Concept explainers
a.
The value of total pension cost for the year.
Given information:
Fair value of plan assets at the beginning is $954,500.
Value of PBO at the beginning is $1,020,340.
Service cost is $81,500.
Settlement rate is 10%.
Expected rate on plan assets is 16%.
Actual return on plan assets is $123,400.
Contribution for the year is $67,480.
Benefit paid for the year is $47,440.
AOCI related to prior service cost at the beginning is $65,840.
Amortization of prior service cost is $15,500.
Actuarial loss is $78,625.
Average remaining service life of the employee base is 10 years.
b.
The value of closing balance of plan assets and PBO and indicate the funded status of the plan.
Given information:
Fair value of plan assets at the beginning is $954,500.
Value of PBO at the beginning is $1,020,340.
Service cost is $81,500.
Settlement rate is 10%.
Expected rate on plan assets is 16%.
Actual return on plan assets is $123,400.
Contribution for the year is $67,480.
Benefit paid for the year is $47,440.
AOCI related to prior service cost at the beginning is $65,840.
Amortization of prior service cost is $15,500.
Actuarial loss is $78,625.
Average remaining service life of the employee base is 10 years.
c.
The value of closing balance for accumulated other comprehensive income.
Given information:
Fair value of plan assets at the beginning is $954,500.
Value of PBO at the beginning is $1,020,340.
Service cost is $81,500.
Settlement rate is 10%.
Expected rate on plan assets is 16%.
Actual return on plan assets is $123,400.
Contribution for the year is $67,480.
Benefit paid for the year is $47,440.
AOCI related to prior service cost at the beginning is $65,840.
Amortization of prior service cost is $15,500.
Actuarial loss is $78,625.
Average remaining service life of the employee base is 10 years.
d.
To prepare: The
Given information:
Fair value of plan assets at the beginning is $954,500.
Value of PBO at the beginning is $1,020,340.
Service cost is $81,500.
Settlement rate is 10%.
Expected rate on plan assets is 16%.
Actual return on plan assets is $123,400.
Contribution for the year is $67,480.
Benefit paid for the year is $47,440.
AOCI related to prior service cost at the beginning is $65,840.
Amortization of prior service cost is $15,500.
Actuarial loss is $78,625.
Average remaining service life of the employee base is 10 years.
e.
The reconciliation of the closing balance in accumulated other comprehensive income.
Given information:
Fair value of plan assets at the beginning is $954,500.
Value of PBO at the beginning is $1,020,340.
Service cost is $81,500.
Settlement rate is 10%.
Expected rate on plan assets is 16%.
Actual return on plan assets is $123,400.
Contribution for the year is $67,480.
Benefit paid for the year is $47,440.
AOCI related to prior service cost at the beginning is $65,840.
Amortization of prior service cost is $15,500.
Actuarial loss is $78,625.
Average remaining service life of the employee base is 10 years.
Want to see the full answer?
Check out a sample textbook solution
Chapter 19 Solutions
INTERMEDIATE ACCOUNTING-MYLAB W/ETEXT
- What is the primary purpose of financial accounting? A) To track inventoryB) To assist internal managementC) To provide information to external usersD) To calculate taxesno aiarrow_forwardWhat is the primary purpose of financial accounting? A) To track inventoryB) To assist internal managementC) To provide information to external usersD) To calculate taxesarrow_forwardWhat is the primary purpose of financial accounting? A) To track inventoryB) To assist internal managementC) To provide information to external usersD) To calculate taxesneedarrow_forward
- What is the primary purpose of financial accounting? A) To track inventoryB) To assist internal managementC) To provide information to external usersD) To calculate taxesno aiarrow_forwardWhat is the primary purpose of financial accounting? A) To track inventoryB) To assist internal managementC) To provide information to external usersD) To calculate taxesarrow_forwardWhich of the following accounts is a liability? A) EquipmentB) Service RevenueC) Notes PayableD) Retained Earningsneedarrow_forward
- Which of the following accounts is a liability? A) EquipmentB) Service RevenueC) Notes PayableD) Retained Earningsno aiarrow_forwardWhich of the following accounts is a liability? A) EquipmentB) Service RevenueC) Notes PayableD) Retained Earningsarrow_forwardWhat happens when a company receives cash before providing services? A) Record revenueB) Record accounts receivableC) Record unearned revenueD) No entry correctarrow_forward
- What happens when a company receives cash before providing services? A) Record revenueB) Record accounts receivableC) Record unearned revenueD) No entryno aiarrow_forwardWhat happens when a company receives cash before providing services? A) Record revenueB) Record accounts receivableC) Record unearned revenueD) No entryarrow_forwardWhich of the following accounts is a liability? A) EquipmentB) Service RevenueC) Notes PayableD) Retained Earningsneedarrow_forward
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning