneficial for government retired employees.They…

Answered: 3. How much from the pension expense is…

3. How much from the pension expense is recognized in the 2021 other comprehensive income or loss? 4. What is the prepaid(accrued) pension expense 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

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Question

3. How much from the pension expense is recognized in the 2021 other comprehensive
income or loss?
4. What is the prepaid(accrued) pension expense as of December 31, 2021?

Problem 1:
The following selected post-retirement benefit accounts were lifted from the 2021 unadjusted trial
balance of EMM Corp. No adjusting entry had been made yet at year end in relation to the post-
retirement benefits related accounts.
Prepaid Pension Expense, January 1, 2021
Pension expense for 2021, amount contributed to the plan
P 493,900
P 500,000
Additional information:
The memorandum account balances and other off-books transactions are as follows:
Plan asset at fair market value, January 1, 2021
Accumulated benefit obligation at present value, January 1, 2021
Payments to retirees at scheduled retirement in 2021
Payments to early retirees (settlement price) in 2021
Carrying value of accrued benefits of early retirees in 2021
P 3,245,400
P 2,751,500
P 350,000
P 300,000
P 220,000
P 535,000
P 275,000
Current service cost
Past service cost recognized in the current year
Settlement rate
12%
Plan asset at fair market value, December 31, 2021
Accumulated benefit obligation at present value, December 31, 2021 P 3,852,100
P 3,569,900
There had been no remeasurement (actuarial) gain or loss from plan asset and accumulated
retirement obligation in the prior years.

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