Hicks Cable Company has a defined benefit pension plan. Three alternative possibilities for pension-related data at January 1, 2024 are shown below: Case 1 Net loss (gain)-AOCI, January 1 $ 340 ($ in thousands) Case 2 $ (410) Case 3 281 2024 loss (gain) on plan assets (31) (28) 6 2024 loss (gain) on PBO (43) 36 Accumulated benefit obligation, January 1 Projected benefit obligation, January 1 (3,150) (2,750) (3,510) (2,870) 3,000 2,900 (290) (1,650) (1,900) 1,750 10 12 7 Fair value of plan assets, January 1 Average remaining service period of active employees (years) Required: 1. For each independent case, calculate any amortization of the net loss or gain that should be included as a component of pension expense for 2024. 2. For each independent case, determine the net loss-AOCI or net gain-AOCI as of January 1, 2025.

Hicks Cable Company has a defined benefit pension plan. Three alternative possibilities for pension-related data at January 1, 2024 are shown below: Case 1 Net loss (gain)-AOCI, January 1 $ 340 ($ in thousands) Case 2 $ (410) Case 3 281 2024 loss (gain) on plan assets (31) (28) 6 2024 loss (gain) on PBO (43) 36 Accumulated benefit obligation, January 1 Projected benefit obligation, January 1 (3,150) (2,750) (3,510) (2,870) 3,000 2,900 (290) (1,650) (1,900) 1,750 10 12 7 Fair value of plan assets, January 1 Average remaining service period of active employees (years) Required: 1. For each independent case, calculate any amortization of the net loss or gain that should be included as a component of pension expense for 2024. 2. For each independent case, determine the net loss-AOCI or net gain-AOCI as of January 1, 2025.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Electronic Distribution has a defined benefit pension plan. Characteristics of the plan during 2024 are as follows: ($ millions) $480 350 75 45 P80 balance, January 11 Plan assets balance, January 1 Service cost Interest cost Gain from change in actuarial assumption Benefits paid Actual return on plan assets. Contributions 2024 26 (36) 23 65 The expected long-term rate of return on plan assets was 8%. There were no AOCI balances related to pensions on January 1, 2024, but at the end of 2024, the company amended the pension formula, creating a prior service cost of $13 million.
Please Correct answer With Explanation do not give solution in images format
Baron Company adopted a defined benefit pension plan 0n January 1, 2018. The following information pertains tothe pension plan for 2019 and 2020: 1. Compute the amount of Baron’s pension expense for 2019 and 2020. 2. Prepare the journal entries to record the pension expense for 2019 and 2020.
Subject - account Please help me. Thankyou.
Electronic Distribution has a defined benefit pension plan. Characteristics of the plan during 2024 are as follows: PBO balance, January 1 Plan assets balance, January 1 Service cost Interest cost Gain from change in actuarial assumption Benefits paid Actual return on plan assets Contributions 2024 ($ millions) $600 300 85 65 28 (60) 13 75 The expected long-term rate of return on plan assets was 6%. There were no AOCI balances related to pensions on January 1, 2024, but at the end of 2024, the company amended the pension formula, creating a prior service cost of $16 million. Required: 1. Calculate the pension expense for 2024. 2. Prepare the journal entries to record (a) pension expense, (b) gains or losses, (c) prior service cost, (d) funding, and (e) payment of benefits for 2024. 3. What amount will Electronic Distribution report in its 2024 balance sheet as a net pension asset or net pension liability? Complete this question by entering your answers in the tabs below. Required 1…
Buffalo Enterprises provides the following information relative to its defined benefit pension plan. Balances or Values at December 31, 2020 Projected benefit obligation $2,761,900 Accumulated benefit obligation 1,970,300 Fair value of plan assets 2,283,700 Accumulated OCI (PSC) 207,900 Accumulated OCI—Net loss (1/1/20 balance, 0) 45,600 Pension liability 478,200 Other pension plan data for 2020: Service cost $94,400 Prior service cost amortization 42,000 Actual return on plan assets 128,900 Expected return on plan assets 174,500 Interest on January 1, 2020, projected benefit obligation 251,500 Contributions to plan 94,200 Benefits paid 141,200 (a) Prepare the note disclosing the components of pension expense for the year 2020. (Enter amounts that reduce pension expense with either a negative sign preceding the number e.g. -45 or parenthesis e.g. (45).) Components of Pension…
Cullumber Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2025 and 2026. Plan assets (fair value), December 31 Projected benefit obligation, January 1 Pension asset/liability, January 1 Prior service cost, January 1 Service cost Actual and expected return on plan assets Amortization of prior service cost Contributions (funding) Accumulated benefit obligation, December 31 Interest/settlement rate No benefits were paid in 2025 or 2026. (a) Compute pension expense for 2025 and 2026. Pension expense for 2025 Pension expense for 2026 $ $ 2025 $873,750 875,000 175,000 Cr. 312,500 75,000 30,000 12,500 143,750 625,000 9% 2026 $1,061,250 1,000,000 ? 300,000 112,500 37,500 15,000 150,000 687,500 9%
The following data relate to Ramesh Company's defined benefit pension plan: ($ in millions) $690 69 55 118 13 20 90 Plan assets at fair value, January 1 Expected return on plan assets Actual return on plan assets Contributions to the pension fund (end of year) Amortization of net loss Pension benefits paid (end of year) Pension expense Required: Determine the amount of pension plan assets at fair value on December 31. (Enter your answers in millions. Amounts to be deducted should be indicated with a minus sign.) Pension Plan Assets Beginning of the year End of the year
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
Douglas-Robert, Inc. has a noncontributory, defined benefit pension plan. At December 31, 2022, Douglas-Robert received the following information: Projected Benefit Obligation ($ in millions) Balance, January 1 $ 140 Service cost 40 Interest cost 14 Benefits paid (10 ) Balance, December 31 $ 184 Plan Assets Balance, January 1 $ 100 Actual return on plan assets 11 Contributions 2021 40 Benefits paid (10 ) Balance, December 31 $ 141 The expected long-term rate of return on plan assets was 10%. There was no prior service cost and a negligible net loss—AOCI on January 1, 2022. Required:1. Determine Douglas-Robert’s pension expense for 2022.2. Prepare the journal entries to record Doublas Robert’s (a) pension expense, (b) funding, and (c) payment of retiree benefits in 2022.
The following data relate to Ramesh Company's defined benefit pension plan: ($ in millions) Plan assets at fair value, January 1 $720 Expected return on plan assets 72 Actual return on plan assets 58 Contributions to the pension fund (end of year) 124 Amortization of net loss 14 Pension benefits paid (end of year) 17 Pension expense 96 Required: Determine the amount of pension plan assets at fair…
Sandhill Company provides the following selected information related to its defined benefit pension plan for 2025. Pension asset/liability (January 1) $25.500 Cr. Accumulated benefit obligation (December 31) 403,100 Actual and expected return on plan assets 9,000 Contributions (funding) in 2025 148,600 Fair value of plan assets (December 31) 795,800 Settlement rate 10% Projected benefit obligation (January 1) 702.800 Service cost 79.580 (a1) Your answer is correct. Compute pension expense. Pension expense for 2025 $ 140860 i Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2025. Preparation of a pension worksheet is not required. Benefits paid in 2025 were $39,100. (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 and enter O for the amounts. List all debit entries before credit entries.) Account Titles and…