AaBbC AaBbCcI AaBbC AaBbCcl AaBbCc AaBbCcLO Findx A A E=EE E EReplace1 NormalTitle1 No Spac... Heading 1Heading 2Heading 3 Heading 4SelectontParagraphStylesEditingQUESTION 3Penco Ltd. operates a defined benefit pension scheme for all of its employees. The closingbalances on the scheme assets and liabilities, at 31 December 2016, were S60 million and $64million respectively.Penco's actuary has provided the following information that has yet to be accounted for in theyear-ended 31 December 2017.$mCurrent service cost9.Past service cost8.Contributions paid inBenefits paid out6.66Fair value of plan asset75Fair value of plan liabilities5%Yield on high quality corporate bondsRequiredCalculate the amounts that will appear in the financial statements of Penco for the year-ended 31December 2017.D. Focus28°C Sunny ^ D G EG6137121

Financial statements are extensive reports that encapsulate a company's financial status and…

Answered: Penco Ltd. operates a defined benefit…

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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The following information relates to the defined benefit pension plan for the employees of a company: 1/1/20 12/31/20 12/31/21 Projected benefit obligation $201,000 $321,000 $416,000 Accumulated benefit obligation 192,000 287,000 381,000 Fair value of plan assets 156,000 252,000 448,000 Accumulated OCI--gains -0- 41,000 237,000 The company estimates that the average remaining service life is 40 years. The company’s contribution was $82,000 in 2021 and benefits paid were $45,000. The amount of accumulated OCI-gains amortized in 2021 is $_________. (If there should be no…
(Pension Expense, Journal Entries, Statement Presentation) Ferreri Company received the following selected information from its pension plan trustee concerning the operation of the company’s defined benefit pension planfor the year ended December 31, 2017. Check below image for information. The service cost component of pension expense for employee services rendered in the current year amounted to $77,000 and the amortization of prior service cost was $120,000. The company’s actual funding (contributions) of the plan in 2017 amounted to $250,000. The expected return on plan assets and the actual rate were both 10%; the interest/discount (settlement) rate was 10%. Accumulated other comprehensive income (PSC) had a balance of $1,200,000 on January 1, 2017. Assume no benefits paid in 2017.Instructions(a) Determine the amounts of the components of pension expense that should be recognized by the company in 2017.(b) Prepare the journal entry to record pension expense and the employer’s…
wifty Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2020 in which no benefits were paid. 1. The actuarial present value of future benefits earned by employees for services rendered in 2020 amounted to $55,500. 2. The company’s funding policy requires a contribution to the pension trustee amounting to $144,729 for 2020. 3. As of January 1, 2020, the company had a projected benefit obligation of $908,100, an accumulated benefit obligation of $802,100, and a debit balance of $400,100 in accumulated OCI (PSC). The fair value of pension plan assets amounted to $601,200 at the beginning of the year. The actual and expected return on plan assets was $54,100. The settlement rate was 9%. No gains or losses occurred in 2020 and no benefits were paid. 4. Amortization of prior service cost was $50,500 in 2020. Amortization of net gain or loss was not required in 2020. (a)…
The trustee for the Bronson Corporation defined benefit pension plan sent a report to the CEO with the following information for the fiscal year: Beginning balance of plan assets at fair value $ 1,560,000 Actual return on plan assets $ 210,000 Employer’s contribution $ 150,000 Distributions to retirees $ 75,000 Service cost $ 125,000 Interest cost $ 156,000 Loss from changes in benefits or assumptions $ 35,000 Beginning balance of the PBO $ 1,580,000 The ending balance of plan assets is: Multiple Choice $1,770,000. $1,845,000. $1,920,000. $1,955,000.
Caroni Ltd has a defined benefit pension plan for its employees. In 2016, the following actuarial report was received for the defined benefit plan: 2016/$ Present value of the defined benefit obligation 31 December 2015 10 000 000 Net interest ? Current service cost 1 150 000 Benefits paid 1 200 000 Actuarial gain/loss on DBO ? Present value of the defined benefit obligation 31 December 2016 10 750 000 Fair value of plan assets at 31 December 2015 9 500 000 Return on plan assets ? Contributions paid to the plan during the year 1 000 000 Benefits paid by the plan during the year 1 200 000 Fair value of plan assets at 31 December 2016 10 047 500 Additional information (a) All contributions received by the plan were paid by Caroni Ltd. (b) The interest rate used to measure the present value of the defined benefit obligation was 9% at 31 December 2015 and 31 December 2016. (c) The asset ceiling was nil at 31 December 2015 and 31 December 2016. Requirement: Prepare a pension worksheet for…
The following information for Blossom Enterprises is given below: December 31, 2021 Assets and obligations Plan assets (at fair value) $840000 Accumulated benefit obligation 1360000 Projected benefit obligation 1450000 Other Items Pension asset / liability, January 1, 2021 40000 Contributions 460000 Accumulated other comprehensive loss 753700 There were no actuarial gains or losses at January 1, 2021. The average remaining service life of employees is 10 years.What is the amount that Blossom Enterprises should report as its pension liability on its balance sheet as of December 31, 2021? $1360000 $90000 $1450000 $610000
Hijo Corp. is a publicly accountable entity that operates a defined benefit plan for its employees. Data relating to the pension plan is as follows: Defined benefit obligation (DBO), December 31, 2019 $22,300,000 Plan assets, December 31, 2019 24,500,000 Current service costs (CSC), December 31, 2020 2,200,000 Benefits paid to retirees, December 31, 2020 1,000,000 Actual return on plan assets, December 31, 2020 800,000 DBO, December 31, 2020, per actuary 24,000,000 Yield on high-quality corporate bonds 4% What is the total gain or loss that will flow to the other comprehensive income (OCI) part of the statement of comprehensive income for the year ended December 31, 2020? Question 12 options: a) $572,000 loss b) $180,000 loss c) $212,000 gain d) $392,000 gain
(Pension Expense, Journal Entries, Amortization of Loss) Gottschalk Company sponsors a defined benefit plan for its 100 employees. On January 1, 2017, the company’s actuary provided the following information. Accumulated other comprehensive loss (PSC) $150,000 Pension plan assets (fair value and market-related asset value) 200,000 Accumulated benefit obligation 260,000 Projected benefi t obligation 380,000 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, 2017, the actuary calculated that the present value of future benefits earned for employee services rendered in the current year amounted to $52,000; the projected benefit obligation was $490,000; fair value of pension assets was $276,000; the accumulated benefit obligation amounted to $365,000. The expected return on plan assets and the discount rate on the projected benefit obligation were both 10%. The actual…
Pkease Do not Give image format Note .Prepare a partial income statement and balance sheet for the pension expense. *The pension expense on the Income statement is not $133,470.
1. Differentiate between a defined contribution pension plan and defined benefit pension plan. Explain how the employer’s obligation differs between the two types of plans. 2. What is meant by past service cost? When is past service cost recognized as pension expense? 3. How does an “asset gain or loss” develop in pension accounting? 4. At January 1, 2015, Uddin Company had plan assets of $250,000 and a defined benefit obligation of the same amount. During 2015, service cost was $27,500 ,the discount rate was 10%, actual return on plan assets was $25,000, contributions were $20,000 and benefits paid were $17,500. Prepare a pension worksheet for Uddin Company for 2015.
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