At the end of 2020, the balances in the accounts related to the defined benefit pension plan of the Norton Company were as follows:Projected benefit obligation690,000Unrecognized prior service cost (remainder to be amortized over 12 years)37,750Unrecognized net lossPlan assets (at fair value)123,000722,625On 1/1/21, Norton amended the plan to provide an increased amount of pension benefits; the prior service cost resulting from thisamendment was $45,500. At 1/1/21, the average remaining service life of employees expected to receive benefits was 10 years.The following information relates to the year 2021:Service Cost70,625Settlement rate5%Expected rate of return on plan assets4%Plan contribution (at year-end)103,500Benefit payments to retirees (at year-end)90,750In 2021, Norton's actual return on plan assets was $27,500. Norton follows a policy of recognizing gains/losses on a delayed basisusing the "corridor approach". At the end of 2021, there was one change in the estimates and assumptions relating to computation of theprojected benefit obligation, resulting in a decrease in the PBO of $29,000.Required:Prepare Norton's pension worksheet, and prepare the journal entry that Norton would make to record the expense calculated.a.b.Which items will be reported on the financial statements for 2021 and where will they be reported?С.Prepare the pension note required for the 12/31/21 financial statements.

Pension- Pension is a retirement benefit that is paid to an employee and is guaranteed by the…

f 2020, the balances in the accounts related to the defined benefit pension plan of the Nortor Projected benefit obligation Unrecognized prior service cost (remainder to be amortized over 12 years) Unrecognized net loss Plan assets (at fair value) lorton amended the plan to provide an increased amount of pension benefits; the prior servic was $45,500. At 1/1/21, the average remaining service life of employees expected to receive g information relates to the year 2021: Service Cost Settlement rate Expected rate of return on plan assets 70,625 5% 4%

f 2020, the balances in the accounts related to the defined benefit pension plan of the Nortor Projected benefit obligation Unrecognized prior service cost (remainder to be amortized over 12 years) Unrecognized net loss Plan assets (at fair value) lorton amended the plan to provide an increased amount of pension benefits; the prior servic was $45,500. At 1/1/21, the average remaining service life of employees expected to receive g information relates to the year 2021: Service Cost Settlement rate Expected rate of return on plan assets 70,625 5% 4%

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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The following pension-related data pertain to Metro Recreation's noncontributory, defined benefit pension plan for 2021: ($ in 000s) Jan. 1 Dec. 31 Projected benefit obligation $ 4,300 $ 4,580 Accumulated benefit obligation 3,725 3,970 Plan assets (fair value) 4,830 5,275 Interest (discount) rate, 9% Expected return on plan assets, 10% Prior service cost—AOCI (from Dec. 31, 2020, amendment) 860 Net loss—AOCI 503 Average remaining service life: 10 years Gain due to changes in actuarial assumptions 42 Contributions to pension fund (end of year) 360 Pension benefits paid (end of year) 315 Required:Prepare a pension spreadsheet that shows the relationships among the various pension balances, shows the changes in those balances, and computes pension expense for 2021. (Enter credit amounts with a minus sign and debit amounts…
A company sponsors a defined benefit plan for 100 employees. On January 1, 2020 the company's actuary provided the following information. Accumulated other comprehensive (PCS). $152,800 Pension Plan assets (fair value and market -related asset value) 203,100 Accumulated benefit obligation 261,700 Projected Benefit obligation 373,200 The average remaining service period for the participating employees is 10 years. All employees are expected to receive benefits under the plan. On December 31,2020 the actuary calculated that the present value of future benefits earned for employee services rendered in the current year amounted to $55,900; the projected benefit obligation was $493,800 ; fair value of pension asset was $281,100; the accumulated benefit obligation amounted to $360,000. THe expected return on plan assets and the discount rate on the projected benefit obligation were both 10%. The acutal return on plan assets is $11,700. The company's current year's contribution to the…
Blossom Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances related to this plan. Plan assets (market-related value) $480,000 Projected benefit obligation 650,000 Pension asset/liability 170,000 Cr. Prior service cost 80,000 Net gain or loss (debit) 85,000 As a result of the operation of the plan during 2020, the actuary provided the following additional data for 2020. Service cost $99,000 Settlement rate, 9%; expected return rate, 10% Actual return on plan assets 42,000 Amortization of prior service cost 25,000 Contributions 124,000 Benefits paid retirees 82,000 Average remaining service life of active employees 10 years Using the preceding data, compute pension expense for Blossom Corp. for the year 2020 by preparing a pension worksheet that shows the journal entry for pension expense. (Enter all amounts as positive.) PLEASE FIX THE INCORRECT…
Wildhorse Company provides the following information about its defined benefit pension plan for the year 2020. Service cost Contribution to the plan Prior service cost amortization Actual and expected return on plan assets Benefits paid Plan assets at January 1, 2020 Projected benefit obligation at January 1, 2020 Accumulated OCI (PSC) at January 1, 2020 Interest/discount (settlement) rate Items Pension Experse Balance, January 1, 2020 91200 Service cost 61801 Interest cost T 62800 Actual return 9800 Amortization of PSC Contributions Benefits Journal entry for 2020 Accumulated OCI, Dec 31, 2019 Balance, Dec 31, 2020 eTextbook and Media List of Accounts $91,200 104,700 9,800 62,800 40,500 632,600 686,700 152,100 9% eTextbook and Media 100003 Dr. Dr. cr. Cash Debit 104700 Prepare the journal entry recording pension expense. (Credit account titles are automatically indented when amount is entered. Do na indent manually. If no entry is required, select "No Entry" for the account titles and…
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Determining Pension Expense The following information pertains to Qdobe Corporation’s defined benefit pension plan for 2020. Service cost $512,000 Actual and expected gain on plan assets 112,000 Actuarial loss on PBO incurred during 2020 128,000 Amortization of unrecognized prior service cost 16,000 Annual interest on pension obligation 160,000 What amount should Qdobe report as pension expense in its 2020 income statement? Assume no beginning balance in Accumulated OCI—Pension Gain/Loss. Pension expense, 2020
D
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