Pension expense : Pension expense is an expense to the employer paid as compensation after the completion of services performed by the employees. Pension expense includes the following components: Service cost Interest cost Expected return on plan assets Amortization of prior service cost Amortization of net loss or net gain Journal entry : Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically. Debit and credit rules: Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts. Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts. To journalize : H’s pension expense, if service cost is $10,000,000, interest cost is $6,000,000, expected return on assets is $4,000,000, and amortization of net loss is $2,000,000.

Question

Grunewald Industries sells on terms of 3/10, net 40. Gross sales last year were $4,161,000 and accounts receivable averaged $370,500. Half of Grunewald's customers paid on the 10th day and took discounts. What are the nominal and effective costs of trade credit to Grunewald's nondiscount customers? (Hint: Calculate daily sales based on a 365-day year, calculate the average receivables for discount customers, and then find the DSO for the nondiscount customers.) Do not round intermediate calculations. Round your answers to two decimal places. Nominal cost of trade credit: % Effective cost of trade credit: %

Answer 1

Question

Chapter 17, Problem 17.4E

(1)

To determine

Pension expense: Pension expense is an expense to the employer paid as compensation after the completion of services performed by the employees.

Pension expense includes the following components:

Service cost

Interest cost

Expected return on plan assets

Amortization of prior service cost

Amortization of net loss or net gain

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To journalize: H’s pension expense, if service cost is $10,000,000, interest cost is $6,000,000, expected return on assets is $4,000,000, and amortization of net loss is $2,000,000.

(2)

To determine

To journalize: H’s pension expense, if service cost is $10,000,000, interest cost is $6,000,000, expected return on assets is $4,000,000, and amortization of net gain is $2,000,000

(3)

To determine

To journalize: H’s pension expense, if service cost is $10,000,000, interest cost is $6,000,000, expected return on assets is $4,000,000, and amortization of net gain is $2,000,000.

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Grunewald Industries sells on terms of 3/10, net 40. Gross sales last year were $4,161,000 and accounts receivable averaged $370,500. Half of Grunewald's customers paid on the 10th day and took discounts. What are the nominal and effective costs of trade credit to Grunewald's nondiscount customers? (Hint: Calculate daily sales based on a 365-day year, calculate the average receivables for discount customers, and then find the DSO for the nondiscount customers.) Do not round intermediate calculations. Round your answers to two decimal places. Nominal cost of trade credit: % Effective cost of trade credit: %

Please provide the accurate answer to this financial accounting problem using appropriate methods.

Please help me solve this general accounting question using the right accounting principles.

Answer 2

Question

Chapter 17, Problem 17.4E

(1)

To determine

Pension expense: Pension expense is an expense to the employer paid as compensation after the completion of services performed by the employees.

Pension expense includes the following components:

Service cost

Interest cost

Expected return on plan assets

Amortization of prior service cost

Amortization of net loss or net gain

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To journalize: H’s pension expense, if service cost is $10,000,000, interest cost is $6,000,000, expected return on assets is $4,000,000, and amortization of net loss is $2,000,000.

(2)

To determine

To journalize: H’s pension expense, if service cost is $10,000,000, interest cost is $6,000,000, expected return on assets is $4,000,000, and amortization of net gain is $2,000,000

(3)

To determine

To journalize: H’s pension expense, if service cost is $10,000,000, interest cost is $6,000,000, expected return on assets is $4,000,000, and amortization of net gain is $2,000,000.

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Answer 3

Question

Chapter 17, Problem 17.4E

(1)

To determine

Pension expense: Pension expense is an expense to the employer paid as compensation after the completion of services performed by the employees.

Pension expense includes the following components:

Service cost

Interest cost

Expected return on plan assets

Amortization of prior service cost

Amortization of net loss or net gain

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To journalize: H’s pension expense, if service cost is $10,000,000, interest cost is $6,000,000, expected return on assets is $4,000,000, and amortization of net loss is $2,000,000.

(2)

To determine

To journalize: H’s pension expense, if service cost is $10,000,000, interest cost is $6,000,000, expected return on assets is $4,000,000, and amortization of net gain is $2,000,000

(3)

To determine

To journalize: H’s pension expense, if service cost is $10,000,000, interest cost is $6,000,000, expected return on assets is $4,000,000, and amortization of net gain is $2,000,000.

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Answer 4

Question

Chapter 17, Problem 17.4E

(1)

To determine

Pension expense: Pension expense is an expense to the employer paid as compensation after the completion of services performed by the employees.

Pension expense includes the following components:

Service cost

Interest cost

Expected return on plan assets

Amortization of prior service cost

Amortization of net loss or net gain

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To journalize: H’s pension expense, if service cost is $10,000,000, interest cost is $6,000,000, expected return on assets is $4,000,000, and amortization of net loss is $2,000,000.

(2)

To determine

To journalize: H’s pension expense, if service cost is $10,000,000, interest cost is $6,000,000, expected return on assets is $4,000,000, and amortization of net gain is $2,000,000

(3)

To determine

To journalize: H’s pension expense, if service cost is $10,000,000, interest cost is $6,000,000, expected return on assets is $4,000,000, and amortization of net gain is $2,000,000.

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Answer 5

Chapter 17, Problem 17.4E

(1)

To determine

Pension expense: Pension expense is an expense to the employer paid as compensation after the completion of services performed by the employees.

Pension expense includes the following components:

Service cost

Interest cost

Expected return on plan assets

Amortization of prior service cost

Amortization of net loss or net gain

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To journalize: H’s pension expense, if service cost is $10,000,000, interest cost is $6,000,000, expected return on assets is $4,000,000, and amortization of net loss is $2,000,000.

(2)

To determine

To journalize: H’s pension expense, if service cost is $10,000,000, interest cost is $6,000,000, expected return on assets is $4,000,000, and amortization of net gain is $2,000,000

(3)

To determine

To journalize: H’s pension expense, if service cost is $10,000,000, interest cost is $6,000,000, expected return on assets is $4,000,000, and amortization of net gain is $2,000,000.

Answer 6

Chapter 17, Problem 17.4E

(1)

To determine

Pension expense: Pension expense is an expense to the employer paid as compensation after the completion of services performed by the employees.

Pension expense includes the following components:

Service cost

Interest cost

Expected return on plan assets

Amortization of prior service cost

Amortization of net loss or net gain

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To journalize: H’s pension expense, if service cost is $10,000,000, interest cost is $6,000,000, expected return on assets is $4,000,000, and amortization of net loss is $2,000,000.

Answer 7

Chapter 17, Problem 17.4E

(1)

To determine

Pension expense: Pension expense is an expense to the employer paid as compensation after the completion of services performed by the employees.

Pension expense includes the following components:

Service cost

Interest cost

Expected return on plan assets

Amortization of prior service cost

Amortization of net loss or net gain

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To journalize: H’s pension expense, if service cost is $10,000,000, interest cost is $6,000,000, expected return on assets is $4,000,000, and amortization of net loss is $2,000,000.

Answer 8

(2)

To determine

To journalize: H’s pension expense, if service cost is $10,000,000, interest cost is $6,000,000, expected return on assets is $4,000,000, and amortization of net gain is $2,000,000

Answer 9

(2)

To determine

To journalize: H’s pension expense, if service cost is $10,000,000, interest cost is $6,000,000, expected return on assets is $4,000,000, and amortization of net gain is $2,000,000

Answer 10

(3)

To determine

To journalize: H’s pension expense, if service cost is $10,000,000, interest cost is $6,000,000, expected return on assets is $4,000,000, and amortization of net gain is $2,000,000.

Answer 11

(3)

To determine

To journalize: H’s pension expense, if service cost is $10,000,000, interest cost is $6,000,000, expected return on assets is $4,000,000, and amortization of net gain is $2,000,000.

Answer 12

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Ch. 17 - Prob. 17.1Q Ch. 17 - Prob. 17.2Q Ch. 17 - Prob. 17.3Q Ch. 17 - What is the vested benefit obligation?Ch. 17 - Prob. 17.5Q Ch. 17 - Prob. 17.6Q Ch. 17 - Name three events that might change the balance of...Ch. 17 - Prob. 17.8Q Ch. 17 - Prob. 17.9Q Ch. 17 - Prob. 17.10Q

Concept explainers

To journalize: H’s pension expense, if service cost is $10,000,000, interest cost is $6,000,000, expected return on assets is $4,000,000, and amortization of net gain is $2,000,000

To journalize: H’s pension expense, if service cost is $10,000,000, interest cost is $6,000,000, expected return on assets is $4,000,000, and amortization of net gain is $2,000,000.

Chapter 17 Solutions