**Electronic Distribution's Defined Benefit Pension Plan Overview****Characteristics of the Plan During 2021:**| Description | Amount ($ millions) ||------------------------------------------|---------------------|| PBO balance, January 1 | 480 || Plan assets balance, January 1 | 300 || Service cost | 45 || Interest cost | 36 || Gain from change in actuarial assumption | (20) || Benefits paid | 68 || Actual return on plan assets | 60 || Contributions 2021 | 160 |**Additional Information:**- The expected long-term rate of return on plan assets was 8%.- No OCI balances related to pensions on January 1, 2021.- At the end of 2021, the pension formula was amended, leading to a prior service cost of $12 million.**Requirements:**1. **Calculate the Pension Expense for 2021:** - Include factors such as pension expense, gains or losses, prior service cost, and funding.2. **Prepare the Journal Entries for 2021:** - Record entries for pension expense, gains or losses, prior service cost, funding, and payment of benefits.3. **Report Amount on Balance Sheet:** - Determine if Electronic Distribution reports a net pension asset or net pension liability in its 2021 balance sheet.**Instructions:**- Enter answers in the provided tabs and ensure the amounts are in millions (i.e., 10,000,000 should be entered as 10).

Net interest cost=Interest cost-Interest income

Answered: Check i ectronic Distribution has a…

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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Pension data for Barry Financial Services Incorporated include the following: Discount rate, 7% Expected return on plan assets, 13% Actual return on plan assets, 12% Service cost, 2024 January 1, 2024: Projected benefit obligation Accumulated benefit obligation Plan assets (fair value) Prior service cost- AOCI (2024 amortization, $25) Net gain- AOCI (2024 amortization, $12) There were no changes in actuarial assumptions. ($ in thousands) $ 490 3,200 2,900 3,300 415 510 December 31, 2024: Cash contributions to pension fund, December 31, 2024 Benefit payments to retirees, December 31, 2024 Required: 1. Determine pension expense for 2024. 425 450 2. Prepare the journal entries to record (a) pension expense, (b) gains and losses (if any), (c) funding, and (d) retiree benefits for 2024.
None
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 $5,000. Broncos' tax rate is 30% for all years and the company expects to report taxable income in all future years. a) Compute taxable income. b) Prepare the journal entry to record income tax expense, deferred income tax, and income tax payable for 20x1. c) Compute net income for 20x1.
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Electronic Distribution has a defined benefit pension plan. Characteristics of the plan during 2024 are as follows: PBO balance, January 1 Plan assets balance, January 1 Service cost Interest cost Gain from change in actuarial assumption Benefits paid Actual return on plan assets Contributions 2024 ($ millions) $600 300 85 65 28 (60) 13 75 The expected long-term rate of return on plan assets was 6%. There were no AOCI balances related to pensions on January 1, 2024, but at the end of 2024, the company amended the pension formula, creating a prior service cost of $16 million. Required: 1. Calculate the pension expense for 2024. 2. Prepare the journal entries to record (a) pension expense, (b) gains or losses, (c) prior service cost, (d) funding, and (e) payment of benefits for 2024. 3. What amount will Electronic Distribution report in its 2024 balance sheet as a net pension asset or net pension liability? Complete this question by entering your answers in the tabs below. Required 1…
rane importers provides the following pension plan Fair value of pension plan assets, January 1, 2025 Fair value of pension plan assets, December 31, 2025 Contributions to the plan in 2025 Benefits paid retirees in 2025 Tormation. Actual return on plan assets for 2025 $ $2,575,000 2,914,000 299,000 366,000 From the data above, compute the actual return on the plan assets for 2025.
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Refer to the situation described below Assume Electronic Distribution prepares its financial statements according to IFRA. Also, assume that 10% is the current interest rate on high- quality corporate bonds. Sin millions PBO balance January 1 480 Plan assets balance January 1 300 Service cost 75 Interest cost 45 Gain from change in an actuarial assumption 22 Benefits paid (36) Actual return on plan assets 20 Contributions 2021 60 Calculate the net pension cost for 2021, separating its components into appropriate categories for reporting. Prepare the journal entries to record (a) the components of net pension cost, (b)gains or losses, (c) past service cost, (d) funding, and (e) payment of benefits for 2021. What amount will Electronic Distribution report in its 2021 balance sheet as a net pension asset or net pension liability?
At the beginning of current year, Maximus Company hada projected benefit obligation of P10,000,000 and a pension The entity provided the following information related to the Problem 18-20 (IAA) fund with a fair value of P9,200,000. pension plan during the current year: Current service cost Actual return on the pension fund Benefits paid to retirees Contribution to the pension fund Discount rate Expected return on pension fund 1,200,000 250,000 1,100,000 1,050,000 10% 1. What is the pension expense for the current year? a. 1,272,000 b. 2,100,000 c. 1,850,000 d. 1,050,000 2. What is the remeasurement gain or loss for the current year? a. 578,000 gain b. 578,000 loss c. 250,000 gain d. 250,000 loss 3. What is the pension asset or liability at year-end? a. 1,600,000 liability b. 1,600,000 asset 800,000 liability d. c. 800,000 asset
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 20X1 is: Multiple Choice $0. $1,000 gain. $1,000 loss. unknown from information provided.
Pension data for Barry Financial Services Incorporated include the following: Discount rate, 7% Expected return on plan assets, 12% Actual return on plan assets, 11% Service cost, 2024 January 1, 2024: Projected benefit obligation Accumulated benefit obligation Plan assets (fair value) Prior service cost- AOCI (2024 amortization, $50) Net gain- AOCI (2024 amortization, $12) There were no changes in actuarial assumptions. Complete this question by entering your answers in the tabs below. Required 1 Required 2 December 31, 2024: Cash contributions to pension fund, December 31, 2024 Benefit payments to retirees, December 31, 2024 Required: 1. Determine pension expense for 2024. 2. Prepare the journal entries to record (a) pension expense, (b) gains and losses (if any), (c) funding, and (d) retiree benefits for 2024. Pension expense ($ in thousands) $ $ 480 0.0 3,150 2,850 3,250 410 500 Determine pension expense for 2024. Note: Amounts to be deducted should be indicated with a minus sign.…

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