Pension WorksheetFactorBeginning BalanceService CostPrior Service CostAmortization of Prior Service CostInterest on PBOExpected Return on Plan AssetsUnexpected Return on Plan AssetsChanges in Actuarial AssumptionsAmortization of Actuarial Gains/LossesFundingPayments to RetireesImpact on Net incomeImpact on OCIEnding BalancesComprehensive IncomePensionExpense(NI)34,9001,58723,828(14,138)24146,419Prior ServiceCosts (OCI)-42,855(1,587)41,268ActuarialGains/Losses(OCI)(3,497)27,520(241)23,781credits and credit balances in parenthesesPBO(552,853)(34,900)(42,855)(23,828)(27,520)38,200Plan Assets471,25514,1383,49724,500(38,200)Balance Sheet(643,756) 475,190Cash------(24,500)AOCI -Actuarial Net PensionGains/Losses61,80042,855(1,587)-(3,497)27,520(241)Asset/Liability(81,598)126,849 (168,566) Prepare the pension journal entry for 2022.Red Robin offers a defined-benefit pension plan to its employees. The following information summarizes theevents related to the pension plan for the current year (2022):$Service cost for the yearSettlement rateExpected return on plan assetsActual return on plan assetsContributions for the yearBenefit payments for the yearIncrease on PBO of actuarial assumption changesPrior service costs granted on January 1Average remaining service life of employee base (years)$$$$$34,9004%3%17,63524,50038,20027,52042,85527This is the first year that Red Robin incurred prior service costs.The completed pension worksheet is included in the "Pension" spreadsheet attached.

In a defined benefit plan, the employer guarantees that the employee will receive a definite amount…

Red Robin offers a defined-benefit pension plan to its employees. The following information summarizes the events related to the pension plan for the current year (2022): $ Service cost for the year Settlement rate Expected return on plan assets Actual return on plan assets Contributions for the year Benefit payments for the year Increase on PBO of actuarial assumption changes Prior service costs granted on January 1 Average remaining service life of employee base (years) $ $ $ $ $ 34,900 4% 3% 17,635 24,500 38,200 27,520 42,855 27 This is the first year that Red Robin incurred prior service costs. The completed pension worksheet is included in the "Pension" spreadsheet attached.

Red Robin offers a defined-benefit pension plan to its employees. The following information summarizes the events related to the pension plan for the current year (2022): $ Service cost for the year Settlement rate Expected return on plan assets Actual return on plan assets Contributions for the year Benefit payments for the year Increase on PBO of actuarial assumption changes Prior service costs granted on January 1 Average remaining service life of employee base (years) $ $ $ $ $ 34,900 4% 3% 17,635 24,500 38,200 27,520 42,855 27 This is the first year that Red Robin incurred prior service costs. The completed pension worksheet is included in the "Pension" spreadsheet attached.

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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A company had the following information at the end of 2021: Accumulated benefit obligation $162,000 Projected benefit obligation 320,000 Accumulated OCI – losses 74,500 Accumulated OCI – Prior Service Cost (PSC) 21,800 Fair value of pension plan assets 277,000 The amount reported as the pension asset/liability at December 31, 2021 is $__________________. (Just enter the amount. Do NOT put a plus or minus sign in front of the amount.)
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Buffalo Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan. Plan assets $463,200 Projected benefit obligation 578,200 Pension asset/liability 115,000 Accumulated OCI (PSC) 100,100 Dr. As a result of the operation of the plan during 2020, the following additional data are provided by the actuary. Service cost $86,600 Settlement rate, 8% Actual return on plan assets 53,200 Amortization of prior service cost 18,000 Expected return on plan assets 50,200 Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions 79,600 Contributions 99,600 Benefits paid retirees 85,100 (a) Using the data above, compute pension expense for Buffalo Corp. for the year 2020 by preparing a pension worksheet. (Enter all amounts as positive.) BUFFALO CORP.Pension Worksheet General Journal Entries…
On December 31, 2019, Johnson Company accumulated the following information for 2019 in regard to its defined benefit pension plan: Service cost $113,230 Interest cost on projected benefit obligation 11,970 Expected return on plan assets 11,600 Amortization of prior service cost 2,020 On its December 31, 2018, balance sheet, Johnson had reported an accrued/prepaid pension cost liability of $12,880. Required: 1. Compute the amount of Johnson’s pension expense for 2019. 2. Prepare all the journal entries related to Johnson’s pension plan for 2019 if it funds the pension plan in the amount of (a) $115,620, (b) $114,620, and (c) $119,430. 3. Next Level Assuming Johnson’s beginning 2019 Accumulated Other Comprehensive Income: Prior Service Cost balance was $60,150 what would be its ending balance? 4. Next Level How much would Johnson need to fund its pension plan for 2019 in order to report an accrued/ prepaid pension cost asset of $5,120 at the end of 2019?
A company had the following information concerning the operation of the company's defined-benefit pension plan for the year ended December 31, 2021. January 1, 2021 December 31, 2021Fair value of pension plan assets $38,000 $55,000Projected benefit obligation 74,000 93,000 The service cost component of pension expense for 2021 is $8,700 and the amortization of prior service cost is $890. The settlement rate is 12% and the expected rate of return is 8%. What is the amount of pension expense for 2021?
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