Crane Corporation is a publicly traded company and follows IFRS. On December 31, 2022. Crane's financial records indicated the following information related to the company's defined benefit pension plan Defined Benefit Obligation $1.350.000 1510,000 Pension Plan Assets Crane Corporation's actuary provided the following information on December 31, 2023 Current year service cost $84,000 Prior service cost, granted Jan 1, 2023 189,000 Employer contributions for the year 88,000 Benefits paid to retirees 28,000 Expected return on assets 5% Actual return on assets Discount rate 6% 5% (a) Prepare a pension worksheet for Crane Corporation for 2023 Balance, January 1, 2023 Current Service Cost Prior Service Cost Net Interest/Finance Cost Remeasurement Gain/Loss (OC) General Journal Entries Annual Defined Benefit Expense Net Defined Liability Cash Asset Defined Benefit Obligation Memo Record Plan Assets

Crane Corporation is a publicly traded company and follows IFRS. On December 31, 2022. Crane's financial records indicated the following information related to the company's defined benefit pension plan Defined Benefit Obligation $1.350.000 1510,000 Pension Plan Assets Crane Corporation's actuary provided the following information on December 31, 2023 Current year service cost $84,000 Prior service cost, granted Jan 1, 2023 189,000 Employer contributions for the year 88,000 Benefits paid to retirees 28,000 Expected return on assets 5% Actual return on assets Discount rate 6% 5% (a) Prepare a pension worksheet for Crane Corporation for 2023 Balance, January 1, 2023 Current Service Cost Prior Service Cost Net Interest/Finance Cost Remeasurement Gain/Loss (OC) General Journal Entries Annual Defined Benefit Expense Net Defined Liability Cash Asset Defined Benefit Obligation Memo Record Plan Assets

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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FINANCIAL ACCOUNTING II Lee Electronics, Inc. reported the following information related to its defined- benefit pension plan at December 31, 2021: Projected benefit obligation ..... $320,000 $400,000 Pension plan assets, at market value ...... The plan was subject to the following activity during 2022: a) Lee's actuary confirmed that the service cost for the plan during the year was $60,000. b) The applicable interest rate for pension matters was 5%. c) Early in 2019, an amendment to the plan resulted in prior service cost of $40,000. Each year, one-tenth of this cost is amortized to expense. d) The pension plan asset balance at December 31st, at market value, was $445,000. Lee contributed $30,000 to the fund in 2022, and plan participants received $20,000 in benefits during the year. There were no significant actuarial gains or losses for the plan during 2022. Based on the above information, determine Lee Electronics, Inc.'s pension expense for the year ended December 31, 2022.…
Oriole Company received the following selected information from its pension plan trustee concerning the operation of the company's defined benefit pension plan for the year ended December 31, 2025. SEE ATTACHED IMAGE The service cost component of pension expense for employee services rendered in the current year amounted to $77,000 and the amortization of prior service cost was $122,100. The company's actual funding (contributions) of the plan in 2025 amounted to $252,000. The expected return on plan assets and the actual rate were both 10%; the interest/discount (settlement) rate was 10%. Accumulated other comprehensive income (PSC) had a balance of $1,221,000 on January 1, 2025. Assume no benefits paid in 2025. Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2025. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles…
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Subject: accounting
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Foster Corporation received the following report from its actuary at the end of the year: December 31, 2014 December 31, 2015 Projected benefit obligation $2,000,000 $2,200,000 Accumulated benefit obligation 1,380,000 1,440,000 Fair value of pension plan assets 1,300,000 1,480,000 The amount reported as the pension liability at December 31, 2014 is a. 0 b. 80,000 c. 620,000 d. 700,000 The amount reported at the pension liability at December 31, 2015 is a. 2,200,000 b. 1,480,000 c. 720,000 d. 760,000
The following information pertains to LL Marshall Corporation's defined benefit pension plan: 2024 Beginning 2025 Beginning balances, $ (7,600) 7,300 760 $ 880 (S in thousands) Projected benefit obligation Plan assets Prior service cost-AOCI Net loss-AOCI balances $ (8,104) 7,936 720 $ 960 At the end of 2024, LL Marshall contributed $600 thousand to the pension fund and benefit payments of $754 thousand were made to retirees. The expected rate of return on plan assets was 12%, and the actuary's discount rate is 8%. There were no changes in actuarial estimates and assumptions regarding the PBO. What is the 2024 service cost for LL Marshall's plan?
USLM Inc. has a defined benefit pension plan. At the end of the year 20X4, the pension fund assets were $7,860,000 and the defined benefit obligation was $7,345,000. Invoking the asset ceiling caps the net defined benefit asset at $353,000. Required: Prepare the journal entry to correctly recognize the net defined benefit asset. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record the adjusting entry for net defined benefit asset. Note: Enter debits before credits. >
D
Cullumber Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2025 in which no benefits were paid. 1. 2. 3. 4. The actuarial present value of future benefits earned by employees for services rendered in 2025 amounted to $55,700. The company's funding policy requires a contribution to the pension trustee amounting to $144,323 for 2025. As of January 1, 2025, the company had a projected benefit obligation of $894,700, an accumulated benefit obligation of $792,500, and a debit balance of $402,000 in accumulated OCI (PSC). The fair value of pension plan assets amounted to $601,400 at the beginning of the year. The actual and expected return on plan assets was $54,300. The settlement rate was 9%. No gains or losses occurred in 2025 and no benefits were paid. Amortization of prior service cost was $49,800 in 2025. Amortization of net gain or loss was not required in 2025.
Defined Benefit Pension Plan Skywalker Inc. is a publicly traded company that follows IFRS. On November 30, 2019, Skywalker's accounting records included the following information: Defined benefit obligation $ 1,408,599 Pension plan assets $ 1,531,086 Skywalker's actuary provided the following information about its defined benefit pension plan for the year ended November 30, 2020: Current year service cost $ 84,516 Prior service cost, granted December 1, 2019 $ 169,032 Employer contributions for the year $ 91,865 Benefits paid to retirees $ 28,172 Expected return on assets 6% Actual return on assets 7% Discount rate 6% Defined benefit obligation at November 30, 2020 $ 1,725,036 Required: a) Prepare a pension worksheet for Skywalker's pension plan for the year ended November 30, 2020. b) Prepare the journal…
Gurung Co. has a noncontributory, defined benefit pension plan adopted on 1 January 20X5. On 31 December 20X5, the following information is available: For accounting purposes • Interest rate used for pension amounts, 5%. • Past service cost, granted as of 1 January 20X5, $210,000. This is also the defined benefit obligation on 1 January. • Current service cost for 20X5, appropriately measured for accounting purposes, $68,000. For funding purposes Funding was $100,000 in 20X5 for all pension amounts. The payment was made on 31 December. • Actual earnings on fund assets, zero. . Required: 1. Prepare a pension spreadsheet that summarizes relevant pension data for 20X5. 20X5 Beginning - PSC CSC Interest Funding Pension Obligation $ (210,000) (68,000)✔ (10,500)✓ $ (288,500) Answer is complete and correct. Net Pension Asset/Liab. Plan Assets 100,000 $ 100,000✔ Pension Expense $ 210,000✔ 68,000✔ 10,500✔ 288,500✔ (288,500)✔✔ 100,000✔ $ (188,500)✔ $ Accumulated OCI