Financial Accounting Kaplan Services Company (KSC) has 62employees, 33 of whom are assigned toDivision A and 29 to Division B. KSC incurred$377,580 of fringe benefits cost during 2014.RequiredDetermine the amount of the fringe benefitscost to be allocated to Division A and toDivision B.

Step 1: Define Fringe Benefit CostIt is the percentage of perquisites paid to the wages to an…

Answered: Kaplan Services Company (KSC) has 62…

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

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 6P

See similar textbooks

Similar questions

Bartels Banana Company sponsors a defined contribution plan that provides a base contribution of 12.3% of employee compensation. Assuming the integration level equals the Social Security taxable wage base, what is the maximum excess percentage allowed under the permitted disparity rules? A) 25.0%B) 18.0%C) 12.3%D) 5.7%
ABC Company operates a defined benefit plan and recognizes actuarial gains and losses in profit or loss under the corridor approach. At January 1, 2020, the plan assets were P8,000,000, the defined benefit obligation was P9,000,000 and the unrecognized actuarial losses were P1,200,000. During the year ended December 31, 2020, actuarial gains of P150,000 arose. The average remaining working period of participating employees was 20 years at both January 1 and December 31, 2020. What is the amount of cumulative unrecognized actuarial losses on December 31, 2020? (Round answer to whole number)
Charlton Company provided the following information concerning a defined benefit plan at the beginning ofcurrent year prior to the adoption of revised PAS 19:Debit CreditFair 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. 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 obligation on December 31.
On January 1, 2021 the memorandum records of Dakak Company’s defined benefit plan showed the following: Fair value of plan assets P 14,000,000 Unamortized past service cost 700,000 Unrecognized actuarial loss 2,000,000 Projected benefit obligation (15,000,000) Prepaid/accrued benefit cost – debit P 1,700,000 During 2021, the entity determined that its current service cost was P2,000,000 and the interest cost is 10%. The expected return on plan assets was 10% but the actual return during the year was 12%. Past service cost and any actuarial gain or loss should be amortized over 10 years. Other related information is as follows: Contribution to the plan P 2,400,000 Benefits paid to retirees during 2011 3,000,000 Decrease in accrued benefit obligation due to changes in actuarial assumption 400,000 a. What should be reported in the income…
S Inc follows ASPE but is planning to switch to IFRS in 2022. Beginning defined benefit obligation (DBO) balance on January 1, 2021 is $1,136. The plan is underfunded by 60% of this amount and the regulatory agencies consider this to be quite heavily underfunded. Past service costs were recorded on January 1, 2021. (The amount is to be determined). The current service costs for 2021 amounted to $280. The plan uses an interest rate of 8%. We recorded an interest expense of $104.48 for 2021. Our investments of the plan assets did very poorly earning only $26.356 on our plan assets in 2021. The corporate pension committee overseeing the plan operations had decided to fund an amount of $70 in addition to our normal annual contributions which we make as per our corporate policy. The company normally contributes 5% of the plan obligations existing at the beginning of the year plus 50% of the current service costs and 60% of any past service costs recorded during the year. Benefit payments…
Lark Corp. appropriately determined that each of its long-term projects represents a single performance obligation that is satisfied over time. At the end of the current year, Lark estimates that its costs to complete a project exceed the contract price, so that an overall loss on the contract is anticipated. Required: What journal entry will Lark record at the end of the current year, given the following information? • Revenue to date is $350,000 ($175,000 of which is to be recognized in the current year). • The expense recognized previously was $100,000. • An overall loss of $30,000 is anticipated
At January 1, 2020, Blossom Corporation had plan assets of $258,000 and a defined benefit obligation of the same amount based on projected costs. During 2020, the current service cost was $28,050, the discount rate on the DBO and plan assets was 10%, actual return on plan assets was $31,850, contributions by Blossom were $20,550, benefits paid were $17,500, and the cost of past service benefits granted effective December 31, 2020, was $29,000.Prepare a pension work sheet for Blossom Corporation for 2020 assuming that Blossom follows IFRS.
At the beginning of current year, De Guzman Company reported the following information in relation to a defined benefit plan: Fair value of plan assets - 7,000,000 Projected benefit obligation - 7,500,000 During the current year, the entity determined that the current service cost was 1,400,000 and the discount rate is 10%. The actual return on plan assets during the year was 840,000. Other related information for the current year: Contribution to the plan - 1,200,000 Benefits paid to retirees - 1,500,000 Decrease in projected benefit obligation due to changes in actuarial assumptions - 200,000 Present value of defined benefit obligation settled - 500,000 Settlement price of defined benefit obligation- 400,000 1. What amount should be reported in the income statement for the current year as employee benefit expense? 2. What is the net amount of remeasurements on Dec 31? 3. What is the fair value of plan assets kn Dec 31? 4. What is the projected benefit obligation on Dec 31?…
Given the following information for current fiscal year
The actuary for the pension plan of Indigo Inc. calculated the following net gains and losses. Incurred during the Year 2020 2021 2022 2023 As of January 1, Other information about the company's pension obligation and plan assets is as follows. 2020 2021 2022 (Gain) or Loss $302,200 476,600 2023 (210,400) (291,300) Projected Benefit Obligation $4,029,300 4,515,400 5,019,900 4,255,600 Plan Assets (market-related asset value) $2,423,700 2,180,800 2,580,100 3,067,900 Indigo Inc. has a stable labor force of 400 employees who are expected to receive benefits under the plan. The total service-years for all participating employees is 4,400. The beginning balance of accumulated OCI (G/L) is zero on January 1, 2020. The market-related value and the fair value of plan assets are the same for the 4-year period. Use the average remaining service life per employee as the basis for amortization. Compute the minimum amount of accumulated OCI (G/L) amortized as a component of net periodic pension…
A Company provided the following information for the current year: Current service cost 500,000 Interest on PBO 600,000 Interest income on plan asset 350,000 Loss on settlement 250,000 Past service cost during the year 300,000 Actual return on plan asset 850,000 Actuarial loss during the year 200,000 Contribution to the plan 1,500,000 What is the total defined benefit cost?
Lewis, a public limited company, has a defined benefit plan for its employees. The present value of the future benefit obligations at 1 January 20X7 was $1,120 million and the fair value of the plan assets was $1,040 million. Further data concerning the year ended 31 December 20X7 is as follows: $m Current service cost 76 Benefits paid to former employees Contributions paid to plan 88 94 Present value of benefit obligations at 31 December Fair value of plan assets at 31 December 1,222 1,132 As valued by professional actuaries Interest cost (gross yield on 'blue chip' corporate bonds): 5% On 1 January 20X7 the plan was amended to provide additional benefits with effect from that date. The present value of the additional benefits at 1 January 20X7 was calculated by actuaries at $40 million. Required Prepare the required notes to the statement of profit or loss and other comprehensive income and statement of financial position for the year ended 31 December 20X7. Assume the contributions…

SEE MORE QUESTIONS

Recommended textbooks for you

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

PAYROLL ACCT., 2019 ED.(LL)-TEXT

Accounting

ISBN:

9781337619783

Author:

BIEG

Publisher:

CENGAGE L

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

PAYROLL ACCT., 2019 ED.(LL)-TEXT

Accounting

ISBN:

9781337619783

Author:

BIEG

Publisher:

CENGAGE L

SEE MORE TEXTBOOKS

Kaplan Services Company (KSC) has 62 employees, 33 of whom are assigned to Division A and 29 to Division B. KSC incurred $377,580 of fringe benefits cost during 2014. Required Determine the amount of the fringe benefits cost to be allocated to Division A and to Division B.