None During its first year of operations, a company granted employeesvacation privileges and pension rights estimated at a cost of$20,500 and $15,000. The vacations are expected to be taken inthe next year and the pension rights are expected to be paid inthe future 5-30 years. What is the total cost of vacation pay andpension rights to be recognized in the first year?a. $23,500b. $35,500c. $29,500d. $20,500

Step 1: Define Accrued ExpenseAccrued Expenses are those expenses acknowledged before its paid in…

Answered: During its first year of operations, a…

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 11RE

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Pinecone Company has plan assets of 500,000 at the beginning of the current year and expects to earn 12% on its plan assets during the year. Pinecones service cost is 230,000, and its interest cost is 55,000. Compute Pine-cones pension expense for the current year.
During its first year of operations, a company granted employees vacation privileges and pension rights estimated at a cost of $24,341 and $14,298. The vacations are expected to be taken in the next year and the pension rights are expected to be paid in the future 5-30 years. What is the total cost of vacation pay and pension rights to be recognized in the first year? a.$24,341 b.$14,298 c.$67,235 d.$38,639
During its first year of operations, a company granted employees vacation privileges and pension rights estimated at a cost of $24, 203 and $13,077. The vacations are expected to be taken in the next year, and the pension rights are expected to be paid in the future 5-30 years. What is the total cost of vacation pay and pension rights to be recognized in the first year? a. $13,077 b. $24, 203 c. $37, 280 d. $63,434
During its first year of operations, a company granted its employees vacation privileges and pension rights estimated at a cost of $25,288 and $16,715, respectively. The vacations are expected to be taken in the next year, and the pension rights are expected to be paid in the future 5-30 years. What is the total cost of vacation pay and pension rights to be recognized in the first year? a.$16,715 b.$25,288 c.$75,433 d.$42,003
ABC put up a qualified retirement plan approved by the BIR. It appointed B Corp. to administer the plan, which called for the payment of P200,000 to cover the retirement of employees for past services rendered and a yearly contribution of P50,000. The following amounts were paid for the first three years of the plan's operation: Contribution for Services Past Years P 100,000 60,000 40,000 Current Years First year. Second year. Third year.. P 50,000 50,000 50,000 1. The pension expense for the first year is a. P 150,000 b. Р 15,000 с. Р 60,000 d. P 105,000 2. The pension expense for the second year is a. P110,000 b. P 11,000 с. Р 56,000 d. P 66,000 3. The pension expense for the third year is а. Р 90,000 b. Р 9,000 с. Р 54,000 d. P 70,000
Company A has established a defined benefit plan for the employee. Annual payments under the plan are equal to highest lifetime salary multiplied by 2% multiplied by the number of years with the entity. On December 31, 2020, an employee had worked with the entity for 15 years. The current annual salary of the employee is P600,000. The employee is expected to retire in 10 years and the increase in salary is expected to be 4% per year. The discount rate is 10%. The employee is expected to live 8 years after retirement and shall receive the first annual pension payment one year after retirement. Compute for the ff: 1)Current service cost in 2021, 2022, 2023 and 2024 2)Interest expense in 2021, 2022, 2023 and 2024 3)PBO, Dec. 31,2021, Dec. 31,2022, Dec. 31,2023 and Dec. 31,2024
Company A has established a defined benefit plan indicating a plan formula for annual benefit equal to 2% multiplied by the number of years in service multiplied by the final year’s salary. The annual benefit is payable at the end of each year. An employee was hired by the entity on January 1,2000 and expected to retire on December 31, 2044. The employee’s retirement is expected to span 21 years. The employee’s final salary at retirement is expected to be P800,000 and the appropriate discount rate is 8%. On January 1, 2020, the plan formula was amended by increasing the percentage from 2% to 3%. The amendment was made retroactive to consider past service years. Compute for the ff: 1)PBO, Jan 1, 2020 (before amendment), Jan 1, 2020 (after amendment), Dec. 31,2020, Dec. 31, 2021 and Dec. 31 2022 2)Past service cost, 2020, 2021 and 2022 3)Current service cost, 2020, 2021 and 2022 4)Interest expense, 2020, 2021 and 2022
plan for an employee. Annual payments under the pension Jessabel Company has established a defined benefit pension plan are equal to the employee's highest lifetime salary The employee is expected to retire in 5 years and the salary multiplied by 3% multiplied by number of years with the On December 31, 2020, the employee had worked for Jessabe Problem 17-10 (IAA) entity. Company for 15 years. The current salary is P500,000 increases are expected to average 4% per year during th period. The employee is expected to live for 6 years after retirine and will receive the first annual pension payment one yea after retirement. The discount rate is 12%. Future value of 1 at 4% for 5 periods PV of an ordinary annuity of 1 at 12% for 6 periods PV of 1 at 12% for 5 periods 1.217 4.111 0.567 What is the projected benefit obligation on December 31, 2020? a. 638,269, b. 225,000 c. 524,460 d. 608,500
During year One of ABC companies’ operations, the employees earned vacation days as follow: They vest and carry forward. Employee Average Wage Vacation Days’ Vacation Days Per Day Earned This Year Taken This Year $200 12 12 240 23 16 280 25 7 Required: Make the journal entry for the liability to record unused vacation days expense earned in year One. Make the journal entry in year Two to record the use of all the vacation days with all employees receiving a 20% salary raise.
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1. General Motors offers this employee group term life insurance (GTLI) with a face amount of $100,000, General Motors paid $100 per $10,000 of face amount per year (i.e., $1000) for the GTLI. What will be the yearly personal income tax liability for this employee? a. $0 b. $150 c. $300 d. $15,000 e. $30,000 2. General Motors provides long term disability insurance for this employee. The contract states that this employee will earn $3000 per month ($36,000 per year) if they become disabled. General Motors paid the entire premium cost of $1000 per year. If this employee should become disabled, what would be their yearly personal income tax liability? A. $0 B. $300 C. $900 D. $3600 E. $10,800

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