#9 Kaley Company has had a defined benefit pension plan for several vears. At the end of 2020, Kaley s actuary proviecthe following information for 2020 regarding the pension plan: (1) service cost, $225,000; (2) expected returm on planassets, $15,000; (3) amortization of net loss, $4,000: (4) interest cost on projected benefit obligation, $18,500, ana (5amortization of prior service cost, $14,000. Kalev decides to fund an amount at the end of 2020 equal to its pensionexpense.Compute the amount of Kaley's pension expense for 2020 and prepare the related journal entry.#10 Dunbar Ltd. has cash flow from operations of $120,000, average current assets of $250,000, average currentliabilities of $150,000 and total liabilities of $400,000. What is their operating cash flow ratio? What is their operatingcash flow to total liabilities ratio?

Pension expenses: To give its workers a chance to retire is the meaning represented by pension…

#9 Kaley Company has had a defined benefit pension plan for several years. At the end of 2020, Kaley's actuary provided the following information for 2020 regarding the pension plan: (1) service cost, $225,000; (2) expected return on plan assets, $15,000; (3) amortization of net loss, $4,000; (4) interest cost on projected benefit obligation, $18,500; and (5) amortization of prior service cost, $14,000. Kaley decides to fund an amount at the end of 2020 equal to its pension expense. Compute the amount of Kaley's pension expense for 2020 and prepare the related journal entry. #10 Dunbar Ltd. has cash flow from operations of $120,000, average current assets of $250,000, average current liabilities of $150,000 and total liabilities of $400,000. What is their operating cash flow ratio? What is their operating cash flow to total liabilities ratio?

#9 Kaley Company has had a defined benefit pension plan for several years. At the end of 2020, Kaley's actuary provided the following information for 2020 regarding the pension plan: (1) service cost, $225,000; (2) expected return on plan assets, $15,000; (3) amortization of net loss, $4,000; (4) interest cost on projected benefit obligation, $18,500; and (5) amortization of prior service cost, $14,000. Kaley decides to fund an amount at the end of 2020 equal to its pension expense. Compute the amount of Kaley's pension expense for 2020 and prepare the related journal entry. #10 Dunbar Ltd. has cash flow from operations of $120,000, average current assets of $250,000, average current liabilities of $150,000 and total liabilities of $400,000. What is their operating cash flow ratio? What is their operating cash flow to total liabilities ratio?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 4E

See similar textbooks

Similar questions

Given the following information for Tyler Companys pension plan at the beginning of the year, calculate the corridor, excess net loss (gain), and amortized net loss (gain). Assume an average remaining service life of 15 years.
The following information is available for the pension pan of Ivanhoe Company for the year 2020. Actual and expected return on plan assets Benefits paid to retirees Contributions (funding) Interest/discount rate Prior service cost amortization Projected benefit obligation, January 1, 2020 Service cost (a) Your answer is correct. Compute pension expense for the year 2020. Pension expense for 2020 eTextbook and Medial List of Accounts $ $13.800 36,600 88,000 11 % 7,900 502,000 59,000 108320
On January 1, 2020, Spoon Co. had the following balances: Projected benefit obligation $7,300,000 Fair value of plan assets 7,200,000 Other data related to the pension plan for 2020: Service cost 315,000 Contributions to the plan Benefits paid 350,000 Interest rate 6% Actual return 432,000 A) Prepare a pension worksheet. You must compute pension expense and ending balances for PBO & PA. B) Prepare the journal entry to record pension expense.. Show all computations for A & B. 360,000
The following facts for Storm plc apply to the pension plan for 2019.1. Annual service cost is 18,0002. Discount Rate is 10%3. Actual return on plan assets is $22,0004. Annual funding contributions are $34,0005. Benefits paid to retirees during the year are $20,5006. Changes in actuarial assumptions establish the end of year defined benefit obligation at $285,000 Required:a. Prepare a pension worksheet using the following table and given the following opening balances. b. Prepare the necessary pension journal entries in accordance with IAS 19 pension Benefits for Storm plc for year ending 2019.
The following facts apply to the pension plan of Wildhorse Inc. for the year 2020. Plan assets, January 1, 2020 $470,900 Projected benefit obligation, January 1, 2020 470,900 Settlement rate 8 % Service cost 38,500 Contributions (funding) 24,300 Actual and expected return on plan assets 46,800 Benefits paid to retirees 34,700 Using the preceding data, compute pension expense for the year 2020. As part of your solution, prepare a pension worksheet that shows the journal entry for pension expense for 2020 and the year-end balances in the related pension accounts. (Enter all amounts as positive.) WILDHORSE INC.Pension Worksheet—2020 General Journal Entries Memo Record Items Annual PensionExpense Cash Pension Asset/Liability Projected BenefitObligation PlanAssets Balance, January 1, 2020 $enter a net debit or credit balance select between debit and credit $enter a net debit or…
Wildhorse Company provides the following information about it defined benefit pension plan for the year 2025. Service cost $89, 200 Contribution to the plan amortization 10,300 Actual and expected return on plan assets 64, 100 Benefits paid 40, 100 Plan assets at January 1, 2025 632, 500 Projected benefit obligation at January 1, 2025 702,600 Accumulated OCI (PSC) at January 1, 2025 151,200 Interest/discount (settlement) rate 11% Compute the pension expense for the year 2025
The following information is available for the pension plan of Wildhorse Company for the year 2020. Actual and expected return on plan assets $ 15,800 Benefits paid to retirees 39,500 Contributions (funding) 88,700 Interest/discount rate 11 % Prior service cost amortization 7,600 Projected benefit obligation, January 1, 2020 548,000 Service cost 60,000 (a) Correct answer icon Your answer is correct. Compute pension expense for the year 2020. Pension expense for 2020 $enter pension expense for 2017 in dollars eTextbook and Media List of Accounts Attempts: 1 of 3 used (b) Prepare the journal entry to record pension expense and the employer’s contribution to the pension plan in 2020. (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…
The following information is available for the pension plan of Sunland Company for the year 2020. Actual and expected return on plan assets $ 14,700 Benefits paid to retirees 40,800 Contributions (funding) 81,100 Interest/discount rate 10 % Prior service cost amortization 7,600 Projected benefit obligation, January 1, 2020 458,000 Service cost 63,900 (a) Compute pension expense for the year 2020. Pension expense for 2020 %24
The following information is available for the pension plan of Pharoah Company for the year 2025. Actual and expected return on plan assets Benefits paid to retirees $13,800 38,400 Contributions (funding) Interest/discount rate 79,900 10% Prior service cost amortization 7,800 Projected benefit obligation, January 1, 2025 452,000 Service cost 54,700 (a) Your answer is correct. Compute pension expense for the year 2025. Pension expense for 2025 eTextbook and Media List of Accounts 93900 i Attemp (b) Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2025. (C titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" fo titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit
The following facts apply to the pension plan of Splish Inc. for the year 2020. Plan assets, January 1, 2020 $525,500 Projected benefit obligation, January 1, 2020 525,500 Settlement rate 8% Service cost 36,800 Contributions (funding) 23,800 Actual and expected return on plan assets 49,800 Benefits paid to retirees 30,300 Using the preceding data, compute pension expense for the year 2020. As part of your solution, prepare a pension worksheet that shows the journal entry for pension expense for 2020 and the year-end balances in the related pension accounts.
On December 31, 2019, Robey Company accumulated the following information for 2019 in regard to its defined benefit pension plan: Service cost $95,610 Interest cost on projected benefit obligation 11,810 Expected return on plan assets 11,050 Amortization of prior service cost 1,950 On its December 31, 2018, balance sheet, Robey had reported an accrued/prepaid pension cost liability of $14,790. Required: 1. Compute the amount of Robey’s pension expense for 2019. 2. Prepare all the journal entries related to Robey’s pension plan for 2019 if it funds the pension plan in the amount of (a) $98,320, (b) $97,290, and (c) $102,670. 3. Next Level Assuming Robey’s beginning 2019 Accumulated Other Comprehensive Income: Prior Service Cost balance was $57,370 what would be its ending balance? 4. Next Level How much would Robey need to fund its pension plan for 2019 in order to report an accrued/ prepaid pension cost asset of $4,780 at the end of 2019?
The following information is available for the pension plan of Carla Vista Company for the year 2025. Actual and expected return on plan assets Benefits paid to retirees Contributions (funding) Interest/discount rate Prior service cost amortization Projected benefit obligation, January 1, 2025 Service cost (a) Compute pension expense for the Pension expense for 2025 $ year 2025. $14,900 42,000 83,300 9% 7,700 511,000 55,100