The following information is made available involvingthe defined benefit pension plan of PrincessCompany for the year 2018:Fair value of plan assets, 1/1/17P3,500,000Present value of benefit obligation 1/1/173,750,000Current service cost700,000Actuarial return on plan asset420,000Contribution to the plan600,000Benefits paid to retirees750,000,Decrease in the present value of benefitobligation due to change in actuarial assumptions100,000Present value of defined benefit obligation settled250,000Settlement price of defined benefit obligation200,000Discount rate10%What is the fair value of the plan asset as ofDecember 31, 2018?

Defined benefit plans are plans that are made or established by the company for the benefit of…

Answered: The following information is made…

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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Sandhill Company provides the following information about its defined benefit pension plan for the year 2025. Service cost Contribution to the plan $91,600 104,400 Prior service cost amortization 10,800 Actual and expected return on plan assets 64,600 Benefits paid 40,300 Plan assets at January 1, 2025 650,000 Projected benefit obligation at January 1, 2025 692,000 Accumulated OCI (PSC) at January 1, 2025 150,000 Interest/discount (settlement) rate 11% (a) Prepare a pension worksheet inserting January 1, 2025, balances, showing December 31, 2025. (Enter all amounts as positive.
Information regarding the defined-benefit pension plan of Lopez Products included the following for 2024 ($ in millions): December 31: Projected benefit obligation (PBO) Accumulated benefit obligation (ABO) Plan assets Pension expense $ 85 75 50 8 No contributions were made to the pension plan assets during 2024. At December 31, 2024, what amount should Lopez report as its net pension liability? Multiple Choice О $27 million $10 million
The following pension plan information is for Crane Company at December 31, 2026: Projected benefit obligation Accumulated benefit obligation $ 8400000 7350000 Plan assets (at fair value) 5932000 Accumulated OCI (PSC) 420000 Pension expense for 2026 2400000 Contribution for 2026 1812000 The amount to be reported as the liability for pensions on the December 31, 2026 balance sheet is ○ $1638000. ○ $2468000. ○ $1418000. ○ $2006000.
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Wildhorse Company provides the following information about its defined benefit pension plan for the year 2020. Service cost Contribution to the plan Prior service cost amortization Actual and expected return on plan assets Benefits paid Plan assets at January 1, 2020 Projected benefit obligation at January 1, 2020 Accumulated OCI (PSC) at January 1, 2020 Interest/discount (settlement) rate Items Pension Experse Balance, January 1, 2020 91200 Service cost 61801 Interest cost T 62800 Actual return 9800 Amortization of PSC Contributions Benefits Journal entry for 2020 Accumulated OCI, Dec 31, 2019 Balance, Dec 31, 2020 eTextbook and Media List of Accounts $91,200 104,700 9,800 62,800 40,500 632,600 686,700 152,100 9% eTextbook and Media 100003 Dr. Dr. cr. Cash Debit 104700 Prepare the journal entry recording pension expense. (Credit account titles are automatically indented when amount is entered. Do na indent manually. If no entry is required, select "No Entry" for the account titles and…
Electronic Distribution has a defined benefit pension plan. Characteristics of the plan during 2024 are as follows: PBO balance, January 1 Plan assets balance, January 1 Service cost Interest cost Gain from change in actuarial assumption Benefits paid Actual return on plan assets Contributions 2024 ($ millions) $600 300 85 65 28 (60) 13 75 The expected long-term rate of return on plan assets was 6%. There were no AOCI balances related to pensions on January 1, 2024, but at the end of 2024, the company amended the pension formula, creating a prior service cost of $16 million. Required: 1. Calculate the pension expense for 2024. 2. Prepare the journal entries to record (a) pension expense, (b) gains or losses, (c) prior service cost, (d) funding, and (e) payment of benefits for 2024. 3. What amount will Electronic Distribution report in its 2024 balance sheet as a net pension asset or net pension liability? Complete this question by entering your answers in the tabs below. Required 1…
Peach Corporation uses IFRS. Presented below is information relate to Peach Corporation's defined benet pension plan for calendar 2023: Defined benefit obligation, January 1 200,000 Fair value of plan assets, January 1 180,000 Current service cost 27,000 Contributions to plan 25,000 Actual and expected return on plan assets 9,000 Benefits paid to retirees 40,000 Interest (discount) rate 10% The balance of the defined benefit obligation at December 31, 2023 is a) $185,000. b) $187,000. c) $207,000. d) $245,000.
Cullumber Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2025 and 2026. Plan assets (fair value), December 31 Projected benefit obligation, January 1 Pension asset/liability, January 1 Prior service cost, January 1 Service cost Actual and expected return on plan assets Amortization of prior service cost Contributions (funding) Accumulated benefit obligation, December 31 Interest/settlement rate No benefits were paid in 2025 or 2026. (a) Compute pension expense for 2025 and 2026. Pension expense for 2025 Pension expense for 2026 $ $ 2025 $873,750 875,000 175,000 Cr. 312,500 75,000 30,000 12,500 143,750 625,000 9% 2026 $1,061,250 1,000,000 ? 300,000 112,500 37,500 15,000 150,000 687,500 9%
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?
Sunland Corporation is a private company with a defined benefit pension plan. The following information is available for Sunland for 2023: Opening balance, DBO Opening balance, plan assets Service cost Employer contributions paid evenly through 2023 Applicable interest or discount rate Actual return on plan assets Actuarial loss due to change in actuarial assumptions $188,000 179,000 eTextbook and Media 52,000 69,000 10% 22,500 12,500 Assuming that Sunland follows IFRS, determine the 2023 effect of the pension plan on defined benefit expense and the company's shareholders' equity. total defined benefit expense and a related decrease in the net income and retained earnings by $ 58400 and
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Pension data for Barry Financial Services Incorporated include the following: Discount rate, 7% Expected return on plan assets, 12% Actual return on plan assets, 11% Service cost, 2024 January 1, 2024: Projected benefit obligation Accumulated benefit obligation Plan assets (fair value) Prior service cost- AOCI (2024 amortization, $50) Net gain- AOCI (2024 amortization, $12) There were no changes in actuarial assumptions. Complete this question by entering your answers in the tabs below. Required 1 Required 2 December 31, 2024: Cash contributions to pension fund, December 31, 2024 Benefit payments to retirees, December 31, 2024 Required: 1. Determine pension expense for 2024. 2. Prepare the journal entries to record (a) pension expense, (b) gains and losses (if any), (c) funding, and (d) retiree benefits for 2024. Pension expense ($ in thousands) $ $ 480 0.0 3,150 2,850 3,250 410 500 Determine pension expense for 2024. Note: Amounts to be deducted should be indicated with a minus sign.…

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