Refer to the 2020 financial statements and related disclosure notes of Microsoft Corporation (www.microsoft.com). Required: 1. What type of pension plan does Microsoft sponsor for its employees? 2. Who bears the "risk" of factors that might reduce retirement benefits in this type of plan? 3. Assuming that employee and employer contributions vest immediately, suppose a Microsoft employee contributes $1,000 to the pension plan during her first year of employment and directs investments to a bond mutual fund. If she leaves Microsoft early in her second year, after the mutual fund's value has increased by 2%, how much will she be entitled to roll over into an Individual Retirement Account (IRA)? 4. What journal entry did Microsoft use to account for its participation in the pension plan in fiscal 2020? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 What journal entry did Microsoft use to account for its participation in the pension plan in fiscal 2020? View transaction list View journal entry worksheet No Event General Journal 1 1 Pension expense Plan assets РВО Amortization of prior service cost-OCI < Required 3 Required> Debit Credit
Refer to the 2020 financial statements and related disclosure notes of Microsoft Corporation (www.microsoft.com). Required: 1. What type of pension plan does Microsoft sponsor for its employees? 2. Who bears the "risk" of factors that might reduce retirement benefits in this type of plan? 3. Assuming that employee and employer contributions vest immediately, suppose a Microsoft employee contributes $1,000 to the pension plan during her first year of employment and directs investments to a bond mutual fund. If she leaves Microsoft early in her second year, after the mutual fund's value has increased by 2%, how much will she be entitled to roll over into an Individual Retirement Account (IRA)? 4. What journal entry did Microsoft use to account for its participation in the pension plan in fiscal 2020? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 What journal entry did Microsoft use to account for its participation in the pension plan in fiscal 2020? View transaction list View journal entry worksheet No Event General Journal 1 1 Pension expense Plan assets РВО Amortization of prior service cost-OCI < Required 3 Required> Debit Credit
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Refer to the 2020 financial statements and related disclosure notes of Microsoft Corporation (www.microsoft.com).
Required:
1. What type of pension plan does Microsoft sponsor for its employees?
2. Who bears the "risk" of factors that might reduce retirement benefits in this type of plan?
3. Assuming that employee and employer contributions vest immediately, suppose a Microsoft employee contributes $1,000 to the
pension plan during her first year of employment and directs investments to a bond mutual fund. If she leaves Microsoft early in her
second year, after the mutual fund's value has increased by 2%, how much will she be entitled to roll over into an Individual
Retirement Account (IRA)?
4. What journal entry did Microsoft use to account for its participation in the pension plan in fiscal 2020?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Required 3 Required 4
What journal entry did Microsoft use to account for its participation in the pension plan in fiscal 2020?
View transaction list
View journal entry worksheet
No
Event
General Journal
1
1
Pension expense
Plan assets
РВО
Amortization of prior service cost-OCI
< Required 3
Required>
Debit
Credit
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