W13-4 Funny Company received the following selected information from its pension plan trusteeconcerning the operation of the company's defined benefit pension plan for the year ended December 31,2019.January 1, 2019P 1,500,000December 31, 2019P 1,527,000Projected benefit obligationMarket related and fair value of plan assetsAccumulated benefit obligationAccumulated OCI(G/L) Net gain800,0001,130,0001,600,0001,720,000(200,000)The service cost component of pension expense for employee services rendered in the current yearamounted to P77, 000 and the amortization of prior service cost was P120, 000. The company's actualfunding (contributions) of the plan in 2019 amounted to P250, 000. The expected return on plan assets andthe actual rate were both 10%; the interest/discount (settlement) rate was 10%. Accumulated othercomprehensive income (PSC) had a balance of Pl, 200,000 on January 1, 2019. Assume no benefits paid in2019.Instructions:(a) Determine the amounts of the components of pension expense that should be recognized by the companyin 2019.(b) Prepare the journmal entry to record pension expense and the employer's contribution to the pension planin 2019

W13-4 Funny Company received the following selected information from its pension plan trustee concerning the operation of the company's defined benefit pension plan for the year ended December 31, 2019. January 1, 2019 P 1,500,000 December 31, 2019 P 1,527,000 Projected benefit obligation Market related and fair value of plan assets Accumulated benefit obligation Accumulated OCI(G/L) Net gain 800,000 1,600,000 1,130,000 1,720,000 (200,000) The service cost component of pension expense for employee services rendered in the current year amounted to P77, 000 and the amortization of prior service cost was PI20, 000. The company's actual funding (contributions) of the plan in 2019 amounted to P250, 000. The expected return on plan assets and the actual rate were both 10%; the interest/discount (settlement) rate was 10%. Accumulated other comprehensive income (PSC) had a balance of PI, 200,000 on January 1, 2019. Assume no benefits paid in 2019. Instructions: (a) Determine the amounts of the components of pension expense that should be recognized by the company in 2019. (b) Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2019

W13-4 Funny Company received the following selected information from its pension plan trustee concerning the operation of the company's defined benefit pension plan for the year ended December 31, 2019. January 1, 2019 P 1,500,000 December 31, 2019 P 1,527,000 Projected benefit obligation Market related and fair value of plan assets Accumulated benefit obligation Accumulated OCI(G/L) Net gain 800,000 1,600,000 1,130,000 1,720,000 (200,000) The service cost component of pension expense for employee services rendered in the current year amounted to P77, 000 and the amortization of prior service cost was PI20, 000. The company's actual funding (contributions) of the plan in 2019 amounted to P250, 000. The expected return on plan assets and the actual rate were both 10%; the interest/discount (settlement) rate was 10%. Accumulated other comprehensive income (PSC) had a balance of PI, 200,000 on January 1, 2019. Assume no benefits paid in 2019. Instructions: (a) Determine the amounts of the components of pension expense that should be recognized by the company in 2019. (b) Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2019

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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The following information is available for WJB Corporation's defined benefit pension plan: Defined benefit obligation, opening balance, accounting basis Fair value of plan assets Current service cost Discount rate Actual return earned on plan assets Contributions (funding) Benefits paid to retirees (a) 2023 2024 Your answer is partially correct. 2025 Asset/Liability Liability Liability 2023 Liability 175,000 165,000 Amount 35,000 7% 8% 44,000 22,200 2024 ? ? $47,250 7% 6% 44,000 On January 1, 2023, WJB amended its pension plan, resulting in past service costs with a present value of $78,400. 25,900 2025 ? Calculate the pension plan's surplus or deficit and the pension liability or asset reported on the December 31, 2023, 2024, and 2025 statements of financial position assuming that WJB accounts for its pension plan under ASPE. (Round answers to O decimal places, e.g. 5,275.) ? $52,500 7% 7% 44,000 30,300
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Sandhill, Inc. received the following information from its pension plan trustee concerning the operation of the company's defined- benefit pension plan for the year ended December 31, 2026: Fair value of pension plan assets Projected benefit obligation Accumulated benefit obligation Accumulated OCI - (Gains/Losses) Actual return on plan assets January 1, 2026 $6000000 $888000 $1080000 $1568000 O $1408000 6800000 1160000 December 31, 2026 $6400000 7280000 1400000 (80000) 160000 The service cost component of pension expense for 2026 is $800000 and the amortization of prior service cost due to an increase in benefits is $88000. The settlement rate is 10%. Assuming that the actual return equals the expected return on plan assets, what is the amount of pension expense for 2026?
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Queation 18 Crane Company received the following selected information from its pension plan trustee concerning the operation of the company’s defined benefit pension plan for the year ended December 31, 2020. January 1, 2020 December 31, 2020 Projected benefit obligation $1,499,000 $1,527,000 Market-related and fair value of plan assets 802,000 1,127,200 Accumulated benefit obligation 1,622,000 1,742,500 Accumulated OCI (G/L)—Net gain 0 (199,900 ) The service cost component of pension expense for employee services rendered in the current year amounted to $78,000 and the amortization of prior service cost was $120,500. The company’s actual funding (contributions) of the plan in 2020 amounted to $245,000. The expected return on plan assets and the actual rate were both 10%; the interest/discount (settlement) rate was 10%. Accumulated other comprehensive income (PSC) had a balance of $1,205,000 on January 1, 2020. Assume no benefits paid in…
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