Concept explainers
(1)
Pension plan: This is the plan devised by corporations to pay the employees an income after their retirement, in the form of pension.
Projected benefit obligation (PBO): This is the estimated present value of future retirement benefits, accumulated based on the future compensation levels.
To mention: The changes in PBO for the qualified plans, for Corporation T, for the years ended January 30, 2016 (2015) and January 31, 2015 (2014)
(2)
Plan assets: The assets which are used to satisfy the postretirement obligation, are held as a pension fund by the trustee, to invest the employer contributions,
To mention: The changes in plan assets for the qualified plans, for Corporation T, for the years ended January 30, 2016 (2015) and January 31, 2015 (2014)
(3)
Funded status: The net difference of the total of projected benefit obligation (PBO) and pension plan assets are referred to as funded status. If the balance of PBO is more than plan assets, the difference is referred to as underfunded status, and reported as net pension liability on the
To indicate: Whether the pension plan of Corporation T are underfunded or overfunded, for the years ended January 30, 2016 (2015) and January 31, 2015 (2014)
(4)
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
To indicate: The components of pension expense for Corporation T, for the years ended January 30, 2016 (2015), January 31, 2015 (2014), and February 1,2014 (2013)
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Chapter 17 Solutions
INTERMEDIATE ACCOUNTING (ACCT 4950)
- On December 31, calculated the payroll, which indicates gross earnings for wages ($460,000), payroll deductions for income tax ($48,000), payroll deductions for FICA ($40,000), payroll deductions for United Way ($6,000), employer contributions for FICA (matching), and state and federal unemployment taxes ($4,000). Employees were paid in cash, but payments for the corresponding payroll deductions have not been made and employer taxes have not yet been recorded. Collected rent revenue of $2,100 on December 10 for office space that Sandler rented to another business. The rent collected was for 30 days from December 12 to January 10 and was credited in full to Deferred Revenue. Required: 1. & 2. Prepare the entries required on December 31 to record payroll, the collection of rent on December 10 and adjusting journal entry on December 31. 3. Show how any liabilities related to these items should be reported on the company’s balance sheet at December 31arrow_forwardBrihteres problem i have to need answer.arrow_forwardSolve it by using proper methodarrow_forward
- Jbl company problem sopve it.arrow_forwardHow much intrest bank collect?arrow_forwardRequired information Skip to question [The following information applies to the questions displayed below.]XYZ declared a $1 per share dividend on August 15. The date of record for the dividend was September 1 (the stock began selling ex-dividend on September 2). The dividend was paid on September 10. Ellis is a cash-method taxpayer. Determine if he must include the dividends in gross income under the following independent circumstances. b. Ellis bought 100 shares of XYZ stock on August 1 for $21 per share. Ellis sold his XYZ shares on September 5 for $23 per share. Ellis received the $100 dividend on September 10 (note that even though Ellis didn’t own the stock on September 10, he still received the dividend because he was the shareholder on the record date).arrow_forward
