Sheridan, Inc. sponsors a defined-benefit pension plan. The following data relates to the operation of the plan for the year 2021. Service cost $ 395000 Contributions to the plan 380000 Actual return on plan assets 320000 Projected benefit obligation (beginning of year) 3850000 Fair value of plan assets (beginning of year) 2650000 The expected return on plan assets and the settlement rate were both 10%. The amount of pension expense reported for 2021 is O $395000. O $515000. O $335000. O $780000.

Sheridan, Inc. sponsors a defined-benefit pension plan. The following data relates to the operation of the plan for the year 2021. Service cost $ 395000 Contributions to the plan 380000 Actual return on plan assets 320000 Projected benefit obligation (beginning of year) 3850000 Fair value of plan assets (beginning of year) 2650000 The expected return on plan assets and the settlement rate were both 10%. The amount of pension expense reported for 2021 is O $395000. O $515000. O $335000. O $780000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Solomon, Inc. sponsors a defined benefit pension plan for its employees. On January 2020, the following balances and additional information related to this plan are: Plan assets, January 1, 2020 $170,000 Projected Benefit Obligation, January 1, 2020 260,000 Prior Service Cost, January 1, 2020 100,000 OCI-Loss, January 1, 2020 42,000 Service Cost for 2020 45,000 Actual return on plan assets 25,000 Amortization of PSC 15,000 Contributions in 2020 85,000 Benefits paid in 2020 51,000 Settlement rate 8% Expected return on assets 28,000 Average remaining service of life of active employees 10 years . Prepare the year journal entry to record the pension expense
Macon, Inc. has a defined contribution pension plan and provides the following information for the year 2019: Pension liability at 1/1/2019, $35,000. Pension contributions made during the year, $48,000. Prior service cost balance at 1/1/2019, $30,000. Pension plan assets at 1/1/2019, $612,000. Pension benefits paid to retirees during 2019, $60,000. Settlement rate, 8%. Pension benefit obligation balance at 1/1/2019, $647,000. Service cost incurred during 2019, $72,000. Return of plan assets during 2019, $25,000. Amortization of prior service cost for 2019, $5,000.. REQUIRED: Prepare a pension worksheet to be used to calculate pension expense, and prepare the appropriate journal entry to record the pension expense for 2019.
Sweet Company provides the following information about its defined benefit pension plan for the year 2020. Service cost $91,000 Contribution to the plan 106,400 Prior service cost amortization 10,800 Actual and expected return on plan assets 65,200 Benefits paid 40,500 Plan assets at January 1, 2020 633,900 Projected benefit obligation at January 1, 2020 701,600 Accumulated OCI (PSC) at January 1, 2020 149,900 Interest/discount (settlement) rate 9 % Prepare a pension worksheet inserting January 1, 2020, balances, showing December 31, 2020. (Enter all amounts as positive.)
The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal years 2024 and 2025 are presented below ($ in millions): Information Provided by Pension Plan Actuary: a. Projected benefit obligation as of December 31, 2023 = $2,000. b. Prior service cost from plan amendment on January 2, 2024 = $600 (straight-line amortization for 10-year average remaining service period). c. Service cost for 2024 = $560. d. Service cost for 2025 = $610. e. Discount rate used by actuary on projected benefit obligation for 2024 and 2025 = 10%. f. Payments to retirees in 2024 = $420. g. Payments to retirees in 2025 = $490. h. No changes in actuarial assumptions or estimates. i. Net gain-AOCI on January 1, 2024 = $250. 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 = $1,500. b. 2024 contributions = $580. c. 2025 contributions = $630. d. Expected…
Ayayai Enterprises provides the following information relative to its defined benefit pension plan. Balances or Values at December 31, 2020 Projected benefit obligation $2,755,300 Accumulated benefit obligation 1,962,500 Fair value of plan assets 2,261,000 Accumulated OCI (PSC) 209,600 Accumulated OCI—Net loss (1/1/20 balance, 0) 45,800 Pension liability 494,300 Other pension plan data for 2020: Service cost $94,400 Prior service cost amortization 42,400 Actual return on plan assets 129,700 Expected return on plan assets 175,500 Interest on January 1, 2020, projected benefit obligation 252,000 Contributions to plan 94,100 Benefits paid 139,000 A) Prepare the note disclosing the components of pension expense for the year 2020. (Enter amounts that reduce pension expense with either a negative sign preceding the number e.g. -45 or parenthesis e.g. (45). B)Determine the amounts of other comprehensive…
Presented below is information related to Sandhill Inc. pension plan for 2021. Service cost $ 1160000 Actual return on plan assets 248000 Interest on projected benefit obligation 480000 Amortization of net loss 100000 Amortization of prior service cost due to increase in benefits 200000 Expected return on plan assets 220000 What amount should be reported for pension expense in 2021?
The following facts apply to the pension plan of Sheridan Inc. for the year 2020. Sheridan applies ASPE. Plan assets, January 1, 2020 $528,000 Defined benefit obligation, funding basis, January 1, 2020 427,000 Defined benefit obligation, accounting basis, January 1, 2020 528,000 Discount/interest rate 8.50% Annual pension service cost 40,600 Contributions 31,700 Actual return on plan assets 53,930 Benefits paid to retirees 33,500 Calculate pension expense for the year 2020, and provide the entries to recognize the expense and contributions for the year assuming that Sheridan has chosen the funding measure of its defined benefit obligation as its accounting policy choice. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Pension expense $enter Pension expense in dollars Date Account Titles and Explanation Debit Credit December 31, 2020…
Solomon, Inc. sponsors a defined benefit pension plan for its employees. On January 2020, the following balances and additional information related to this plan are: Plan assets, January 1, 2020 $170,000 Projected Benefit Obligation, January 1, 2020 260,000 Prior Service Cost, January 1, 2020 100,000 OCI-Loss, January 1, 2020 42,000 Service Cost for 2020 45,000 Actual return on plan assets 25,000 Amortization of PSC 15,000 Contributions in 2020 85,000 Benefits paid in 2020 51,000 Settlement rate 8% Expected return on assets 28,000 Average remaining service of life of active employees 10 years A. Prepare a pension worksheet using Excel B. Prepare the year journal entry to record the pension expense
The following information pertains to Foundry Inc.'s defined benefit pension plan: 2021 2022 Beginning Beginning ($ in thousands) balances balances Projected benefit obligation $ ( 6,100) $ (6,604) Plan assets 5,800 6,436 Prior service cost-AOCI 610 575 Net loss-AOCI 2$ 730 2$ 816 At the end of 2021, Foundry contributed $715 thousand to the pension fund and benefit payments of $624 thousand were made to retirees. The expected rate of return on plan assets was 11%, and the actuary's discount rate is 8%. There were no changes in actuarial estimates and assumptions regarding the PBO. What is the 2021 pension expense for Foundry's plan? Multiple Choice $625 thousand. None of these are correct. $532 thousand. $603 thousand.
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) Compute pension expense for the year 2020. Pension expense for 2020 $enter pension expense for 2017 in dollars Save for Later Attempts: 0 of 1 used Submit Answer (b)
Larkspur Company provides the following information about its defined benefit pension plan for the year 2020. Service cost $90,900 Contribution to the plan 103,000 Prior service cost amortization 9,300 Actual and expected return on plan assets 63,200 Benefits paid 39,800 Plan assets at January 1, 2020 648,600 Projected benefit obligation at January 1, 2020 706,600 Accumulated OCI (PSC) at January 1, 2020 Interest/discount (settlement) rate 148,800 Items 10 % Prepare a pension worksheet inserting January 1, 2020, balances, showing December 31, 2020. (Enter all amounts as positive.) Annual Pension Expense Cash Gener
Please help me