Cullumber Corporation is a publicly traded company and follows IFRS. On December 31, 2022, Cullumber's financial records indicated the following information related to the company's defined benefit pension plan: Defined Benefit Obligation Pension Plan Assets $1,330,000 1,470,000 Cullumber Corporation's actuary provided the following information on December 31, 2023: Current year service cost $93,000 Prior service cost, granted Jan 1, 2023 173,000 Employer contributions for the year 95,000 Benefits paid to retirees 25,000 Expected return on assets 5% Actual return on assets Discount rate 6% 5% (a) Your answer is partially correct. Prepare a pension worksheet for Cullumber Corporation for 2023.

Cullumber Corporation is a publicly traded company and follows IFRS. On December 31, 2022, Cullumber's financial records indicated the following information related to the company's defined benefit pension plan: Defined Benefit Obligation Pension Plan Assets $1,330,000 1,470,000 Cullumber Corporation's actuary provided the following information on December 31, 2023: Current year service cost $93,000 Prior service cost, granted Jan 1, 2023 173,000 Employer contributions for the year 95,000 Benefits paid to retirees 25,000 Expected return on assets 5% Actual return on assets Discount rate 6% 5% (a) Your answer is partially correct. Prepare a pension worksheet for Cullumber Corporation for 2023.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 6RE

See similar textbooks

Similar questions

Blossom Corporation is a publicly traded company and follows IFRS. On December 31, 2022, Blossom's financial records indicated the following information related to the company's defined benefit pension plan: Defined Benefit Obligation Pension Plan Assets Blossom Corporation's actuary provided the following information on December 31, 2023: Discount rate Current year service cost Prior service cost, granted Jan 1, 2023 Employer contributions for the year Benefits paid to retirees Expected return on assets Actual return on assets (a) Balance, January 1, 2023 Current Service Cost $1,360,000 Prior Service Cost 1,520,000 Net Interest/Finance Cost Prepare a pension worksheet for Blossom Corporation for 2023. Asset Remeasurement Gain/Loss $80,000 Net Funding Entry 194,000 84,000 31,000 Employer Contributions to Pension Fund Balance, December 31, 2023 Defined Benefit Expense Entry - 2023 5% 6% Benefits Paid to Retirees from Pension Fund 5% Remeasurement Gain/Loss (OCI) < Annual Defined Benefit…
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 Pension Plan Assets $1,350,000 1.510,000 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% Prepare a pension worksheet for Crane Corporation for 2023. Balance, January 1, 2023 Current Service Cost Prior Service Cost Net Interest/Finance Cost Asset Remeasurement Gain/Loss Employer Contributions to Pension Fund Benefits Paid to Retirees from Pension Fund Defined Benefit Expense Entry-2023 Net Funding Entry Balance, December 31, 2023 General Journal Entries Annual Defined Remeasurement Gain/Loss (OCI)…
niki.1
Sunland Corporation is a private company with a defined benefit pension plan. The following information is available for Sunland for 2023: Opening balance, DBO Opening balance, plan assets Service cost Employer contributions paid evenly through 2023 Applicable interest or discount rate Actual return on plan assets Actuarial loss due to change in actuarial assumptions $188,000 179,000 eTextbook and Media 52,000 69,000 10% 22,500 12,500 Assuming that Sunland follows IFRS, determine the 2023 effect of the pension plan on defined benefit expense and the company's shareholders' equity. total defined benefit expense and a related decrease in the net income and retained earnings by $ 58400 and
Blossom Corp. sponsors a defined benefit pension plan for its employees. On January I, 2025, the following balances relate to this plan. Plan assets: $460,000 Projected benefit obligation: $606,500 Pension asset/liability: $146,500 Accumulated OCI (PSC): 104,200 Dr. As a result of the operation of the plan during 2025, the following additional data are provided by the actuary. Service cost: $93,500 Settlement rate, 10% Actual return on plan assets: $54,600 Amortization of prior service cost: $18,100 Expected return on plan assets: $51,600 Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions: $76,600 Contributions: $100,500 Benefits paid retirees: $84,300 Using the data above, compute pension expense for Blossom for the year 2025 by preparing a pension worksheet. (Enter all amounts as positive.)
Pumpkin Ltd. received the following information from its pension plan trustee concerning their defined benefit pension plan for the year ended December 31, 2023 January 1, 2023 December 31, 2023 Defined benefit obligation $3,500,000 $3,990,000 Fair value of plan assets 1,750,000 1,882,000 For 2023, the service cost is $210,000 and past service cost (effective Jan. 1) is $100,000. During 2023, Pumpkin contributed $595,000 to the plan. The discount rate is 8%. Pumpkin uses IFRS. a）Calculate the defined benefit expense to be reported in 2023. b) Prepare the journal entries to record the defined benefit expense and the employer’s contribution for 2023.
Pumpkin Ltd. received the following information from its pension plan trustee concerning their defined benefit pension plan for the year ended December 31, 2023 January 1, 2023 December 31, 2023 Defined benefit obligation $3,500,000 $3,990,000 Fair value of plan assets 1,750,000 1,882,000 For 2023, the service cost is $210,000 and past service cost (effective Jan. 1) is $100,000. During 2023, Pumpkin contributed $595,000 to the plan. The discount rate is 8%. Pumpkin uses IFRS. Instructions Prepare the journal entries to record the defined benefit expense and the employer’s contribution for 2023. IFRS
The Pension Expense in a pension plan for the year were recorded at $856,800. In addition, an amount of $161,400 had been debited to the Other Comprehensive Income account to record all actuarial losses for the year. In addition, the company had contributed a cash amount of $350,000 to the Plan Assets. What would have been the amount recorded as Pension expenses for 2019 if the company were reporting under ASPE? Select one: a. $856,800. b. $757,200. c. $161,400. d. $350,000. e. None of the above.
Wildhorse, Inc. received the following information from its pension plan trustee concerning the operation of the company's defined-benefit pension plan for the year ended December 31, 2021: January 1, 2021 December 31, 2021 Projected benefit obligation $2,480,000 $2,790,000 Fair value of plan assets 1,150,000 1,460,000 Accumulated benefit obligation 1,921,000 2,611,000 Accumulated OCI―(PSC) 532,000 296,000 The service cost component for 2021 is $137,500 and the amortization of prior service cost is $236,000. The company's actual funding of the plan in 2021 amounted to $500,000. The expected return on plan assets and the settlement rate were both 9%. (a) Determine the pension expense to be reported in 2021. Pension expense $ Save for Later (b) The parts of this question must be completed in order. This part will be available when you complete the part above.
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…
The actuary for the pension plan of Blossom Inc. calculated the following net gains and losses. Incurred during the Year (Gain) or Loss 2025 $302,850 2026 480,400 2027 (211,000) 2028 (289,700) Other information about the company's pension obligation and plan assets is as follows. Projected Benefit Plan Assets As of January 1, Obligation (market-related asset value) 2025 $4,004,500 $2,376,000 2026 4,531,500 2,190,900 2027 5,018,100 2,581,800 2028 4,241,640 3,061,000 Blossom Inc. has a stable labor force of 400 employees who are expected to receive benefits under the plan. The total service-years for all participating employees is 6,400. The beginning balance of accumulated OCI (G/L) is zero on January 1, 2025. The market-related value and the fair value of plan assets are the same for the 4-year period. Use the average remaining service life per employee as the basis for amortization. Prepare a schedule which reflects the minimum amount of accumulated OCI (G/L) amortized as a component…
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. January 1, 2025 December 31, 2025 Projected benefit obligation $1,490,000 $1,517,000 Market-related and fair value of plan assets 793,000 1,124,300 Accumulated benefit obligation 1,614,000 1,736,100 Accumulated OCI (G/L)-Net gain 0 (199,000) 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. Determine the amounts of the components of pension…