**U.S. Metallurgical Inc. Financial Statement Analysis**At December 31, 2020, U.S. Metallurgical Inc. reported the following balances in its financial statements and disclosure notes:- **Plan Assets:** $400,000- **Projected Benefit Obligation:** $320,000For 2021, U.S.M.'s actuary determined the following:- **Service Cost:** $60,000- Both the expected and actual rate of return on plan assets is 9%- The interest (discount) rate is 5%- U.S.M. contributed $120,000 to the pension fund by the end of 2021- Retirees were paid $44,000 from plan assets**Instructions:**Please answer the following questions, entering your responses in thousands (e.g., 10,000 should be entered as 10):1. What is the pension expense at the end of 2021?2. What is the projected benefit obligation at the end of 2021?3. What is the plan assets balance at the end of 2021?4. What is the net pension asset or net pension liability at the end of 2021?5. Prepare journal entries to record the (a) pension expense, (b) funding of plan assets, and (c) retiree benefit payments.**Guidance:**Complete the questions by entering your answers in the provided sections.

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Answered: Ch U.S. Metallurgical Inc. reported the…

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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On January 1, 2021, Ka Leody Inc. entered into a long-term construction contract with fixed contract price of P 5,000,000. Ka Leody billed its client as follows: 30% during 2021, 40% during 2022 and the remainder at the end of project completion. The following data were provided by the cost accountant of the Ka Leody Inc: 2020 2021 2022 Cumulative cost incurred as of the end of the year P 2,200,000 P 3,600,000 P 4,800,000 Estimated remaining cost to complete at the end of the year P 3,300,000 P 900,000 What is the revenue to be recognized on December 31, 2021 under percentage of completion method ?
The Leto Construction Company began work on a $15,000 contract on 1/1/22. Planned completion was in 2024. The Percentage-of Completion method is used. Given the following at 12/31/22: Costs incurred to date Estimated costs to complete Billings to date Collections to dato December 31, 2022 $2,500 9,500 4,000 3,800 The balance sheet location and the net amount of the 12/31/22 Combined CIP and Billings accounts are: Select one: a. Current Liability of $1,500 O b. Current Liability of $200 O c. Current Asset of $1,500 d. Current Liability of $875
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Subject : Accounting
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U.S. Metallurgical Inc. reported the following balances in its financial statements and disclosure notes at December 31, 2015. Plan assets $ 400,000 Projected benefit obligation 320,000 U.S.M.’s actuary determined that 2016 service cost is $60,000. Both the expected and actual rate of return on plan assets are 9%. The interest (discount) rate is 5%. U.S.M. contributed $120,000 to the pension fund at the end of 2016, and retirees were paid $44,000 from plan assets. Required: Determine the following amounts at the end of 2016. 1. Pension expense 2. Projected benefit obligation 3. Plan assets 4. Net pension asset or net pension liability 5. Prepare journal entries to record the pension expense, funding of plan assets, and retiree benefit payments.

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