question 7. Paid required annual contribution to pension plan, $250,000. Expenditures—Operating—Pension Contribution................................... Cash................................................................................ To record annual pension contribution.

question 7. Paid required annual contribution to pension plan, $250,000. Expenditures—Operating—Pension Contribution................................... Cash................................................................................ To record annual pension contribution.

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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On January 1, 2020, Hulk Ltd. reported the following balances relating to their defined benefit pension plan: ...... Defined benefit obligation............................................ $1,600,000 ...... Fair value of plan assets................................................ 1,600,000 Other data related to the pension plan for calendar 2020 are: ...... Current service cost....................................................... 70,000 ...... Contributions to the plan............................................... 102,000 ...... Benefits paid................................................................. 100,000 ...... Actual return on plan assets.......................................... 96,000 ...... Interest (discount) rate.................................................. 9% Instructions c. Calculate pension expense for 2020. d. Prepare the journal entries to record the pension expense and the contributions for 2020.
M10-18. Analyzing and Interpreting Pension Disclosures-Plan Assets and Cash Flow YUM! Brands Inc. discloses the following pension footnote in its 10-K report. Pension Plan Assets ($ millions) Fair value of plan assets at beginning of year Actual return on plan assets. Employer contributions Benefits paid.. Fair value of plan assets at end of year. 2018 $864 (49) 13 (73) $755 a. How does the "actual return on plan assets" of $(49) million affect YUM!'s reported profits for 2018? b. YUM! Brands contributed $13 million cash to the pension plan investment account (asset) during the year. Which of the following is true? i. YUM! recognized the $13 million cash payment as a pension expense in 2018. ii. YUM! did not recognize the $13 million cash payment as a pension expense in 2018 because it is not tax deductible. iii. YUM! did not recognize the 13 million cash payment as a pension expense in 2018 because it relates to employees' service in prior periods. iv. YUM! did not recognize the $13…
The following information was obtained from the financial statements of X Inc. Defined Benefit Plan Obligations Pension Benefits 2020……………………..2019 Defined Benefit Obligation(DBO): Balance, beginning of year…………………………………………$40,032…………………..42,370 Current Service Cost…………………………………………………… 864…………………. 1,126 Interest Cost…………………………………………………………… 2,344…………………... 2,255 Benefits Paid……………………………………………………………(3,198)………………….. (2,881) Actuarial Gains………………………………………………………... (3,339)………………….. (2,838) Balance, end of year………………………………………………….$36,703……………….….$40,032 Defined Benefit Plan Assets Pension Benefits 2020…………..…………2019 Balance, beginning of year…………………………………………$75,891………………….$90,828 Expected return on Plan Assets……………………………………. 5,599………………….. 6,723 Employee contributions……………………………………………….…
The net pension liability (PBO minus plan assets) is increased by: A. Service cost. B. Expected return on plan assets. C. Amortization of prior service cost. D. Cash contributions to plan assets.
While examining the books and records in the general and administrative expense account of X Ltd., you came across the following contribution to the registered pension plan made by the Company on behalf of two key employees for the year ended December 31st.2021:- Registered Pension…………………..Employment Plan compensation,2021 President……………………………………..$15,000……………………………………….$180,000 Vice President……………………………….$14,000………………………………………..$ 95,000 The pension plan is a defined contribution(money purchase)plan. The contribution shown were matched by equal contribution made by the employees. Reconciling accounting income to to Division B income, you discover that the following portion of RPP contribution should be disallowed from being expensed by the X Ltd for tax purposes for the year ended December 31st.2021:- a. $NIL b. $13070 c. $10,000…
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Answer part C only The following information was obtained from the financial statements of X Inc. Defined Benefit Plan Obligations Pension Benefits 2020……………………..2019 Defined Benefit Obligation(DBO): Balance, beginning of year…………………………………………$40,032…………………..42,370 Current Service Cost…………………………………………………… 864…………………. 1,126 Interest Cost…………………………………………………………… 2,344…………………... 2,255 Benefits Paid……………………………………………………………(3,198)………………….. (2,881) Actuarial Gains………………………………………………………... (3,339)………………….. (2,838) Balance, end of year………………………………………………….$36,703……………….….$40,032 Defined Benefit Plan Assets Pension Benefits 2020…………..…………2019 Balance, beginning of year…………………………………………$75,891………………….$90,828 Expected return on Plan Assets……………………………………. 5,599………………….. 6,723 Employee…
Amortizing prior service cost for pension plans will: Multiple Choice Increase liabilities. Decrease retained earnings. Decrease assets. Increase shareholders' equity. 14 of 39 Next > SPrev 7 Question no...pages ....pdf Question no....pages MacBook Air ...
Amortizing prior service cost for pension plans will: Help Save & Exit Submi Multiple Choice Increase retained earnings and decrease accumulated other comprehensive income. Decrease retained earnings and decrease accumulated other comprehensive income. Increase retained earnings and increase accumulated other comprehensive income. Decrease retained earnings and increase accumulated other comprehensive income. 11 of 39 Next > S Prev Question no....pages Question no....pages -...pdf AncBook Air
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3b. The following information is available for the pension plan of Vaughn Company for the year 2020. Actual and expected return on plan assets $ 14,700 Benefits paid to retirees 40,800 Contributions (funding) 81,100 Interest/discount rate 10 % Prior service cost amortization 7,600 Projected benefit obligation, January 1, 2020 458,000 Service cost 63,900 (a) Your answer has been saved. See score details after the due date. Compute pension expense for the year 2020. Pension expense for 2020 $enter pension expense for 2017 in dollars Attempts: 1 of 1 used (b) Prepare the journal entry to record pension expense and the employer’s contribution to the pension plan in 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for…