Financial & Managerial Accounting
13th Edition
ISBN: 9781285866307
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 10, Problem 10.18EX
To determine
Pension: Pension is a cash payment given to the employees at the time of their retirement. The pension benefits are accrued based on years of service, annual compensation and age, and based on the employer’s pension plan.
Defined benefit pension plan:
- In this plan, the employee is getting a fixed annual amount by the company based on a formula.
- In this plan, the employer is required to pay the fund to the employees after their retirement as a pension benefit.
To explain: The meaning of $5,599 million unfunded pension liability and $434 million periodic pension cost.
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In a recent year’s financial statements, Procter & Gamble showed an unfunded pension liability of $5,599 million and a periodic pension cost of $434 million.Explain the meaning of the $5,599 million unfunded pension liability and the$434 million periodic pension cost.
Use the following Data:
Brunson Corporation Pension Plan
Information for Current Fiscal Year
Beginning balance of plan assets at market value $1,560,000
Actual return on plan assets
Employer's contribution
Distributions to beneficiaries
Service cost
Interest cost
Changes in benefits and assumptions
Beginning balance of the PBO
At the beginning of the year, the pension plan is:
a. overfunded by $20,000.
b. overfunded by $35,000.
c. underfunded by $20,000.
d. underfunded by $35,000.
$210,000
$150,000
$75,000
$125,000
$156,000
$35,000
$1,580,000
Analyzing Pension Gain/Loss
Spears Company presents the following information related to its pension plan for the year, before recording pension expense.
Projected Benefit Obligation, Jan. 1: $300,000 Cr
Projected Benefit Obligation, Dec. 31: 325,000 Cr
Accumulated OCI-Pension Gain/Loss, Jan. 1: 12,000 Cr
Plan Assets, Jan. 1: 280,000 Dr
Plan Assets, Dec.31: 295,000 Dr
Actuarial loss on PBO, determined at Dec. 31: $4,200
Contributions to pension fund: 10,000
Benefits paid: 15,000
Average remaining service period of employees, current and next year: 20 years
Expected rate of return: 10%
Required:
a, Determine the amortization of Accumulated OCI-Pension Gain/Loss for the current year, usign (1) corridor (minimum amortization) and (2) straight-line amortization based on average remaining service period.
Note: Do not use negative signs with your answers.
1. Amortization under the corridor approach.
2. Amortization under the straight-line method.
b. Determine the Accumulated OCI-Pension…
Chapter 10 Solutions
Financial & Managerial Accounting
Ch. 10 - Does a discounted note payable provide credit...Ch. 10 - Employees are subject to taxes withheld from their...Ch. 10 - Prob. 3DQCh. 10 - Prob. 4DQCh. 10 - Prob. 5DQCh. 10 - Prob. 6DQCh. 10 - To match revenues and expenses properly, should...Ch. 10 - Prob. 8DQCh. 10 - When should the liability associated with a...Ch. 10 - Prob. 10DQ
Ch. 10 - Proceeds from notes payable On October 12,...Ch. 10 - Proceeds from notes payable On January 26, Nyree...Ch. 10 - Prob. 10.2APECh. 10 - Prob. 10.2BPECh. 10 - Prob. 10.3APECh. 10 - Prob. 10.3BPECh. 10 - Prob. 10.4APECh. 10 - Prob. 10.4BPECh. 10 - Prob. 10.5APECh. 10 - Prob. 10.5BPECh. 10 - Prob. 10.6APECh. 10 - Prob. 10.6BPECh. 10 - Prob. 10.7APECh. 10 - Prob. 10.7BPECh. 10 - Quick ratio Nabors Company reported the following...Ch. 10 - Quick ratio Adieu Company reported the following...Ch. 10 - Current liabilities Bon Nebo Co. sold 25,000...Ch. 10 - Entries for discounting notes payable Griffin...Ch. 10 - Evaluating alternative notes A borrower has two...Ch. 10 - Entries for notes payable A business issued a...Ch. 10 - Entries for discounted note payable A business...Ch. 10 - Prob. 10.6EXCh. 10 - Prob. 10.7EXCh. 10 - Calculate payroll An employee earns 32 per hour...Ch. 10 - Prob. 10.9EXCh. 10 - Prob. 10.10EXCh. 10 - Payroll tax entries According to a summary of the...Ch. 10 - Prob. 10.12EXCh. 10 - Prob. 10.13EXCh. 10 - Prob. 10.14EXCh. 10 - Prob. 10.15EXCh. 10 - Accrued vacation pay A business provides its...Ch. 10 - Pension plan entries Yuri Co. operates a chain of...Ch. 10 - Prob. 10.18EXCh. 10 - Accrued product warranty Lowe Manufacturing Co....Ch. 10 - Prob. 10.20EXCh. 10 - Prob. 10.21EXCh. 10 - Quick ratio Gmeiner Co. had the following current...Ch. 10 - Prob. 10.23EXCh. 10 - Liability transactions The following items were...Ch. 10 - Entries for payroll and payroll taxes The...Ch. 10 - Wage and tax statement data on employer FICA tax...Ch. 10 - Payroll register The following data for Throwback...Ch. 10 - Payroll accounts and year-end entries The...Ch. 10 - Prob. 10.1BPRCh. 10 - Entries for payroll and payroll taxes The...Ch. 10 - Prob. 10.3BPRCh. 10 - Prob. 10.4BPRCh. 10 - Payroll accounts and year-end entries The...Ch. 10 - Prob. 1CPPCh. 10 - Ethics and professional conduct in business Tonya...Ch. 10 - Prob. 10.2CPCh. 10 - Prob. 10.3CPCh. 10 - Prob. 10.5CP
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