Yuri Co. operates a chain of gift shops. The company maintains a defined contribution pension plan for its employees. The plan requires quarterly installments to be paid to the funding agent, Whims Funds, by the fifteenth of the month following the end of each quarter. Assume that the pension cost is $203,700 for the quarter ended December 31. a. Journalize the entry to record the accrued pension liability on December 31. Dec. 31 Journalize the entry to record the accrued pension liability payment to the funding agent on January 15. Jan. 15 b. The pension plan where a company pays the employee a fixed annual amount based on a formula is a

Yuri Co. operates a chain of gift shops. The company maintains a defined contribution pension plan for its employees. The plan requires quarterly installments to be paid to the funding agent, Whims Funds, by the fifteenth of the month following the end of each quarter. Assume that the pension cost is $203,700 for the quarter ended December 31. a. Journalize the entry to record the accrued pension liability on December 31. Dec. 31 Journalize the entry to record the accrued pension liability payment to the funding agent on January 15. Jan. 15 b. The pension plan where a company pays the employee a fixed annual amount based on a formula is a

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

Fernando's Furniture Inc. sponsors a defined benefit pension plan for its employees. The plan's trustee reports the following information for calendar 2023: Defined benefit obligation, January 1 Fair value of plan assets, January 1..... Current service cost......... $240,000 180,000 80,000 Actual and expected return on plan assets ....21,000 Contributions .70,000 Benefits paid to retirees. 120,000 Interest (discount) rate..... 10% Past service costs (as of January 1). 10,000 ……………. The corporation uses ASPE. Instructions a) Calculate the amount of the defined benefit expense for 2023, and prepare the required adjusting entries. b) Calculate the surplus or deficit of the plan on December 31, 2023.
Martin Services Company provides its employees vacation benefits and a defined contribution pension plan. Employees earned vacation pay of $40,000 for the period. The pension plan requires a contribution to the plan administrator equal to 10% of employee salaries. Salaries were $500,000 during the period. a. Provide the journal entry for the vacation pay. If an amount box does not require an entry, leave it blank. Vacation Pay Expense fill in the blank 5e6293fdafbafdb_2 fill in the blank 5e6293fdafbafdb_3 Vacation Pay Payable fill in the blank 5e6293fdafbafdb_5 fill in the blank 5e6293fdafbafdb_6 b. Provide the journal entry for the pension benefit. If an amount box does not require an entry, leave it blank. Pension Expense fill in the blank 30546afde038fc5_2 fill in the blank 30546afde038fc5_3 Cash fill in the blank 30546afde038fc5_5 fill in the blank 30546afde038fc5_6
Empty fields company pays its salaried employees monthly on the last day of each month The annual salary payroll for 20-Follows. Compute the following for the payroll of December 31: Employer's OASDI Tax $____________ Employer's HI Tax $_____________
Rachel Company has established a defined benefit pension plan for its employees. Annual payments under the pension plan are equal to 3% of an employee’s highest lifetime salary multiplied by the number of years with the entity. An employee’s salary in 2021 was P300,000. The employee is expected to retire in 10 years and the salary increases are expected to average 4% per year during that period. On December 31, 2021, the employee has worked for 12 years. The appropriate discount rate is 10% and the employee is expected to live for 5 years after retirement. 1. What is the interest cost for 2023? 2. What is the projected benefit obligation on December 31, 2024?
Three employees of the Horizon Distributing Company will receive annual pension payments from the company when they retire. The employees will receive their annual payments for as long as they live. Life expectancy for each employee is 15 years beyond retirement. Their names, the amount of their annual pension payments, and the date they will receive their first payment are shown below: Annual Employee Payment Tinkers $ 33,000 Evers Chance 38,000 43,000 Date of First Payment 12/31/2027 12/31/2028 12/31/2029 Required: 1. Compute the present value of the pension obligation to these three employees as of December 31, 2024. Assume a 9% interest rate. 2. The company wants to have enough cash invested at December 31, 2027, to provide for all three employees. To accumulate enough cash, they will make three equal annual contributions to a fund that will earn 9% interest compounded annually. The first contribution will be made on December 31, 2024. Compute the amount of this required annual…
The following information relates to Schmidt Sausage Company's defined benefit pension plan during the current reporting year: Plan assets beginning of the year Expected return on plan assets Actual return on plan assets Cash contributions Amortization of net loss Retiree benefits ($ in millions) Pension plan assets of the year $ 580 58 49 78 9 10 Required: Determine the amount of pension plan assets at fair value on December 31. Note: Enter your answers in millions.
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.
The following facts for Storm plc apply to the pension plan for 2019.1. Annual service cost is 18,0002. Discount Rate is 10%3. Actual return on plan assets is $22,0004. Annual funding contributions are $34,0005. Benefits paid to retirees during the year are $20,5006. Changes in actuarial assumptions establish the end of year defined benefit obligation at $285,000 Required:a. Prepare a pension worksheet using the following table and given the following opening balances. b. Prepare the necessary pension journal entries in accordance with IAS 19 pension Benefits for Storm plc for year ending 2019.
McFriend Inc. records its liabilities for employees’ vacations at the end of each month. McFriend has 50 employees who are paid an average of $176 per day. The company allows 10 paid vacation days per year. For the August 31 payroll, McFriend pays its employees $160,000 for time worked and $10,000 for vacation taken. Required: Prepare the journal entry to record McFriend’s August 31 payroll.
Pearsall Company has a defined benefit pension plan. On December 31 (the end of the fiscal year), the company received the PBO report from the actuary. The following information was included in the report: ending PBO, $115,000; benefits paid to retirees, $14,500; interest cost, $7,500. The discount rate applied by the actuary was 10%. What was the service cost for the year? Multiple Choice $93,000. $47,000, $7,000. $22,000. < Prev 16 of 16 Next MacBook Air
Pension data for David Emerson Enterprises include the following: ($ in millions) Discount rate, 10% Projected benefit obligation, January 1 440 Projected benefit obligation, December 31 545 Accumulated benefit obligation, January 1 380 Accumulated benefit obligation, December 31 495 Cash contributions to pension fund, December 31 230 Benefit payments to retirees, December 31 70 Required: Assuming no change in actuarial assumptions and estimates, determine the service cost component of pension expense for the year ended December 31. Service cost ___________ million
Vacation Pay and Pension Benefits Harvey Company provides its employees with vacation benefits and a defined benefit pension plan. Employees earned vacation pay of $47,800 for the period. The pension formula indicated a pension cost of $345,220. Only $299,500 was contributed to the pension plan administrator. Required: a. Provide the journal entry for the vacation pay. If an amount box does not require an entry, leave it blank. 8 b. Provide the journal entry for the pension benefit. If an amount box does not require an entry, leave it blank. 18