Actuary and trustee reports indicate the following changes in the PBO and plan assets of Mahomes Industries during 2024:Prior service cost at January 1, 2024, from plan amendment at the beginning of 2021(amortization: $12 million per year)Net loss-AOCI at January 1, 2024 (previous losses exceeded previous gains)Average remaining service life of the active employee groupActuary's discount rate($ in millions)PBOBeginning of 2024Service costInterest cost, 7%Loss (gain) on PBOLess: Retiree benefitsEnd of 2024Plan AssetsBeginning of 2024$ 1,40088Return on plan assets, 8% (10%expected)98(22)Cash contributions(54)Less: Retiree benefits$ 1,510End of 2024$ 84 million$ 480 million10 years7%$ 1,2009698(54)$ 1,340Required:1-a. Determine Mahomes's pension expense for 2024.1-b, 2. to 4. Prepare the appropriate journal entries to record the pension expense, to record any 2024 gains and losses, to record thecash contribution to plan assets and to record retiree benefits.Complete this question by entering your answers in the tabs below.Req 1AReq 1B and 2to 4Determine Mahomes's pension expense for 2024.Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 shouldbe entered as 10).Pension ExpenseService cost$88Interest cost98Amortization of prior service cost9Expected return on the plan assets(120)Amortization of net lossPension expense$75

Actuary and trustee reports indicate the following changes in the PBO and plan assets of Mahomes Industries during 2024: Prior service cost at January 1, 2024, from plan amendment at the beginning of 2021 (amortization: $12 million per year) Net loss-AOCI at January 1, 2024 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate ($ in millions) PBO Beginning of 2024 Service cost Interest cost, 7% Loss (gain) on PBO Less: Retiree benefits End of 2024 Required: Plan Assets Beginning of 2024 $ 1,400 88 Return on plan assets, 8% (10% expected) 98 (22) Cash contributions (54) $ 1,510 Less: Retiree benefits End of 2024 1-a. Determine Mahomes's pension expense for 2024. $ 84 million $ 480 million 10 years 7% $ 1,200 96 98 (54) $ 1,340 1-b, 2. to 4. Prepare the appropriate journal entries to record the pension expense, to record any 2024 gains and losses, to record the cash contribution to plan assets and to record retiree benefits.

Actuary and trustee reports indicate the following changes in the PBO and plan assets of Mahomes Industries during 2024: Prior service cost at January 1, 2024, from plan amendment at the beginning of 2021 (amortization: $12 million per year) Net loss-AOCI at January 1, 2024 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate ($ in millions) PBO Beginning of 2024 Service cost Interest cost, 7% Loss (gain) on PBO Less: Retiree benefits End of 2024 Required: Plan Assets Beginning of 2024 $ 1,400 88 Return on plan assets, 8% (10% expected) 98 (22) Cash contributions (54) $ 1,510 Less: Retiree benefits End of 2024 1-a. Determine Mahomes's pension expense for 2024. $ 84 million $ 480 million 10 years 7% $ 1,200 96 98 (54) $ 1,340 1-b, 2. to 4. Prepare the appropriate journal entries to record the pension expense, to record any 2024 gains and losses, to record the cash contribution to plan assets and to record retiree benefits.

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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Subject: accounting
Required information [The following information applies to the questions displayed below.] Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2024: Prior service cost at January 1, 2024, from plan amendment at the beginning of 2022 (amortization: $6 million per year) Net loss-pensions at January 1, 2024 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate $ 50 million $60 million 10 years 8% ($ in millions) PBO Beginning of 2024 $ 500 Beginning of 2024 Service cost 66 Interest cost, 8% 40 Return on plan assets, 7.5% (10% expected) Loss (gain) on PBO (4) Cash contributions Less: Retiree benefits (52) Less: Retiree benefits End of 2024 $ 550 End of 2024 Plan Assets $360 27 65 (52) $400 Assume the following actuary and trustee reports indicating changes in the PBO and plan assets of Lakeside Cable during 2025: ($ in millions) Beginning of 2025 PBO $ 550…
Presented below is information related to Rip-Off Fuels Inc. for calendar year 2019. The corporation uses IFRS. Defined benefit obligation, Jan 1 $ 720,000 Fair value of plan assets, Jan 1 700,000 Current service cost 90,000 Contributions to plan 125,000 Actual and expected return on plan assets 56,000 Past service costs (effective Jan 1) 10,000 Benefits paid to retirees 96,000 Interest (discount) rate 9% The balance of the defined benefit obligation at December 31, 2019 is Select one: a. $ 724,000. b. $ 779,700. c. $ 778,800. d. $ 789,700. e. None of the above.
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The following selected post-retirement benefit accounts were lifted from the 2021 unadjusted trial balance of EMM Corp. No adjusting entry had been made yet at year end in relation to the post-retirement benefits related accounts. Prepaid Pension Expense, January 1, 2021 ₱ 493,900Pension expense for 2021, amount contributed to the plan ₱ 500,000Additional information:The memorandum account balances and other off-books transactions are as follows:Plan asset at fair market value, January 1, 2021 ₱ 3,245,400Accumulated benefit obligation at present value, January 1, 2021 ₱ 2,751,500Payments to retirees at scheduled retirement in 2021 ₱ 350,000Payments to early retirees (settlement price) in 2021 ₱ 300,000Carrying value of accrued benefits of early retirees in 2021 ₱ 220,000Current service cost ₱ 535,000Past service cost recognized in the current year ₱ 275,000Settlement rate 12%Plan asset at fair market value, December 31, 2021 ₱ 3,569,900Accumulated benefit obligation at present value,…
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Sunland Corporation is a private company with a defined benefit pension plan. The following information is available for Sunland for 2023: Opening balance, DBO Opening balance, plan assets Service cost Employer contributions paid evenly through 2023 Applicable interest or discount rate Actual return on plan assets Actuarial loss due to change in actuarial assumptions $188,000 179,000 eTextbook and Media 52,000 69,000 10% 22,500 12,500 Assuming that Sunland follows IFRS, determine the 2023 effect of the pension plan on defined benefit expense and the company's shareholders' equity. total defined benefit expense and a related decrease in the net income and retained earnings by $ 58400 and
D
The actuary for the pension plan of Sheridan Inc, calculated the following net gains and losses. Incurred during the Year 2020 2021 2022 2023 As of January 1, 2020 2021 Other information about the company's pension obligation and plan assets is as follows. 2022 2023 2020 2021 2022 2023 (Gain) or Loss $301,200 $ 477,600 Projected Benefit Obligation $ (211,500) (290,200) $ $ Year Minimum Amortization of (Gain) Loss Sheridan Inc. has a stable labor force of 400 employees who are expected to receive benefits under the plan. The total service-years for all participating employees is 4,800. The beginning balance of accumulated OCI (G/L) is zero on January 1, 2020. The market- related value and the fair value of plan assets are the same for the 4-year period. Use the average remaining service life per employee as the basis for amortization. $3,996,200 Compute the minimum amount of accumulated OCI (G/L) amortized as a component of net periodic pension expense for each of the years 2020, 2021,…
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Subject: acounting