Actuary and trustee reports indicate the following changes in the PBO and plan assets of Mahomes Industries during 2024:Prior service cost at January 1, 2024, from plan amendment at the beginning of 2021(amortization: $7 million per year)Net loss-AOCI at January 1, 2024 (previous losses exceeded previous gains)Average remaining service life of the active employee groupActuary's discount rate($ in millions)PBOBeginning of 2024Service costInterest cost, 7%Loss (gain) on PBOLess: Retiree benefitsEnd of 2024Req 1AReq 1B and 2to 4$ 9008363(17)(44)$ 985Plan AssetsComplete this question by entering your answers in the tabs below.Pension expenseBeginning of 2024Return on plan assets, 8% (10%expected)Pension ExpenseCash contributionsLess: Retiree benefitsEnd of 2024Required:1-a. Determine Mahomes's pension expense for 2024.1-b, 2. to 4. Prepare the appropriate journal entries to record the pension expense, to record any 2024 gains and losses, to record thecash contribution to plan assets and to record retiree benefits.$ 49 million$ 230 million10 years.7%$ 7005693(44)$ 805Determine Mahomes's pension expense for 2024.Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 shouldbe entered as 10).

Pension refers to the amount that is paid by the company or government to the person who stopped…

e cost at January 1, 2024, from plan amendment at the beginning of 2021 ion: $7 million per year) I at January 1, 2024 (previous losses exceeded previous gains) ining service life of the active employee group _scount rate ans) 0 = 2024 =t, 7% on PBO ee benefits $ 900 83 63 (17) (44) $985 Plan Assets Beginning of 2024 Return on plan assets, 8% (10% expected) Cash contributions Less: Retiree benefits End of 2024 $ 49 millio $ 230 millio 10 years 7%

e cost at January 1, 2024, from plan amendment at the beginning of 2021 ion: $7 million per year) I at January 1, 2024 (previous losses exceeded previous gains) ining service life of the active employee group _scount rate ans) 0 = 2024 =t, 7% on PBO ee benefits $ 900 83 63 (17) (44) $985 Plan Assets Beginning of 2024 Return on plan assets, 8% (10% expected) Cash contributions Less: Retiree benefits End of 2024 $ 49 millio $ 230 millio 10 years 7%

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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) Maytag Service Co. reported the following for its defined-benefit pension plan for 2021: Settlement rate 3% Expected rate of return on plan assets 6.5% Service cost $750,000 Actual return on plan assets $460,000 Benefits paid to retirees $485,000 Average remaining service life of existing employees 10 years Projected…
Fair value of plan assets 4,750,000Unamortized past service cost 1,250,000Projected benefit obligation 5,500,000Unrecognized actuarial gain 850,000The transactions for the current year relating to the defined benefit plan are as follows:Current service cost 925,000Discount rate 6%Actual return on plan assets 485,000Contribution to the plan 1,350,000Benefits paid to retirees 995,000Increase in projected benefit obligation due to changes in actuarial assumptions 150,000Effective in the current year, the entity has applied the provisions of revised PAS 19 in relation to the definedbenefit plan.REQUIRED:15. Prepare journal entry to recognize the transitional effect of adopting revised PAS 19.16. Determine the employee benefit expense for the current year.17. Compute the remeasurement related to the defined benefit plan.18. Prepare journal entry to record the employee benefit expense.19. Compute for the Fair Value Plan Asset (FVPA) as of December 31.20. Compute for the projected benefit…
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Benefit obligation, 1 January 20X6 Current service cost for 20X6 SFP Accrued net OPEB liability, 1 January, 20X6 Accumulated OCI, OPEBS, 1 January 20X6, loss Fund assets, 1 January 20X6 Contributions to the benefit fund for 20X6-paid 1 April Benefit payments to retired employees for 20X6 evenly over year Actual return on fund assets Yield rate on long-term corporate bonds $ 77,000 20,000 15,000 31,000 62,000 9,800 16,000 350 7 % With this information, how would i calculate projected obligation? OPEB expense? Net OPEB? Accumulate OCI OPEB?
Pension data for the Denver Company include the following for the current calendar year:Discount rate, 8%Expected return on plan assets, 10%Actual return on plan assets, 9%Service cost, $200,000January 1:PBO $1,400,000ABO 1,000,000Plan assets 1,500,000Amortization of prior service cost 20,000Amortization of net gain 4,000December 31:Cash contributions to pension fund $220,000Benefit payments to retirees 240,000a) Determine pension expense for the year.b) Prepare the journal entries to record pension expense and funding for the year.
On January 1, 2020, McGee Co. had the following balances: Projected benefit obligation $6,400,000 Fair value of plan assets 6,000,000 Other data related to the pension plan for 2019: contributions to the plan 400,000 Benefits paid 350,000 On 1/1/2020, prior service cost was granted having a present value of 150,000 Actual return on plan assets 430,000 Settlement rate 9% Expected rate of return 7% Amortized Prior Service cost…
Information regarding the defined benefit pension plan of Neo Products included the following for 2024 ($ in millions):Plan assets, January 1$ 210Plan assets, December 31315 Return on plan assets30Employer contributions to the pension plan (end of year)126What amount of retiree benefits was paid at the end of 2024? Multiple Choice$51 million$21 million$72 million$105 million
Pension data for Sterling Properties include the following: Service cost, 2024 Projected benefit obligation, January 1, 2024 Plan assets (fair value), January 1, 2024 Prior service cost-AOCI (2024 amortization, $8) Net loss-AOCI (2024 amortization, $2) Interest rate, 5% Expected return on plan assets, 9% Actual return on plan assets, 10% Required: ($ in thousands) $ 125 660 700 90 111 Assume Sterling Properties prepares its financial statements according to International Financial Reporting Standards (IFRS). The interest rate on high-grade corporate bonds is 5%. Determine the net pension cost. Note: Enter your answer in thousands (i.e., 10,000 should be entered as 10). Answer is complete but not entirely correct. Net pension cost $ 105 thousand Assessment Tool iFrame
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2 ($ in thousands) Discount rate, 7% Expected return on plan assets, 8% Actual return on plan assets, 7% Service cost, current year January 1, current year: Projected benefit obligation Accumulated benefit obligation Plan assets (fair value)" Prior service cost- AOCI (current year amortization, $30) Net gain- AOCI (current year amortization, $12) There were no changes in actuarial assumptions. December 31, current year: Cash contributions to pension fund, December 31, current year Benefit payments to retirees, December 31, current year Required: 1. Determine pension expense for the current year. $ 500 3,250 2,950 3,350 420 520 435 460 2. Prepare the journal entries to record (a) pension expense, (b) gains and losses (if any), (c) funding, and (d) retiree benefits for the current year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine pension expense for the current year. Note: Amounts to be deducted should be indicated with a minus sign.…