Marigold Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2021, the following balances related to this plan. Plan assets (market-related value) $269,400 Projected benefit obligation 334,400 Pension asset/liability 65,000 Cr. Prior service cost 89,600 OCI-Loss 39,700 As a result of the operation of the plan during 2021, the actuary provided the following additional data for 2021. Service cost $44,500 Actual return on plan assets 26,900 Amortization of prior service cost 12,000 Contributions 64,400 Benefits paid retirees 41,400 Settlement rate 7 % Expected return on plan assets 8 % Average remaining service life of active employees 10 years Indicate the pension amounts reported in the financial statements. Marigold Corp. Income Statement (Partial) Marigold Corp. Comprehensive Income Statement $XXXX $XXXX Marigold Corp. Partial Balance Sheet

Marigold Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2021, the following balances related to this plan. Plan assets (market-related value) $269,400 Projected benefit obligation 334,400 Pension asset/liability 65,000 Cr. Prior service cost 89,600 OCI-Loss 39,700 As a result of the operation of the plan during 2021, the actuary provided the following additional data for 2021. Service cost $44,500 Actual return on plan assets 26,900 Amortization of prior service cost 12,000 Contributions 64,400 Benefits paid retirees 41,400 Settlement rate 7 % Expected return on plan assets 8 % Average remaining service life of active employees 10 years Indicate the pension amounts reported in the financial statements. Marigold Corp. Income Statement (Partial) Marigold Corp. Comprehensive Income Statement $XXXX $XXXX Marigold Corp. Partial Balance Sheet

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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wildhorse, inc. on january 1, 2021 initiated a noncontributory, defined-benefit pension plan that grants benefits to its 95 employees for services rendered in years prior to the adoption of the pension plan. the total expected service-years of the 95 employees who are expected to receive benefits under the plan is 1,140. an actuarial consulting firm has indicated that the present value of the projected benefit obligation on january 1, 2021 ws $5,424,000. On december 31, 2021 the following information was provided concerning the pension plan's operations for its first year. employer's contribution at end of year $1,510,000 service cost $550,000 projected benefit obligation 6,551,600 plan assets (at fair value) 1,570,000 expected return on plan assets 9% settlement rate 8% Compute the pension expense recognized in 2021. assume the prior service cost is amortized over the average remaining service life of the employees.
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 PICTURE BELOW FOR REFERENCE:
Horizon Inc. has a defined benefit pension plan. The following pension-related data were available for the current calendar year: PBO: Balance, Jan. 1 $ 235,000 Service cost 36,000 Interest cost (5% discount rate) 11,750 Gain from changes in actuarial assumptions in 2021 (4,500 )Benefits paid to retirees (15,000 )Balance, Dec. 31 $ 263,250 Plan assets: Balance, Jan.1 $ 245,000 Actual return (expected return was $22,000) 20,000 Contributions 30,000 Benefits paid (15,000 )Balance, Dec. 31 $ 280,000 ABO, Dec. 31 $ 239,500 January 1, 2021, balances: Prior service cost–AOCI (amortization $5,075/yr.) 5,075 Net gain–AOCI (amortization, if any, over 15 years) 50,750 There were no other relevant data. Required:1. Calculate the 2021 pension expense.2. Prepare the 2021 journal entries to record pension expense and funding.3. Prepare any journal entries to record any 2021 gains or losses.
The following information pertains to Foundry Inc.'s defined benefit pension plan: 2021 2022 Beginning Beginning ($ in thousands) balances balances Projected benefit obligation $ ( 6,100) $ (6,604) Plan assets 5,800 6,436 Prior service cost-AOCI 610 575 Net loss-AOCI 2$ 730 2$ 816 At the end of 2021, Foundry contributed $715 thousand to the pension fund and benefit payments of $624 thousand were made to retirees. The expected rate of return on plan assets was 11%, and the actuary's discount rate is 8%. There were no changes in actuarial estimates and assumptions regarding the PBO. What is the 2021 pension expense for Foundry's plan? Multiple Choice $625 thousand. None of these are correct. $532 thousand. $603 thousand.
On January 1, 2021, a company has the following balances for its defined-benefit plan: Projected benefit obligation $536,000Fair value of plan assets 804,000 Other data related to the pension plan for 2021 are: Amortization of accumulated OCI-loss $76,000 Decrease in projected benefit obligation due to changes in actuarial assumptions 165,000 Service cost 311,840 Interest cost 218,000 Amortization of prior service costs 133,000 Contributions 475,000 Benefits paid 272,740 Actual return on plan assets 398,000 Expected return on plan assets 406,000 The balance of the projected benefit obligation at December 31, 2021 is $__________.
The Pension Expense in a pension plan for the year were recorded at $856,800. In addition, an amount of $161,400 had been debited to the Other Comprehensive Income account to record all actuarial losses for the year. In addition, the company had contributed a cash amount of $350,000 to the Plan Assets. What would have been the amount recorded as Pension expenses for 2019 if the company were reporting under ASPE? Select one: a. $856,800. b. $757,200. c. $161,400. d. $350,000. e. None of the above.
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…
On January 1, 2020, Blue Company has the following defined benefit pension plan balances. Projected benefit obligation $4,506,000 Fair value of plan assets 4,220,000 The interest (settlement) rate applicable to the plan is 10%. On January 1, 2021, the company amends its pension agreement so that prior service costs of $508,000 are created. Other data related to the pension plan are as follows. 2020 2021 Service cost $152,000 $179,000 Prior service cost amortization 0 91,000 Contributions (funding) to the plan 237,000 281,000 Benefits paid 202,000 284,000 Actual return on plan assets 253,200 262,000 Expected rate of return on assets 6 % 8 %
Blossom Corp. sponsors a defined benefit pension plan for its employees. On January I, 2025, the following balances relate to this plan. Plan assets: $460,000 Projected benefit obligation: $606,500 Pension asset/liability: $146,500 Accumulated OCI (PSC): 104,200 Dr. As a result of the operation of the plan during 2025, the following additional data are provided by the actuary. Service cost: $93,500 Settlement rate, 10% Actual return on plan assets: $54,600 Amortization of prior service cost: $18,100 Expected return on plan assets: $51,600 Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions: $76,600 Contributions: $100,500 Benefits paid retirees: $84,300 Using the data above, compute pension expense for Blossom for the year 2025 by preparing a pension worksheet. (Enter all amounts as positive.)
Pronghorn Enterprises provides the following information relative to its defined benefit pension plan. Balances or Values at December 31, 2020 Projected benefit obligation $2,715,800 Accumulated benefit obligation 1,992,600 Fair value of plan assets 2,283,600 Accumulated OCI (PSC) 208,800 Accumulated OCI—Net loss (1/1/20 balance, 0) 45,600 Pension liability 432,200 Other pension plan data for 2020: Service cost $94,600 Prior service cost amortization 42,200 Actual return on plan assets 130,900 Expected return on plan assets 176,500 Interest on January 1, 2020, projected benefit obligation 252,200 Contributions to plan 92,800 Benefits paid 139,600 Determine the amounts of other comprehensive income and comprehensive income for 2020. Net income for 2020 is $35,000. Compute the amount of accumulated other comprehensive income reported at December 31, 2020.
Presented below is pension information related to Fauci, Inc. for the year 2021:Service cost $480,000Interest on projected benefit obligation 200,000Interest on vested benefits 120,000Amortization of prior service cost due to increase in benefits 60,000Expected return on plan assets 90,000The amount of pension expense to be reported for 2021 isa. $590,000.b. $770,000.c. $860,000.d. $650,000.