Pharoah Acres sponsors a defined-benefit pension plan. The corporation's actuary provides the following information about the plan:January 1, 2025December 31, 2025Vested benefit obligation$510$600Accumulated benefit obligation600830Projected benefit obligation840974Plan assets (fair value)590740Settlement rate and expected rate of return10%Pension asset/liability250?Accumulated OCI (PSC)200?Service cost for the year 2025100Contributions (funding in 2025)Benefits paid in 20255082890The average remaining service life per employee is 10 years.(a1)Prepare a 2025 pension worksheet. (Enter all amounts as positive.)

Pharoah Acres Pension Plan Worksheet - 2025I. Service Cost ComponentService cost (given) | $100II.…

Answered: Pharoah Acres sponsors a…

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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Klondike Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2019 and 2020. 2019 2020 Projected benefit obligation, January 1 Plan assets (fair value and market-related value), January 1 Pension asset/liability, January 1 Prior service cost, January 1 Service cost S600,000 410,000 190,000 Cr. 160,000 40,000 $ 59,000 Settlement rate 10% 10% Expected rate of return Actual return on plan assets 10% 10% 36,000 61,000 Amortization of prior service cost 70,000 50,000 Annual contributions 97,000 81,000 Benefits paid retirees 31,500 54,000 87,000 721,800 Increase in projected benefit obligation due to changes in actuarial assumptions Accumulated benefit obligation at December 31 Average service life of all employees Vested benefit obligation at December 31 -0- 789,000 20 years 464,000 Instructions (a) For both years 2019 and 2020, compute the annual pension expense.
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Current Attempt in Progress Cullumber Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2025, the following balances relate to this plan. Plan assets Projected benefit obligation Pension asset/liability Accumulated OCI (PSC) $465,800 604,200 138,400 95,000 Dr. As a result of the operation of the plan during 2025, the following additional data are provided by the actuary. (a) Service cost Settlement rate, 10% Actual return on plan assets Amortization of prior service cost Expected return on plan assets Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions Contributions Benefits paid retirees $86,600 55,000 19,300 52,000 79,600 102,800 88,300 Using the data above, compute pension expense for Cullumber. for the year 2025 by preparing a pension worksheet. (Enter all amounts as positive)
Cullumber Company sponsors a defined benefit pension plan. The corporation's actuary provides the following information about the plan. Vested benefit obligation Accumulated benefit obligation Projected benefit obligation Plan assets (fair value) Settlement rate and expected rate of return Pension asset/liability Service cost for the year 2020 Contributions (funding in 2020) Benefits paid in 202- Actual return on the plan assets $ Net pension liability gains and losses $ (a) Compute the actual return on the plan assets in 2020. Net gain or loss amortization January 1, 2020 $1,640 (d) Compute pension expense for 2020. Pension expense 2,060 $ $ 2,390 1,770 620 230 December 31, 2020 $2,060 2,610 3,230 2,490 (b) Compute the amount of the other comprehensive income (G/L) as of December 31, 2020. (Assume the January 1, 2020, balance was zero.) (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) 10 % ? (c) Compute the amount of net gain or loss…
Shamrock 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) $565,000 Projected benefit obligation 656,000 Pension asset/liability 91,000 Cr. Prior service cost 86,000 Net gain or loss (debit) 92,000 As a result of the operation of the plan during 2020, the actuary provided the following additional data for 2020. Service cost $98,000 Settlement rate, 9%; expected return rate, 10% Actual return on plan assets 50,000 Amortization of prior service cost 26,000 Contributions 126,000 Benefits paid retirees 92,000 Average remaining service life of active employees 10 years Using the preceding data, compute pension expense for Shamrock Corp. for the year 2020 by preparing a pension worksheet that shows the journal entry for pension expense. (Enter all amounts as positive.) Use the market-related…
The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal years 2021 and 2022 are presented below ($ in millions): Information Provided by Pension Plan Actuary: a. Projected benefit obligation as of December 31, 2020 = $3,650. b. Prior service cost from plan amendment on January 2, 2021 = $750 (straight-line amortization for 10-year average remaining service period). c. Service cost for 2021= $670. d. Service cost for 2022 = $720. e. Discount rate used by actuary on projected benefit obligation for 2021 and 2022 = 10%. f. Payments to retirees in 2021 = $530. g. Payments to retirees in 2022 = $600. h. No changes in actuarial assumptions or estimates. i. Net gain-AOCI on January 1, 2021 = $455. j. Net gains and losses are amortized for 10 years in 2021 and 2022. Information Provided by Pension Fund Trustee: a. Plan asset balance at fair value on January 1, 2021 = $2,60O. b. 2021 contributions = $690. c. 2022 contributions = $740. d. Expected…
The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal years 2024 and 2025 are presented below ($ in millions): Information Provided by Pension Plan Actuary: a. Projected benefit obligation as of December 31, 2023 = $3,350. b. Prior service cost from plan amendment on January 2, 2024 = $650 (straight-line amortization for 10-year average remaining service period). c. Service cost for 2024 = $650. d. Service cost for 2025 = $700. e. Discount rate used by actuary on projected benefit obligation for 2024 and 2025 = 10%. f. Payments to retirees in 2024 $510. g. Payments to retirees in 2025 $580. h. No changes in actuarial assumptions or estimates. 1. Net gain-AOCI on January 1, 2024 = $375. J. Net gains and losses are amortized for 10 years in 2024 and 2025. Information Provided by Pension Fund Trustee: a. Plan asset balance at fair value on January 1, 2024 = $2,400. b. 2024 contributions $670. c. 2025 contributions $720. d. Expected long-term rate…
Sunland Corporation is a privately-owned company that uses ASPE. On January 1, 2023, Sunland's financial records indicated the following information related to the company's defined benefit pension plan: Defined Benefit Obligation Pension Plan Assets $1,310,000 1,470,000 Sunland Corporation's actuary provided the following information on December 31, 2023: Current year service cost $82,000 Prior service cost, granted Jan 1, 2023 198,000 Employer contributions for the year 88,000 Benefits paid to retirees 28,000 Expected return on assets 5% Actual return on assets Discount rate 6% 5% (a) Prepare a pension worksheet for Sunland Corporation for 2023. Balance, January 1, 2023 Current Service Cost Prior Service Cost Net Interest/Finance Cost Asset Remeasurement Gain/Loss Employer Contributions to Pension Fund Benefits Paid to Retirees from Pension Fund Defined Benefit Expense Entry - 2023 Net Funding Entry Balance, December 31, 2023 Annual Defined Benefit Expense > > > > > General Journal…
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