**Bissell Company's Defined Benefit Pension Plan Report**Bissell Company has received the following reports concerning its defined benefit pension plan for the current calendar year:**Pension Benefit Obligation (PBO)**- **Balance, January 1:** $400,000- **Service Cost:** $195,000- **Interest Cost:** $32,000- **Benefits Paid:** ($80,000)- **Balance, December 31:** $547,000**Plan Assets**- **Balance, January 1:** $250,000- **Actual Return:** $30,000- **Annual Contribution:** $110,000- **Benefits Paid:** ($80,000)- **Balance, December 31:** $310,000The long-term expected rate of return on plan assets is 10%. Assuming no other data are relevant, what is the pension expense for the year?**Multiple Choice Options**1. $202,0002. $197,0003. $227,000

PENSION EXPENSE FOR THE YEAR : = SERVICE COST + INTEREST COST -EXPECTED RATE OF RETURN ON PLAN…

Answered: Bissell Company received the following…

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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Pharoah Company adopts acceptable accounting for its defined benefit pension plan on January 1, 2024, with the following beginning balances: plan assets $202,100; projected benefit obligation $247,000. Other data relating to 3 years' operation of the plan are as follows. Annual service cost Settlement rate and expected rate of return Actual return on plan assets Annual funding (contributions) Benefits paid Prior service cost (plan amended, 1/1/25) Amortization of prior service cost Change in actuarial assumptions establishes a December 31, 2026, projected benefit obligation of: (a) (b) Date Dec. 31, 2024 Dec. 31, 2025 Dec. 31, 2026 V Account Titles and Explanation Pension Expense Other Comprehensive Income (G/L) Cash Pension Asset/Liability Pension Expense Other Comprehensive Income (PSC) Cash Pension Asset/Liability Pension Asset/Liability Other Comprehensive Income (G/L) Other Comprehensive Income (PSC) 2024 $16,100 Prepare the journal entries (from the worksheet) to reflect all…
The following facts apply to the pension plan of Teal Inc. for the year 2020. Plan assets, January 1, 2020 $534,900 Projected benefit obligation, January 1, 2020 534,900 Settlement rate 8 % Service cost 40,500 Contributions (funding) 23,800 Actual and expected return on plan assets 53,000 Benefits paid to retirees 31,900 Using the preceding data, compute pension expense for the year 2020. As part of your solution, prepare a pension worksheet that shows the journal entry for pension expense for 2020 and the year-end balances in the related pension accounts. (Enter all amounts as positive.)
I. Broncos Co. reports pretax financial income of $70,000 for 20x1. The following items cause taxable income to be different than pretax financial income: ● ● Depreciation on the tax return is greater than depreciation on the income statement by $16,000. Rent collected on the tax return is greater than rent earned on the income statement by $22,000. Fines for pollution appear as an expense of $11,000 on the income statement. Interest income from City of Phoenix municipal bonds is $5,000. Broncos' tax rate is 30% for all years and the company expects to report taxable income in all future years. a) Compute taxable income. b) Prepare the journal entry to record income tax expense, deferred income tax, and income tax payable for 20x1. c) Compute net income for 20x1.
Rahul
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.
age Company adopts acceptable accounting for its defined benefit pension plan on January 1, 2019, with the following beginning balances: plan assets $198,200; projected benefit obligation $251,000. Other data relating to 3 years’ operation of the plan are as follows. 2019 2020 2021 Annual service cost $16,300 $19,100 $26,400 Settlement rate and expected rate of return 10 % 10 % 10 % Actual return on plan assets 18,400 21,870 24,000 Annual funding (contributions) 16,300 39,200 47,700 Benefits paid 14,200 16,100 21,400 Prior service cost (plan amended, 1/1/20) 161,700 Amortization of prior service cost 54,100 41,700 Change in actuarial assumptions establishesa December 31, 2021, projected benefit obligation of: 524,600 a. How to prepare a pension worksheet presenting all 3 years’ pension balances and activities.
The following data relate to Ramesh Company's defined benefit pension plan: ($ in millions) $690 69 55 118 13 20 90 Plan assets at fair value, January 1 Expected return on plan assets Actual return on plan assets Contributions to the pension fund (end of year) Amortization of net loss Pension benefits paid (end of year) Pension expense Required: Determine the amount of pension plan assets at fair value on December 31. (Enter your answers in millions. Amounts to be deducted should be indicated with a minus sign.) Pension Plan Assets Beginning of the year End of the year
Preparing a Pension Worksheet Levine Co. sponsored a defined benefit plan, which included January 1, 2020, balances of $3,000 and $2,880 in Plan Assets and Projected Benefit Obligation, respectively. During 2020, the company incurred $600 in service cost, made plan contributions of $126, and paid benefits to retirees for $90. The discount rate is 9% and the expected and actual rate of return on plan assets is 10%. Prepare a pension worksheet for 2020.Note: Use a negative sign for credits to accounts. Pension Worksheet Reported Net in Financial Statements Balance Sheet Income Statement PlanAssets PBO Net PensionAsset/Liability CashOutflow PensionExpense Balance, January 1, 2020 Service cost Interest cost Expected return Contributions to fund Benefit payments Balance, December 31, 2020
Pension data for the Denver Company include the following for the current calendar year:Discount rate, 8%Expected return on plan assets, 10%Actual return on plan assets, 9%Service cost, $200,000January 1:PBO $1,400,000ABO 1,000,000Plan assets 1,500,000Amortization of prior service cost 20,000Amortization of net gain 4,000December 31:Cash contributions to pension fund $220,000Benefit payments to retirees 240,000a) Determine pension expense for the year.b) Prepare the journal entries to record pension expense and funding for the year.
Presented below is pension information related to Fauci, Inc. for the year 2021:Service cost $480,000Interest on projected benefit obligation 200,000Interest on vested benefits 120,000Amortization of prior service cost due to increase in benefits 60,000Expected return on plan assets 90,000The amount of pension expense to be reported for 2021 isa. $590,000.b. $770,000.c. $860,000.d. $650,000.
II. Pension data for the Phoenix Company include the following for the current calendar year: Discount rate, 8% Expected return on plan assets, 10% Actual return on plan assets, 9% Service cost, $200,000 January 1: PBO ABO Plan assets Amortization of prior service cost Amortization of net gain December 31: Cash contributions to pension fund Benefit payments to retirees $1,400,000 1,000,000 1,500,000 20,000 4,000 $220,000 240,000 a) Determine pension expense for the year. b) Prepare the journal entries to record pension expenses and funding for the year.
Smith, Inc. has a pension plan with the following data available for 20X1 and 20X2: 20X1 20X2 Service cost $ 30,000 $ 34,000 Interest cost $ 18,000 $ 20,000 Actual return on plan assets $ 15,000 $ 21,600 Beginning of year plan assets $ 200,000 $ 240,000 Discount rate 8 % 8 % Expected return on plan assets 8 % 8 % The adjustment to OCI for gain or loss from the return on plan assets for 20X2 is: Multiple Choice $0. $2,400 gain. $2,400 loss. unknown from information provided.

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