Apul 17th El Mas Asambroso, Inc., generously sponsors a defined benefit plan for the man worthy employees of the company. On January 1, 2012 the following balances related to the defined benefit plan: Fair value of plan assets (MRAV) Projected benefit obligation Pension liability (credit balance) Other comprehensive income - prior service cost (dr. balance) Other comprehensive income - gains/losses (dr. balance) As of December 31, 2012 El Mas Asabroso amended the plan to give additional credit to existing employees for earlier years. The amendment resulted in an increase in the projected benefit obligation amounting to $ 131,000 The following additional data are provided by the drone actuaries: $ 700,000 $ 730,000 $ 30,000 $ 52,000 $ 158,000 2012 2013 1 Service cost 2 Settlement rate 3 Actual return on plan assets $ 82,000 $ 7% 111,000 6% $ 31,000 $ 127,000 4 Amortization of prior service cost $ 10,400 $ 43,150 5 Expected return on plan assets $ 70,000 $ 66,690 6 Unexpected gain/(loss) from change in the projected benefit obligation due to a change in actuarial assumptions $ (56,000) 14,000 7 Plan contributions paid-in $ 66,000 $ 108,000 $ 56,000 $ 72,000 10 years 10 years 8 Benefits paid to worthy retirees 9 Average remaining service life of employees Instructions: a Calculate the following: 1 Pension expense for 2012 and 2013 2 Projected benefit obligation at Dec. 31, 2012 and Dec. 31, 2013 3 Fair value of plan assets at Dec. 31, 2012 and Dec. 31, 2013 4 Pension liability at Dec. 31, 2012 & Dec. 31, 2013 5 Unamortized prior service cost at Dec. 31, 2012 and Dec. 31, 2013 6 Unamortized "gains & losses" at Dec. 31, 2012 and Dec. 31, 2013 b Prepare the 2012 & 2013 journal entries relative to the pension plan.
Apul 17th El Mas Asambroso, Inc., generously sponsors a defined benefit plan for the man worthy employees of the company. On January 1, 2012 the following balances related to the defined benefit plan: Fair value of plan assets (MRAV) Projected benefit obligation Pension liability (credit balance) Other comprehensive income - prior service cost (dr. balance) Other comprehensive income - gains/losses (dr. balance) As of December 31, 2012 El Mas Asabroso amended the plan to give additional credit to existing employees for earlier years. The amendment resulted in an increase in the projected benefit obligation amounting to $ 131,000 The following additional data are provided by the drone actuaries: $ 700,000 $ 730,000 $ 30,000 $ 52,000 $ 158,000 2012 2013 1 Service cost 2 Settlement rate 3 Actual return on plan assets $ 82,000 $ 7% 111,000 6% $ 31,000 $ 127,000 4 Amortization of prior service cost $ 10,400 $ 43,150 5 Expected return on plan assets $ 70,000 $ 66,690 6 Unexpected gain/(loss) from change in the projected benefit obligation due to a change in actuarial assumptions $ (56,000) 14,000 7 Plan contributions paid-in $ 66,000 $ 108,000 $ 56,000 $ 72,000 10 years 10 years 8 Benefits paid to worthy retirees 9 Average remaining service life of employees Instructions: a Calculate the following: 1 Pension expense for 2012 and 2013 2 Projected benefit obligation at Dec. 31, 2012 and Dec. 31, 2013 3 Fair value of plan assets at Dec. 31, 2012 and Dec. 31, 2013 4 Pension liability at Dec. 31, 2012 & Dec. 31, 2013 5 Unamortized prior service cost at Dec. 31, 2012 and Dec. 31, 2013 6 Unamortized "gains & losses" at Dec. 31, 2012 and Dec. 31, 2013 b Prepare the 2012 & 2013 journal entries relative to the pension plan.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please Solve and provide step by step explaination of numbers on every step
Transcribed Image Text:Apul 17th
El Mas Asambroso, Inc., generously sponsors a defined benefit plan for the man
worthy employees of the company. On January 1, 2012 the following balances related
to the defined benefit plan:
Fair value of plan assets (MRAV)
Projected benefit obligation
Pension liability (credit balance)
Other comprehensive income - prior service cost (dr. balance)
Other comprehensive income - gains/losses (dr. balance)
As of December 31, 2012 El Mas Asabroso amended the plan to give additional credit to
existing employees for earlier years. The amendment resulted in an increase in the
projected benefit obligation amounting to
$
131,000
The following additional data are provided by the drone actuaries:
$
700,000
$
730,000
$
30,000
$
52,000
$
158,000
2012
2013
1 Service cost
2 Settlement rate
3 Actual return on plan assets
$
82,000 $
7%
111,000
6%
$
31,000 $
127,000
4 Amortization of prior service cost
$
10,400 $
43,150
5 Expected return on plan assets
$
70,000 $
66,690
6 Unexpected gain/(loss) from change in the projected benefit
obligation due to a change in actuarial assumptions
$
(56,000)
14,000
7 Plan contributions paid-in
$
66,000 $
108,000
$
56,000 $
72,000
10 years
10 years
8 Benefits paid to worthy retirees
9 Average remaining service life of employees
Instructions:
a
Calculate the following:
1 Pension expense for 2012 and 2013
2 Projected benefit obligation at Dec. 31, 2012 and Dec. 31, 2013
3 Fair value of plan assets at Dec. 31, 2012 and Dec. 31, 2013
4 Pension liability at Dec. 31, 2012 & Dec. 31, 2013
5 Unamortized prior service cost at Dec. 31, 2012 and Dec. 31, 2013
6 Unamortized "gains & losses" at Dec. 31, 2012 and Dec. 31, 2013
b Prepare the 2012 & 2013 journal entries relative to the
pension plan.
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