ABC put up a qualified retirement plan approved by the BIR. It appointed B Corp. to administer theplan, which called for the payment of P200,000 to cover the retirement of employees for past servicesrendered and a yearly contribution of P50,000. The following amounts were paid for the first three yearsof the plan's operation:Contribution for ServicesPast YearsP 100,00060,00040,000Current YearsFirst year.Second year.Third year..P 50,00050,00050,0001. The pension expense for the first year isa. P 150,000b. Р 15,000с. Р 60,000d. P 105,0002. The pension expense for the second year isa. P110,000b. P 11,000с. Р 56,000d. P 66,0003. The pension expense for the third year isа. Р 90,000b. Р 9,000с. Р 54,000d. P 70,000

1. The first-year pension expenditure is equal to the total of previous years plus the current…

Answered: ABC put up a qualified retirement plan…

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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Blossom Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances related to this plan. Plan assets (market-related value) $480,000 Projected benefit obligation 650,000 Pension asset/liability 170,000 Cr. Prior service cost 80,000 Net gain or loss (debit) 85,000 As a result of the operation of the plan during 2020, the actuary provided the following additional data for 2020. Service cost $99,000 Settlement rate, 9%; expected return rate, 10% Actual return on plan assets 42,000 Amortization of prior service cost 25,000 Contributions 124,000 Benefits paid retirees 82,000 Average remaining service life of active employees 10 years Using the preceding data, compute pension expense for Blossom Corp. for the year 2020 by preparing a pension worksheet that shows the journal entry for pension expense. (Enter all amounts as positive.) PLEASE FIX THE INCORRECT…
A government makes a contribution to its pension plan in the amount of $10,000 for year 1. The actuarially-determined annual required contribution for year 1 was $12,500. The pension plan paid benefits of $8,200 and refunded employee contributions of $800 for year 1. What is the pension expense for the Government-Wide Statements for year 1? $8,200 $10,000 $12,500 None of above
George Corporation has a defined benefit pension plan for its employees. The following information is available for 20X1: $930,000 204,000 196,000 PBO at 1/1 Payments made to retirees at 12/31 Service cost 30,000 130,000 880,000 76,000 10% Actual return on plan assets Plan contributions at 12/31 Fair value of plan assets at 12/31 Amortization of prior service cost Discount rate Expected rate of return on plan assets 6% Required: 1. What was the January 1, 20X1, fair value of the plan assets? 2. What is the expected dollar return on plan assets for 20X1? 3. What amount of pension expense should George report for the year ended December 31, 20X1? 4. What was the dollar amount of loss (gain) on plan assets that was recognized in OCI during 20X1? 5. Prepare the journal entries to record pension expense, the contribution, and the OCI effects.
Martin Services Company provides their employees vacation benefits and a defined contribution pension plan. Employees earned vacation pay of $39,500 for the period. The pension plan requires a contribution to the plan administrator equal to 9% of employee salaries. Salaries were $750,000 during the period. Hide a. Provide the journal entry for the vacation pay. Hide b. Provide the journal entry for the pension benefit.
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The following information is related to the defined benefit pension plan of Avalanche Corporation for the year: Service cost $ 62,000 Contributions to pension plan 118,000 Benefits paid to retirees 156,000 Plan assets (fair value), January 1 641,000 Plan assets (fair value), December 31 758,000 Actual return on plan assets 155,000 PBO, January 1 925,000 PBO, December 31 923,500 Discount rate 10 % Long-term expected return on plan assets 9 % Assuming no other relevant data exist, what is the pension expense for the year? Multiple Choice $62,000. $89,810. $96,810. $154,500.
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