A director of Company A shall receive a retirement benefit of 20% of final salary per annum for a contractual period of 3 years. The anticipated salary is P1,000,000 for 2020, P1,200,000 for 2021 and P1,500,000 for 2022. The discount rate is 10%. Compute for the ff: 1)Current service cost in 2020, 2021, and 2022 2)Interest expense in 2020, 2021, and 2022 3)PBO, Dec. 31,2020, Dec. 31,2021, and Dec. 31,2022

Q: Joshua Company has a define contribution plan that covers its existing employees. The terms of the…

A: The prepaid expenses are the payment of expenses in advance before they arise. Prepaid insurance is…

Q: At January 1, 2025, Ivanhoe Company had plan assets of $300,400 and a projected benefit obligation…

A: A pension is a fund into which regular contributions are made throughout a person's working career…

Q: Instructions (a) Determine the pension expense to be reported on the income statement for 2021. (b)…

A:

Q: On January 1 2025 strott company had a projected benefit obligation of 3,000,000. the company…

A: The objective of the question is to calculate the interest on the projected benefit obligation for…

Q: Brown Corp had a projected benefit obligation of $3,000,000 and plan assets of $2,500,000 at January…

A: Non-wage remuneration given to employees in addition to their regular income or wages is known as…

Q: For the current year, a company with a DB pension plan has service cost $106,000; benefits paid…

A: Defined benefit pension plans are the retirement designs that include providing a fixed and…

Q: sets and obligations Plan assets (at fair value) $600,000 Accumulated benefit obligation 1,110,000…

A: Pension expense refers to the amount which the business charges to the expense in relation to the…

Q: Information for the Crane Company pension plan in 2026 is as follows: Service cost is $67000…

A: Part 2: Explanation:Step 1: Calculate the actual return on plan assets:Actual return on plan assets…

Q: Sandhill Corporation had a projected benefit obligation of $3,210,000 and plan assets of $3,371,000…

A: INTRODUCTION: A component's or asset's initial cost is often written down over a specific period of…

Q: Information for the Wildhorse Company pension plan in 2026 is as follows: ● Service cost is $87000…

A: The unexpected gain or loss is calculated as the difference between the actual return on plan assets…

Q: Sunland Corporation had a projected benefit obligation of $3,323,000 and plan assets of $3,561,000…

A: Amortization -Amortization is the process of distributing or allocating a long-term liability's or…

Q: At January 1, 2020, Pharoah Corporation had plan assets of $257,000 and a defined benefit obligation…

A: SOLUTION CALCULATION OF EFFECTIVE CHARGING RATE = (1+0.10)*1/2 -1 = 4.88%   INTEREST AMOUNT =…

Q: A partially completed pension spreadsheet showing the relationships among the elements that comprise…

A: Pension funds are created to provide future benefits to the organization's employees. The pension…

Q: At January 1, 2020, HH Company had plan assets of P250,000 and a defined benefit obligation of the…

A: Defined Benefit Obligation refer to the amount of money that a company owes to its employees in the…

Q: service and interest cost.

A: The accounting of pensions is quite complex. It involves study of- the actual return earned on plan…

Q: The projected benefit obligation was $340 million at the beg the year, pension benefits paid by the…

A: Service cost  Service Costs are the Consultant's predetermined monthly costs for the performance of…

Q: Coronado Corporation had a projected benefit obligation of $2,890,000 and plan assets of $3,097,000…

A: Corridor rule says that losses or gains which  exceed 10 % of Higher of Pension benefit obligation…

Q: A company's pension plan fund had a balance of $500,000 on January 1, 2019 and $650,000 on December…

A: Introduction Dollar-weighted rate of return The rate of return at which the projected cash inflows…

Q: EIGHT Company has a defined contribution retirement plan that covers its seventy five existing…

A: SOLUTION   FORMULA- ANNUAL RETIREMENT BENEFIT EXPENSE= QUARTERLY SALARY * NO OF QUARTER * 7.5%.

Q: A partially completed pension spreadsheet showing the relationships among the elements that comprise…

A: Retirement benefit plan: It is an arrangement by which an entity provides the benefits ( either…

Q: On January 1, 2024, Onyeocha Climbing Academy instituted a defined benefit pension plan for its…

A: Pension is defined as the fund collected from the taxpayer or employee during his term of…

Q: Accounting Wright Supplies has a defined benefit pension plan for their 750 employees. In 2020, the…

A: employee work in the organisation are paid certain amount of pension in addition to the salary and…

Q: A partially completed pension spreadsheet showing the relationships among the elements that comprise…

A: A pension worksheet helps to know about the benefits or losses from the particular scheme. It is…

Q: on january 2026 peabody company has the following balances: projected benefit obligation $4,500,000…

A: The objective of the question is to calculate the fair value of the plan assets on December 31,…

Q: Company A has established a defined benefit plan indicating a plan formula for annual benefit equal…

A: Computation is as follows:Part 1)Last year salary=8000002% of last year salary multiplied by number…

Q: What is the amount of amortization of the other comprehensive income gain or loss in 2026?

A: To discover the amortization quantity, we want to apply the corridor method, that's a technique of…

Q: Herring Wholesale Company has a defined benefit pension plan. On January 1, 2021, the following…

A: When a net gain or loss at the start of the year exceeds 10% of the PBO or 10% of plan assets,…

Q: Carla Vista Corporation had a projected benefit obligation of $3,280,000 and plan assets of…

A: A pension is a retirement plan that provides a fixed or regular income to an individual after they…

Q: ord Corporation amended its pension plan on January 1, 2020, and granted $162,540of prior servic…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: At January 1, 2020, Sarasota Company had plan assets of $283,600 and a projected benefit obligation…

A: Interest cost = plan assets on January 1, 2020 x settlement rate  = $283,600*10% = $28,360

Q: At January 1, 2019, Jolly Company had plan assets of P2, 800,000 and a projected benefit obligation…

A: Pension: It refers to a reserve made for employee retirement period by depositing the sum of money…

Q: Sony, Inc.'s defined benefit pension plan reported the following information for 2021: Projected…

A: Plan assets are the fund collected from the contribution of employee and employer for discharging…

Q: A partially completed pension spreadsheet showing the relationships among the elements that comprise…

A: Define pension plan asset refers to the contribution to the plan for the employee benefit. It is a…

Q: how much is the net remeasurement gain/loss at the end of the year?

A: Net re-measurement is the measurement which has been calculated by the company when all the losses…

Q: Buffalo Corporation had a projected benefit obligation of $3,280,000 and plan assets of $3,446,000…

A: Solution:- calculation of the Minimum amortization of the actuarial loss as follows under:-

Q: after Future value of 1 at 4% for 5 periods PV of an ordinary annuity of 1 at 12% for 6 periods PV…

A: 500000 X FV of 4% for 5 yr (1.217) = 6,08,500

Q: Please answer in good accounting form. Thankyou 5. Compute for the annual retirement benefit…

A: Here in this question, we are required to calculate how much amount should be reported as annual…

Q: he average remaining service life per employee in 2024 and 2025 is 8 years and in 2026 and 2027 is…

A: Projected benefit Obligation-The projected benefit obligation name itself says it is an obligation…

Q: sing amounts. your answers in thousands (i.e., 5,500 should be entered as 5.5). Enter credit amounts…

A: ($ in 000)PBOPlan AssetsPrior ServiceNet Loss-PensionCashNet…

Q: A partially completed pension spreadsheet showing the relationships among the elements that comprise…

A: A pension worksheet helps to know about the benefits or losses from the particular scheme. It is…

Q: Herring Wholesale Company has a defined benefit pension plan. On January 1, 2024, the following…

A: When a net gain or loss at the start of the year exceeds 10% of the PBO or 10% of plan assets,…

Employee Benefits

In an organization employees are the most important resource and most important asset. They can lead an organization to the sky or can be the reason for unsuccessful of business. Therefore, it is very much important that employees of an organization should be satisfied by the environment of the organization and most importantly with the salary, wages incentives, etc.