ABC Company's memorandum records for its defined benefit plan show the following balances atDecember 31, 2019Fair value of plan assets – P8,000,000Benefit obligation – P9,000,000The following have been gathered for the year 2020:Service cost for 2020P1,000,00010%Discount rateActual return on plan assetsBenefits paidContributions made640,000600,0002,000,000800,000Past service costThe benefit obligation as measured by the actuary at December 31, 2020 has a present value ofP11,050,000.Required: Compute for the following:1. Retirement benefit expense to be presented in the 2019 profit or loss.2. Defined benefit liability as of December 31, 2019

Expense- Expenses refers to the cost incurred in producing and selling the goods and services. All…

Answered: ABC Company's memorandum records for…

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

Charlton Company provided the following information concerning a defined benefit plan at the beginning ofcurrent year prior to the adoption of revised PAS 19:Debit CreditFair value of plan assets 4,750,000Unamortized past service cost 1,250,000Projected benefit obligation 5,500,000Unrecognized actuarial gain 850,000The transactions for the current year relating to the defined benefit plan are as follows:Current service cost 925,000Discount rate 6%Actual return on plan assets 485,000Contribution to the plan 1,350,000Benefits paid to retirees 995,000Increase in projected benefit obligation due to changes in actuarial assumptions 150,000Effective in the current year, the entity has applied the provisions of revised PAS 19 in relation to the definedbenefit plan. 18. Prepare journal entry to record the employee benefit expense.19. Compute for the Fair Value Plan Asset (FVPA) as of December 31.20. Compute for the projected benefit obligation on December 31.
On January 1, 2022, Seismic Slam Company had the following balances in its memorandum records: Fair value of plan assets P3,000,000; Defined benefit obligation P3,400,000. Other related to the retirement benefit plan for 2022 are as follows: Current service cost 200,000 Past service cost 150,000 Contribution to the plan 204,000 Benefits paid 200,000 Discount rate 8% Actual return on plan asset 285,000 Decrease in defined benefit obligation as a result of remeasurement 25,000 What amount of defined benefit cost should be reported in profit or loss? O 70,000 O 452,000 O 382,000 O 312,000
Asap
yuletide corporation reported the following data on january 1, 2021: projected benefit obligation 10,000,000 fair value of plan assets 9,000,000 during the currrent year, the actuary determined the current service cost at 2,000,000 and interest cost at 1,000,000. the interest income on plan assets was 900,000 while the actual return on plan assets was 600,000. there was a decrease in the projected benefit obligation due to changes in actuarial assumptions of 200,000. the average ramaining service period of the employees in 10 years. What is the defined benefit cost for the current year? a. 2,000,000 b. 2,500,000 c. 2,200,000 d. 2,100,000
Strangers & Co. has gathered the following information for its defined benefit plan in 2020:· Projected Benefit Obligation, 1/1/2020: P3,000,000· Projected Benefit Obligation, 12/31/2020: P3,355,000· Fair value of plan assets, 1/1/2020: P1,600,000· Fair value of plan assets, 12/31/2020: P2,260,000Current service cost for the year is P155,000, contributions to the fund totaled P500,000, and the actual return and interest income on the plan asset was P160,000. No benefits are paid during 2020. During the year, there was a decrease only in the projected benefit obligation due to revision of actuarial assumptions. How much should be recognized as Retirement/Employee Benefit Expense for 2020? a. 195,000 b. 295,000 c. 795,000 d. 500,000
What is the fair value of plan assets at year-end? 3650000 4650000 4900000 5850000 What is the net remeasurement of the defined benefit plan for the current year? 500 000 gain 500 000 loss 300 000 gain 300 000 loss What amount should be reported as accrued benefit cost at year-end? 2 000 000 1 500 000 1 750 000 500 000
Carla Company provides the following selected information related to its defined benefit pension plan for 2020. Pension asset/liability (January 1) $23,900 Cr. Accumulated benefit obligation (December 31) 401,000 Actual and expected return on plan assets 9,700 Contributions (funding) in 2020 149,800 Fair value of plan assets (December 31) 806,800 Settlement rate 10 % Projected benefit obligation (January 1) 702,800 Service cost 80,680 Results so far that are correct: Pension Expense $141260 Prepare the journal entry to record pension expense and the employer’s contribution to the pension plan in 2020. Preparation of a pension worksheet is not required. Benefits paid in 2020 were $31,600. Pension Expense $141260 Pension Asset/Liability $8540 Cash $149800 I am having problem with the Income Statement(Partial) and Balance Sheet (Partial). Indicate the pension-related amounts that…
The memorandum records ofGalindezTrading at January 1, 2021 show the following data: Define Benefit Obligation 2,600,000 Fair value of plan asset 3,000,000 The following information for 2021 is also provided: Service cost 800,000 Actual return on plan assets 300,000 Benefits paid 350,000 Contributions to the plan 780,000 Actuarial loss on remeasurement of defined benefit obligation 100,000 Discount rate 9% What are the balances of Benefit Obligation and Plan Asset at December 31, 2021? Group of answer choices 3,184,000 3,730,000 3,184,000 3,700,000 3,384,000 3,730,000 3,384,000 3,700,000
Calculate the amount that J&J’s retirement fund obligations are underfunded as of each year-end. How much of the underfunding is reported on the company’s balance sheet?
Ivanhoe Corp. provides the following information about its post-retirement health-care benefit plan for the year 2020: Current service cost Contribution to the plan Actual return on plan assets Benefits paid Plan assets at January 1, 2020 Defined post-retirement benefit obligation at January 1, 2020 Discount rate (a) $204,500 Post-retirement benefit expense $ 47,750 141,950 91,000 1,597,600 1,823,100 11% Assuming Opsco follows IFRS, calculate the post-retirement benefit expense for 2020.
On December 31, 2020, Detroit Company had the following balances in its memorandum records related to its defined benefit plan: - Fair value of plan assets-P10,000,000 - Benefit obligation- P12,000,000 Other relevant information relating to the plan for 2021 follows: • Current service cost- P2,000,000 • Past service cost- P1,300,000 Actual return on plan assets- P1,500,000 • Actuarial gain on benefit obligation- P400,000 • Actuarial gain on plan assets- P500,000 - Present value of benefits settled- P900,000 • Settlement price-P800,000 . Contribution to the plan- P3,100,000 - Discount rate- 12% How much is the employee benefit expense taken to profit or loss during 2021? A.P3,300,000B.P3,640,000C.P3,540,000D.P3,440,000
Larkspur Company provides the following information about its defined benefit pension plan for the year 2020. Service cost $90,900 Contribution to the plan 103,000 Prior service cost amortization 9,300 Actual and expected return on plan assets 63,200 Benefits paid 39,800 Plan assets at January 1, 2020 648,600 Projected benefit obligation at January 1, 2020 706,600 Accumulated OCI (PSC) at January 1, 2020 Interest/discount (settlement) rate 148,800 Items 10 % Prepare a pension worksheet inserting January 1, 2020, balances, showing December 31, 2020. (Enter all amounts as positive.) Annual Pension Expense Cash Gener

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS