The following selected post-retirement benefit accounts were lifted from the 2021 unadjusted trial balance of ENN Corporation. No adjusting entry had been made yet at year end in relation the post- retirement benefits related accounts. Accrued Pension Expense, January 1, 2021 Pension expense for 2021, amount contributed to the plan P624,800 450,000 Additional information: The memorandum account balances and other off-books transactions are as follows: Plan asset at fair market value, January 1, 2021 Accumulated benefit obligation at present value, January 1, 2021 Payments to retirees at scheduled retirement in 2021 Current service cost P 2,650,800 P 3,275,600 P 560,000 P 480,000 Settlement rate 12% Actuarial loss on plan asset Actuarial loss on accumulated benefit obligation P 120,000 P 80,000 There had been no remeasurement (actuarial) gain or loss from plan asset and accumulated retirement obligation in the prior years. The asset ceiling at the beginning and at the end of the year was at P250,000 and P350,000, respectively.
The following selected post-retirement benefit accounts were lifted from the 2021 unadjusted trial balance of ENN Corporation. No adjusting entry had been made yet at year end in relation the post- retirement benefits related accounts. Accrued Pension Expense, January 1, 2021 Pension expense for 2021, amount contributed to the plan P624,800 450,000 Additional information: The memorandum account balances and other off-books transactions are as follows: Plan asset at fair market value, January 1, 2021 Accumulated benefit obligation at present value, January 1, 2021 Payments to retirees at scheduled retirement in 2021 Current service cost P 2,650,800 P 3,275,600 P 560,000 P 480,000 Settlement rate 12% Actuarial loss on plan asset Actuarial loss on accumulated benefit obligation P 120,000 P 80,000 There had been no remeasurement (actuarial) gain or loss from plan asset and accumulated retirement obligation in the prior years. The asset ceiling at the beginning and at the end of the year was at P250,000 and P350,000, respectively.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
5. What is the total pension expense in 2021?
6. How much from the pension expense is recognized in the 2021 profit or loss?
7. How much from the pension expense is recognized in the 2021 other comprehensive
income or loss?
Transcribed Image Text:The following selected post-retirement benefit accounts were lifted from the 2021 unadjusted trial
balance of ENN Corporation. No adjusting entry had been made yet at year end in relation the post-
retirement benefits related accounts.
Accrued Pension Expense, January 1, 2021
Pension expense for 2021, amount contributed to the plan
P624,800
450,000
Additional information:
The memorandum account balances and other off-books transactions are as follows:
P 2,650,800
P 3,275,600
P 560,000
P 480,000
Plan asset at fair market value, January 1, 2021
Accumulated benefit obligation at present value, January 1, 2021
Payments to retirees at scheduled retirement in 2021
Current service cost
Settlement rate
12%
Actuarial loss on plan asset
Actuarial loss on accumulated benefit obligation
P 120,000
P 80,000
There had been no remeasurement (actuarial) gain or loss from plan asset and accumulated
retirement obligation in the prior years. The asset ceiling at the beginning and at the end of the year
was at P250,000 and P350,000, respectively.
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