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$600Accumulated benefit obligation600830Projected benefit obligation840974Plan assets (fair value)590740Settlement rate and expected rate of return10%Pension asset/liability250?Accumulated OCI (PSC)200?Service cost for the year 2025100Contributions (funding in 2025)90Benefits paid in 202550The average remaining service life per employee is 10 years.(a1)Prepare a 2025 pension worksheet. (Enter all amounts as positive.)ItemsBalance, Jan. 1, 2025Service costInterest costReturn on assetsAmortization of PSCFundingBenefitsLiability change (increase)Journal entry-2025Accumulated OCI, Dec. 31, 2024Balance, Dec. 31, 2025$Annual PensionExpense>>>>>>Cashபப

The objective of the question is to prepare a pension worksheet for the year 2025 for Pharoah Acres'…

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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The following information pertains to LL Marshall Corporation's defined benefit pension plan: 2024 Beginning 2025 Beginning balances, $ (7,600) 7,300 760 $ 880 (S in thousands) Projected benefit obligation Plan assets Prior service cost-AOCI Net loss-AOCI balances $ (8,104) 7,936 720 $ 960 At the end of 2024, LL Marshall contributed $600 thousand to the pension fund and benefit payments of $754 thousand were made to retirees. The expected rate of return on plan assets was 12%, and the actuary's discount rate is 8%. There were no changes in actuarial estimates and assumptions regarding the PBO. What is the 2024 service cost for LL Marshall's plan?
Douglas-Robert, Inc. has a noncontributory, defined benefit pension plan. At December 31, 2022, Douglas-Robert received the following information: Projected Benefit Obligation ($ in millions) Balance, January 1 $ 140 Service cost 40 Interest cost 14 Benefits paid (10 ) Balance, December 31 $ 184 Plan Assets Balance, January 1 $ 100 Actual return on plan assets 11 Contributions 2021 40 Benefits paid (10 ) Balance, December 31 $ 141 The expected long-term rate of return on plan assets was 10%. There was no prior service cost and a negligible net loss—AOCI on January 1, 2022. Required:1. Determine Douglas-Robert’s pension expense for 2022.2. Prepare the journal entries to record Doublas Robert’s (a) pension expense, (b) funding, and (c) payment of retiree benefits in 2022.
Pharoah Company adopts acceptable accounting for its defined benefit pension plan on January 1, 2019, with the following beginning balances: plan assets $199,200; projected benefit obligation $248,000. Other data relating to 3 years' operation of the plan are as follows. Annual service cost Settlement rate and expected rate of return Actual return on plan assets Annual funding (contributions) Benefits paid Prior service cost (plan amended, 1/1/20) Amortization of prior service cost Change in actuarial assumptions establishes a December 31, 2021, projected benefit obligation of: 2019 $16,200 10 % 18,200 16,200 13,700 2020 $19,000 10 % 21,990 40,200 16,100 161,100 54,000 2021 $26,200 10 % 23,900 48,300 20,700 42,300 511,800
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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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…
Presented below is pension information related to Tyre Recycling Inc., for the calendar year 2019. The corporation uses ASPE. Current service costs $ 50,000 Contributions to the plan 55,000 Actual return on plan assets 40,000 Defined benefit obligation (beginning of year) 600,000 Fair value of plan assets (beginning of year) 400,000 Interest cost on the obligation 10% The pension expense to be reportedfor 2019 is Select one: a. $110,000. b. $70,000. c. $65,000. d. $50,000. e. None of the above.
Oriole Company provides the following selected information related to its defined benefit pension plan for 2025. Pension asset/liability (January 1) $24,900 Cr. Accumulated benefit obligation (December 31) 402,300 Actual and expected return on plan assets 10,900 Contributions (funding) in 2025 151,500 Fair value of plan assets (December 31) 805,100 Settlement rate 10% Projected benefit obligation (January 1) 697,100 Service cost 80,510 (a1) × Your answer is incorrect. Compute pension expense. Pension expense for 2025 $ 149320

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