Garcia Co. has a PBO balance on January 1 of $73,000. The actuaries provided the following information: PBO December 31 balance, $70,000; interest cost, $6,500; actuarial gain on PBO, $12,000; prior service cost amendment (causing additional obligations) $4,000; benefits paid to retirees, $9,500 Required Compute service cost for the year. $

Garcia Co. has a PBO balance on January 1 of $73,000. The actuaries provided the following information: PBO December 31 balance, $70,000; interest cost, $6,500; actuarial gain on PBO, $12,000; prior service cost amendment (causing additional obligations) $4,000; benefits paid to retirees, $9,500 Required Compute service cost for the year. $

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

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 25E: Koolman Construction Company began work on a contract in 2019. The contract price is 3,000,000, and...

See similar textbooks

Similar questions

The following data are for Guava Company's retiree health care plan for the current calendar year. Number of employees covered Years employed as of January 1 Attribution period EPBO, January 1 EPBO, December 31 Interest rate Funding and plan assets Multiple Choice O O What is the service cost to be included in the current year's postretirement benefit expense? (Round your answer to the nearest whole dollar.) $3,200. $3,456. $3,900. 5 4 (each) 20years $3,306. $ 64,000 $69,120 8% None
The following data are for Guava Company's retiree health care plan for the current calendar year. Number of employees covered Years employed as of January 1 Attribution period EPBO, January 1 EPBO, December 31 Interest rate Funding and plan assets None What is the service cost to be included in the current year's postretirement benefit expense? O $3,200. $4,000. 5 4(each) 20years O $3,180. O $3,000. $ 60,000 $ 63,600 6%
Pension data for Carolina Consulting Company included the following for the current calendar year: Service cost PBO, January 1 Plan assets, January 1 Amortization of prior service cost Amortization of net loss Discount rate, 6% Expected return on plan assets, Actual return on plan assets, 10% $116,000 830,000 880,000 6,800 2,800 8% Required: Determine pension expense for the year. (Amounts to be deducted should be indicated with a minus sign.) Pension Expense Pension expense
Apple Plumbing reports actual returns on plan assets of $200,000, while the expected return was $181,000. In addition, an employee wellness program has resulted in changes in actuarial assumptions that result in an increase in the PBO of $24,000. What is the journal entry to record the change in actuarial assumptions? Group of answer choices Pension Plan Assets 5000 Pension Plan Assets 5000 OCI - Actuarial Gains/Losses 24,000 Projected Benefit Obligation 24,000 Pension Plan Assets 24,000 OCI - Pension Plan Gains/Losses 24,000 Pension Plan Assets 43,000 OCI - Actuarial Gains/Losses 43,000
On December 31, 2019, Tyre Corporation received the DBO report from the actuary. The following information was included in the report: ending DBO, $1,100,000; benefits paid to retirees, $100,000; interest cost, $80,000. The discount rate applied by the actuary was 8%. There was no actuarial revaluation required nor any past service cost. What was the service cost for the year? Select one: a. $20,000. b. $920,000. c. $180,000. d. $120,000. e. None of the above.
Lender Company provides postretirement health care benefits to employees who provide at least 10 years of service and reach the age of 65 while in service. On January 1 of the current calendar year, the following plan-related data were available. APBO balance Fair value of plan assets Average remaining service period to retirement Average remaining service period to full eligibility Postretirement Benefit Expense Service cost Interest cost Return on plan assets Amortization of prior service cost Postretirement benefit expense On January 1 of the current year, Lender amends the plan to provide dental benefits. The actuary determines that the cost of making the amendment increases the APBO by $11,000,000. Management chooses to amortize this amount on a straight- line basis. The service cost is $31,000,000. The appropriate interest rate is 10%. ($ in millions) Required: Calculate the postretirement benefit expense for the current year. Note: Enter your answers in millions rounded to 2…
Hw.121.
Koolman Construction Company began work on a contract in 2019. The contract price is 3,000,000, and the company determined that its performance obligation was satisfied over time. Other information relating to the contract is as follows: Required: 1. Compute the gross profit or loss recognized in 2019 and 2020. 2. Prepare the appropriate sections of the income statement and ending balance sheet for each year.
During the year 2019, Height Cons began work on a contract for 3,700,000. Costs incurred during the year 1,800,000. Estimated costs to complete as of December 31= 1,200,000 Billings during the year1,650,000 Collections during the year 975,000 It uses the percentage-of-completion method. Find reporting gross profit?
Fink Insurance collected premiums of $18,300,000 from its customers during the current year. The adjusted balance in the Deferred premiums revenue account increased from $5.0 million to $9.3 million dollars during the year. What is Fink's revenue from insurance premium recognized for the current year? Multiple Choice $9,000,000. $22,600.000. $14,000,000
The following data are for Guava Company's retiree health care plan for the current calendar year. Number of employees covered Years employed as of January 1 Attribution period EPBO, January 1 EPBO, December 31 Interest rate Funding and plan assets Multiple Choice General Journal Postretirement benefit expense APBO What is the correct entry to record postretirement benefit expense for the current year? Note: Do not round intermediate calculations and round your answers to the nearest whole dollar. General Journal Postretirement benefit expense APBO General Journal Postretirement benefit expense APBO General Journal Postretirement benefit expense 5 4 (each) years 20 Cash $ 56,000 $ 61,040 9% None Debit Credit 3,060 3,060 Debit Credit 4,100 4,100 Debit Credit 4,060 4,060 Debit Credit 4,060 4,060
Rahul