What is the amount of prepaid/accrued benefit cost that should be shown on the December 31, 2019 statement of financial position?560,000700,000840,0002,520,000answer not given On January 1, 2019, the memorandum records of ABC Companyshowed the following balances related to its defined benefit plan:Fair value of plan assetsDefined benefit obligationP13,300,000(12,600,000)P 700,000Prepaid/Accrued Benefit CostThe transactions affecting the defined benefit plan for the currentyear are as follows:Current service costP2,520,000Interest cost1,120000Actual return on plan assets700,000Contribution to the plan2,800,0001,400,000Benefits paid to retiresWhat is the amount of the Prepaid/Accrued Benefit Cost thatshould be shown on the December 31, 2019 statement of financialposition?

Defined Benefit Plan:-These are plans which are provided to employees for their benefit based on…

Answered: On January 1, 2019, the memorandum…

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Chapter1: Financial Statements And Business Decisions

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What is the amount of prepaid/accrued benefit cost that should be shown on the December 31, 2019 statement of financial position?

560,000

700,000

840,000

2,520,000

answer not given

On January 1, 2019, the memorandum records of ABC Company
showed the following balances related to its defined benefit plan:
Fair value of plan assets
Defined benefit obligation
P13,300,000
(12,600,000)
P 700,000
Prepaid/Accrued Benefit Cost
The transactions affecting the defined benefit plan for the current
year are as follows:
Current service cost
P2,520,000
Interest cost
1,120000
Actual return on plan assets
700,000
Contribution to the plan
2,800,000
1,400,000
Benefits paid to retires
What is the amount of the Prepaid/Accrued Benefit Cost that
should be shown on the December 31, 2019 statement of financial
position?

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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