The following pension-related data pertain to Metro Recreation's noncontributory, defined benefit pension plan for 2021: Projected benefit obligation Accumulated benefit obligation Plan assets (fair value) Interest (discount) rate, 88 Expected return on plan assets, 10% Prior service cost-AOCI (from Dec. 31, 2020, amendment) Net loss-AOCI if Average remaining service life: 10 years Gain due to changes in actuarial assumptions Contributions to pension fund (end of year) Pension benefits paid (end of year) ($ in 000s) Balance, Jan. 1, 2021 Service cost Interest cost Expected return on assets Adjust for: Loss on assets Required: Prepare a pension spreadsheet that shows the relationships among the various pension balances, shows the changes in those balances, and computes pension expense for 2021. (Enter credit amounts with a minus sign and debit amounts with a positive sign. Enter your answers in thousands (i.e. 200,000 should be entered as 200).) Amortization of: Question no....pages ^ PBO Plan Assets Prior Service Cost-AOCI Prev 47 Question no....pages. ($ in 000s) A Jan. 1 $5,500 3,785 6,630 980 683 Net Loss- AOCI Dec. 31 35 of 39 $5,780 4,090 7,075 66 480 435 Pension Expense # Cash Next > Net Pension (Liability) / Asset

The following pension-related data pertain to Metro Recreation's noncontributory, defined benefit pension plan for 2021: Projected benefit obligation Accumulated benefit obligation Plan assets (fair value) Interest (discount) rate, 88 Expected return on plan assets, 10% Prior service cost-AOCI (from Dec. 31, 2020, amendment) Net loss-AOCI if Average remaining service life: 10 years Gain due to changes in actuarial assumptions Contributions to pension fund (end of year) Pension benefits paid (end of year) ($ in 000s) Balance, Jan. 1, 2021 Service cost Interest cost Expected return on assets Adjust for: Loss on assets Required: Prepare a pension spreadsheet that shows the relationships among the various pension balances, shows the changes in those balances, and computes pension expense for 2021. (Enter credit amounts with a minus sign and debit amounts with a positive sign. Enter your answers in thousands (i.e. 200,000 should be entered as 200).) Amortization of: Question no....pages ^ PBO Plan Assets Prior Service Cost-AOCI Prev 47 Question no....pages. ($ in 000s) A Jan. 1 $5,500 3,785 6,630 980 683 Net Loss- AOCI Dec. 31 35 of 39 $5,780 4,090 7,075 66 480 435 Pension Expense # Cash Next > Net Pension (Liability) / Asset

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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Pharoah Company adopts acceptable accounting for its defined benefit pension plan on January 1, 2019, with the following beginning balances: plan assets $199,200; projected benefit obligation $248,000. Other data relating to 3 years' operation of the plan are as follows. Annual service cost Settlement rate and expected rate of return Actual return on plan assets Annual funding (contributions) Benefits paid Prior service cost (plan amended, 1/1/20) Amortization of prior service cost Change in actuarial assumptions establishes a December 31, 2021, projected benefit obligation of: 2019 $16,200 10 % 18,200 16,200 13,700 2020 $19,000 10 % 21,990 40,200 16,100 161,100 54,000 2021 $26,200 10 % 23,900 48,300 20,700 42,300 511,800
The following defined pension data of Waterway Corp. apply to the year 2020. Projected benefit obligation, 1/1/20 (before amendment) $509,000 Plan assets, 1/1/20 496,000 Pension liability 13,000 On January 1, 2020, Waterway Corp., through plan amendment, grants prior service benefits having a present value of 123,000 Settlement rate 9 % Service cost 58,300 Contributions (funding) 59,600 Actual (expected) return on plan assets 48,300 Benefits paid to retirees 43,500 Prior service cost amortization for 2020 16,400 For 2020, prepare a pension worksheet for Waterway Corp. that shows the journal entry for pension expense and the year-end balances in the related pension accounts. (Enter all amounts as positive.) WATERWAY CORP.Pension Worksheet—2020 General Journal Entries Memo Record Items Annual PensionExpense Cash OCI–Prior
Pension data for Sterling Properties include the following: ($ in thousands) Service cost, 2024 $ 116 Projected benefit obligation, January 1, 2024 550 Plan assets (fair value), January 1, 2024 600 Prior service cost—AOCI (2024 amortization, $7) 86 Net loss—AOCI (2024 amortization, $2) 107 Interest rate, 6% Expected return on plan assets, 10% Actual return on plan assets, 11% Required: Assume Sterling Properties prepares its financial statements according to International Financial Reporting Standards (IFRS). The interest rate on high-grade corporate bonds is 6%. Determine the net pension cost. Note: Enter your answer in thousands (i.e., 10,000 should be entered as 10).
The following information relates to the pension plan for the employees of Blossom Co.: Accum, beneht obligation Projected benefit obligation Fair value of plan assets AOCI - net (gain) or loss Settlement rate (for year) Expected rate of return (for year) 1/1/20 The corridor for 2021 is $10240000 10765000 9925000 -0- 12/31/20 $10660000 11458000 11920000 (1612000) 9% 9% 12/31/21 $ 13600000 15007000 13054000 (1780000) 9% 8% Blossom estimates that the average remaining service life is 16 years. Blossom's contribution was $1423000 in 2021 and benefits paid were $1087000.
The following information relates to the pension plan for the employees of Cullumber Company: Accum. benefit obligation Projected benefit obligation Fair value of plan assets AOCI - net (gain) or loss Settlement rate (for year) Expected rate of return (for year) The corridor for 2026 is 1/1/25 $1102000. $1073600. $1410700. $1212200. $9340000 9865000 9025000 0 12/31/25 $9760000 10558000 11020000 (1522000) 11% 8% 12/31/26 $12700000 14107000 12154000 (1690000) 11% Cullumber estimates that the average remaining service life is 16 years. Cullumber's contribution was $1323000 in 2026 and benefits paid were $987000. 7%
Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2021 (the end of Beale's fiscal year), the following pension-related data were available: Projected Benefit Obligation Balance, January 1, 2021 Service cost Interest cost, discount rate, 5% Gain due to changes in actuarial assumptions in 2021 Pension benefits paid. Balance, December 31, 2021 Plan Assets Balance, January 1, 2021 Actual return on plan assets (Expected return on plan assets, $48) Cash contributions Pension benefits paid Balance, December 31, 2021 January 1, 2021, balances: Pension asset Prior service cost-AOCI (amortization $5 per year) Net gain-AOCI (any amortization over 10 years) ($ in millions) $ 710 43 84 (33) $804 ($ in millions) $ 660 68 33 (17) (33) $711 ($ in millions) $ 50 25 121
The following information is available for the pension plan of Carla Vista Company for the year 2025. Actual and expected return on plan assets Benefits paid to retirees Contributions (funding) Interest/discount rate Prior service cost amortization Projected benefit obligation, January 1, 2025 Service cost (a) Compute pension expense for the year 2025. $13,800 40,000 91,300 9% 8,200 496,000 65,400
Computing Pension Expense, Gain/Loss Amortization, PBO, and Plan Asset Balances The following data relate to a defined benefit pension plan for Hollistir Co. Fair value of plan assets, Jan. 1, 2020 $9,600 PBO Jan. 1, 2020, not including any items below 12,000 PSC from amendment dated Jan. 1, 2020, (10 years is the amortization period) 6,000 Gain from change in actuarial assumptions, computed as of Jan. 1, 2020 1,800 Actual return on plan assets, 2020 1,200 Contributions to plan assets in 2020 2,400 Benefits paid to retirees in 2020 3,000 Service cost for 2020 5,400 Discount rate 8% Expected rate of return on plan assets 10% Required a. Compute pension expense for 2020. Hollistir amortizes the full pension gain/loss over average service life of 15 years, using the straight-line method. Pension expense, 2020 b. Compute PBO at December 31, 2020. PBO, Dec. 31, 2020 c. Compute fair value of plan assets at December 31, 2020. Fair…
Flint Enterprises provides the following information relative to its defined benefit pension plan. Balances or Values at December 31, 2020 Projected benefit obligation Accumulated benefit obligation Fair value of plan assets Accumulated OCI (PSC) Accumulated OCI-Net loss (1/1/20 balance, 0) Pension liability Other pension plan data for 2020: Service cost Prior service cost amortization Actual return on plan assets Expected return on plan assets Interest on January 1, 2020, projected benefit obligation Contributions to plan Benefits paid $2,743,700 1,980,300 2,290,800 212,000 45,800 451,900 $94,300 42,200 129,800 175,600 254,300 92,700 139,800
Oriole Company provides the following selected information related to its defined benefit pension plan for 2025. Pension asset/liability (January 1) $24,900 Cr. Accumulated benefit obligation (December 31) 402,300 Actual and expected return on plan assets 10,900 Contributions (funding) in 2025 151,500 Fair value of plan assets (December 31) 805,100 Settlement rate 10% Projected benefit obligation (January 1) 697,100 Service cost 80,510 (a1) × Your answer is incorrect. Compute pension expense. Pension expense for 2025 $ 149320
Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2021 (the end of Beale's fiscal year), the following pension-related data were available: Projected Benefit Obligation ($ in millions) Balance, January 1, 2021 $ 480 Service cost 50 Interest cost, discount rate, 5% 24 Gain due to changes in actuarial assumptions in 2021 (8 ) Pension benefits paid (24 ) Balance, December 31, 2021 $ 522 Plan Assets ($ in millions) Balance, January 1, 2021 $ 500 Actual return on plan assets 34 (Expected return on plan assets, $39) Cash contributions 75 Pension benefits paid (24 ) Balance, December 31, 2021 $ 585 January 1, 2021, balances: ($ in millions) Pension asset $ 20 Prior service cost—AOCI (amortization $6 per year) 42 Net gain—AOCI (any amortization over 10 years) 90 Required:1. to 3. Prepare the 2021…
Sunland Company provides the following information about its defined benefit pension plan for the year 2025. Service cost $91,400 Contribution to the plan 102,900 Prior service cost amortization 9,600 Actual and expected return on plan assets 64,900 Benefits paid 40,600 Plan assets at January 1, 2025 632,300 Projected benefit obligation at January 1, 2025 686,100 Accumulated OCI (PSC) at January 1, 2025 147,300 Interest/discount (settlement) rate 11% Compute the pension expense for the year 2025. Pension expense for 2025 :$__?__