Jones Manufacturing Inc. sponsored a defined benefit pension plan effective 1 January 20X7. The company uses the projected unitcredit actuarial cost method for funding and accounting. Long-term corporate bonds have a yield of 4%. Employees were grantedpartial credit for past service. The past service obligation has been measured at $1,640,000 as of 1 January 20X7. The company willpay $200,000 (for past service) plus all current service cost to the pension plan trustee each 31 December beginning 31 December20X7. This funding arrangement will continue for five years and then be re-evaluated.Data for 20X7 and 20X820X720X8Current service cost$117,000$157,000Actual return on fund assets6,800Decrease in defined benefit obligation at year-end dueto change in assumptionsPayments to pensioners at end of year37,00041,400Required:Prepare a spreadsheet containing all relevant pension information for 20X7 and 20X8. Required:Prepare a spreadsheet containing all relevant pension information for 20X7 and 20X8.Net pensionAsset (Liab)PensionPensionAOCIPlan AssetsExpenseObligation20X7Beginning-PSCCSCNet interestFundingEnding balance20X8CSCNet interestActual return versus expectedRevaluationBenefits paidFundingEnding balance

Jones Manufacturing Inc. sponsored a defined benefit pension plan effective 1 January 20X7. The company uses credit actuarial cost method for funding and accounting. Long-term corporate bonds have a yield of 4%. Employe partial credit for past service. The past service obligation has been measured at $1,640,000 as of 1 January 20X7 pay $200,000 (for past service) plus all current service cost to the pension plan trustee each 31 December begini 20X7. This funding arrangement will continue for five years and then be re-evaluated. Data for 20X7 and 20X8 Current service cost Actual return on fund assets Decrease in defined benefit obligation at year-end due to change in assumptions Payments to pensioners at end of year 20X7 $117,000 20X8 $157,000 6,800 37,000 41,400

Jones Manufacturing Inc. sponsored a defined benefit pension plan effective 1 January 20X7. The company uses credit actuarial cost method for funding and accounting. Long-term corporate bonds have a yield of 4%. Employe partial credit for past service. The past service obligation has been measured at $1,640,000 as of 1 January 20X7 pay $200,000 (for past service) plus all current service cost to the pension plan trustee each 31 December begini 20X7. This funding arrangement will continue for five years and then be re-evaluated. Data for 20X7 and 20X8 Current service cost Actual return on fund assets Decrease in defined benefit obligation at year-end due to change in assumptions Payments to pensioners at end of year 20X7 $117,000 20X8 $157,000 6,800 37,000 41,400

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

Haresh
On January 1 of the current reporting year, Coda Company's projected benefit obligation was $3,000,000. During the year, pension benefits paid by the trustee were $400,000. Service cost was $875,000 . Pension plan assets earned $325,000 as expected. At the end of the year, there was no net gain or loss and no prior service cost. The actuary's discount rate was 10%. Determine the amount of the projected benefit obligation at December 31.
The following information is related to the defined benefit pension plan of Dreamworld Company for the year: Service cost $60,000 Contributions to pension plan 110,000 Benefits paid to retirees 150,000 Plan assets (fair value), January 1 640,000 Plan assets (fair value), December 31 750,000 Actual return on plan assets 150,000 PBO, January 1 900,000 PBO, December 31 960,000 Discount rate 10 Long-term expected return on plan assets 9. Assuming no other relevant data exist, what is the pension expense for the year? 1. A) $190,00O. 2. B) $92,400. 3. C) $60,000. 4. D) $170,000.
On January 1, 2021, Gillock Climbing Academy instituted a defined benefit pension plan for its employees. The annual service cost for each year of 2021 and 2022 was $790,000. The interest rate used to determine the projected benefit obligation is 12%. Both the actual and the expected return on plan assets are 10% for both years. Gillock funded the plan in the amount of $590,000 each January 1, beginning on January 1, 2021. What pension liability should Gillock report in its balance sheet for the year ended December 31, 2022? Multiple Choice $501,500 $311.900 $370.900 $406,700
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 $11,700. The company's current year's contribution to the…
The following information pertains to Havana Corporation's defined benefit pension plan: ($ in thousands) Projected benefit obligation Plan assets Prior service cost-AOCI Net loss-AOCI Multiple Choice $530 thousand. $648 thousand. At the end of 2021, Havana contributed $670 thousand to the pension fund and benefit payments of $624 thousand were made to retirees. The expected rate of return on plan assets was 10%, and the actuary's discount rate is 8%. There were no changes in actuarial estimates and assumptions regarding the PBO. What is Havana's 2021 actual return on plan assets? $1,154 thousand. 2021 Beginning balances $(6,300) 6,060 630 750 None of these are correct. $ 2022 Beginning balances $ (6,804) 6,636 565 816
Foster Corporation received the following report from its actuary at the end of the year: December 31, 2014 December 31, 2015 Projected benefit obligation $2,000,000 $2,200,000 Accumulated benefit obligation 1,380,000 1,440,000 Fair value of pension plan assets 1,300,000 1,480,000 The amount reported as the pension liability at December 31, 2014 is a. 0 b. 80,000 c. 620,000 d. 700,000 The amount reported at the pension liability at December 31, 2015 is a. 2,200,000 b. 1,480,000 c. 720,000 d. 760,000
The following information is related to the defined benefit pension plan of Avalanche Corporation for the year: Service cost $ 62,000 Contributions to pension plan 118,000 Benefits paid to retirees 156,000 Plan assets (fair value), January 1 641,000 Plan assets (fair value), December 31 758,000 Actual return on plan assets 155,000 PBO, January 1 925,000 PBO, December 31 923,500 Discount rate 10 % Long-term expected return on plan assets 9 % Assuming no other relevant data exist, what is the pension expense for the year? Multiple Choice $62,000. $89,810. $96,810. $154,500.
Yuri Co. operates a chain of gift shops. The company maintains a defined contribution pension plan for its employees. The plan requires quarterly installments to be paid to the funding agent, Whims Funds, by the fifteenth of the month following the end of each quarter. Assume that the pension cost is $143,200 for the quarter ended December 31. Question Content Area a. Journalize the entry to record the accrued pension liability on December 31. If an amount box does not require an entry, leave it blank. Dec. 31 - Select - - Select - - Select - - Select - Question Content Area Journalize the entry to record the accrued pension liability payment to the funding agent on January 15. If an amount box does not require an entry, leave it blank. Jan. 15 - Select - - Select - - Select - - Select - Question Content Area b. The pension plan where a company pays the employee a fixed annual amount based on a formula is a
Pearsall Company has a defined benefit pension plan. On December 31 (the end of the fiscal year), the company received the PBO report from the actuary. The following information was included in the report: ending PBO, $112,000; benefits paid to retirees, $11,500; interest cost, $6,500. The discount rate applied by the actuary was 10%. What was the service cost for the year? Multiple Choice $52,000. $5,000. $94,000. $18,000. There is no correct answer.
It's urgently asap
Goda