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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Please answer in good accounting form. Thankyou 5. Compute for the annual retirement benefit expense for 2020. (present answer in whole number) 6. Compute for the annual retirement benefit expense for 2021. (present answer in whole number)
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…
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