Cagayan Company provided the followinginformation for the current year:January 1Projected benefit obligation3,500,000During the yearPension benefits paid to retired employees250,000Past service cost500,000Actuarial loss200,000December 31Projected benefit obligation5,000,00010% discountrateWhat amount was reported as currentservice cost by Cagayan Company ?

Correct answer is 700,000 Projected benefit obligation at year end = Opening balance of PBO +…

Answered: Cagayan Company provided 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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Louie Company has a defined benefit pension plan. On December 31 (the end of the fiscal year), the company received the PBO report from the actuary. The following information was included in the report: ending PBO, $110,000; benefits paid to retirees, $10,000; interest cost, $8,000. The discount rate applied by the actuary was 8%. What was the service cost for the year? O 2,000 12,000 O 18,000 O 92,000
Pension data for the Broncos 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 240,000Required:1) Determine pension expense for the year. Show your calculation. If not, no credit.2) Prepare the journal entries to record pension expense and funding for the year. 3) Compute the ending balance of PBO (balance on 12/31).
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.
9. How much is the annual retirement benefit expense for the year ended December 31, 2021? ₱ 312,902 ₱ 104,301 ₱ 1,390,675 ₱ 417,203
9. How much is the annual retirement benefit expense for the year ended December 31, 2021?
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PQR Company provided the following information for the current year:· Projected Benefit Obligation, January 1: 3,500,000· Pension benefits paid to retired employees: 250,000· Past service costs: 500,000· Actuarial losses arising from remeasurement of projected benefit obligation: 200,000· Projected Benefit Obligation, December 31: 5,000,000Discount rate based on high-quality corporate bonds is 10%. How much is current service cost during the year?
The following information related to the Postretirement Benefits (health) for the Union Company on 12/31/2020: Expected postretirement Benefits Obligation (EPBO) $ 800,000, and the Accumulated Postretirement Benefits Obligation (APBO) is $400,000. Attribution period 20 years. Number of years employees worked to date 10 years. Interest rate 10%. Required: a. Calculate the EPBO at end of 2021. b. Calculate accumulated postretirement benefits (APBO) for 2021. c. Analyze the increase in 2021 APBO.
Greg Company provides retirement benefits to employees through defined contribution plan. The plan provides that Greg Company shall contribute annually 9% of gross payroll to a funding agency. In addition, the entity is also required to contribute 6% of annual sales exceeding 15,000,000. During 2020, gross payroll of the company was P 6,500,000 and total sales amounted to P 32,000,000. How much is the retirement benefit expense taken to profit or loss for the year 2020? Assuming that during 2020, the company contributed P 1,700,000 to the trustee. How much is the prepaid or accrued benefit arising from the transaction?
The following summary data for the payroll period ended December 27, 2021, are available for Cayman Coating Company: Gross pay FICA tax withholdings Income tax withholdings Group hospitalization insurance Employee contributions to pension plan Total deductions Net pay $ 93,000 ? 15,480 1,650 ? 25,455 ? Additional information: • For employees, FICA tax rates for 2021 were 7.65% on the first $142,800 of each employee's annual earnings. However, no employees had accumulated earnings for the year in excess of the $142,800 limit. • For employers, FICA tax rates for 2021 were also 7.65% on the first $142,800 of each employee's annual earnings. • The federal and state unemployment compensation tax rates are 0.6% and 5.4%, respectively. These rates are levied against the employer for the first $7,000 of each employee's annual earnings. Only $15,600 of the gross pay amount for the December 27, 2021, pay period was owed to employees who were still under the annual limit. b-2. Assuming that…
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JDS Shipyard’s projected benefit obligation, accumulated benefit obligation, and plan assets were $40 million, $30 million, and $25 million, respectively, at the end of the year. What, if any, pension liability must be reported in the balance sheet? What would JDS report if the plan assets were $45 million instead?

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