The value of total pension cost for the year. Given information: Fair value of plan assets at the beginning is $1,000,500. Value of PBO at the beginning is $945,000. Service cost is $400,000. Expected and actual return on plan assets is $82,500. Contribution for the year is $300,000. Amortization of prior service cost is $80,000.

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Answer 1

Question

Chapter 19, Problem 19.15E

a.

To determine

The value of total pension cost for the year.

Given information:

Fair value of plan assets at the beginning is $1,000,500.

Value of PBO at the beginning is $945,000.

Service cost is $400,000.

Expected and actual return on plan assets is $82,500.

Contribution for the year is $300,000.

Amortization of prior service cost is $80,000.

b.

To determine

To prepare: The journal entry to record current year pension cost.

Given information:

Fair value of plan assets at the beginning is $1,000,500.

Value of PBO at the beginning is $945,000.

Service cost is $400,000.

Expected and actual return on plan assets is $82,500.

Contribution for the year is $300,000.

Amortization of prior service cost is $80,000.

c.

To determine

The value of closing balance of plan assets, PBO, AOCI and funded status of the plan.

Given information:

Fair value of plan assets at the beginning is $1,000,500.

Value of PBO at the beginning is $945,000.

Service cost is $400,000.

Expected and actual return on plan assets is $82,500.

Contribution for the year is $300,000.

Amortization of prior service cost is $80,000.

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L.L. Bean operates two factories that produce its popular Bean boots (also known as "duck boots") in its home state of Maine. Since L.L. Bean prides itself on manufacturing its boots in Maine and not outsourcing, backorders for its boots can be high. In 2014, L.L. Bean sold about 450,000 pairs of the boots. At one point during 2014, it had a backorder level of about 100,000 pairs of boots. L.L. Bean can manufacture about 2,200 pairs of its duck boots each day with its factories running 24/7.In 2015, L.L. Bean expects to sell more than 500,000 pairs of its duck boots. As of late November 2015, the backorder quantity for Bean Boots was estimated to be about 50,000 pairs. Question: Assume that a pair of 8" Bean Boots are ordered on December 3, 2015. The order price is $109. The sales tax rate in the state in which the boots are order is 7%. L.L. Bean ships the boots on January 29, 2016. Assume same-day shipping for the sake of simplicity. On what day would L.L. Bean recognize the…

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2 Question

Answer 2

Question

Chapter 19, Problem 19.15E

a.

To determine

The value of total pension cost for the year.

Given information:

Fair value of plan assets at the beginning is $1,000,500.

Value of PBO at the beginning is $945,000.

Service cost is $400,000.

Expected and actual return on plan assets is $82,500.

Contribution for the year is $300,000.

Amortization of prior service cost is $80,000.

b.

To determine

To prepare: The journal entry to record current year pension cost.

Given information:

Fair value of plan assets at the beginning is $1,000,500.

Value of PBO at the beginning is $945,000.

Service cost is $400,000.

Expected and actual return on plan assets is $82,500.

Contribution for the year is $300,000.

Amortization of prior service cost is $80,000.

c.

To determine

The value of closing balance of plan assets, PBO, AOCI and funded status of the plan.

Given information:

Fair value of plan assets at the beginning is $1,000,500.

Value of PBO at the beginning is $945,000.

Service cost is $400,000.

Expected and actual return on plan assets is $82,500.

Contribution for the year is $300,000.

Amortization of prior service cost is $80,000.

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Answer 3

Question

Chapter 19, Problem 19.15E

a.

To determine

The value of total pension cost for the year.

Given information:

Fair value of plan assets at the beginning is $1,000,500.

Value of PBO at the beginning is $945,000.

Service cost is $400,000.

Expected and actual return on plan assets is $82,500.

Contribution for the year is $300,000.

Amortization of prior service cost is $80,000.

b.

To determine

To prepare: The journal entry to record current year pension cost.

Given information:

Fair value of plan assets at the beginning is $1,000,500.

Value of PBO at the beginning is $945,000.

Service cost is $400,000.

Expected and actual return on plan assets is $82,500.

Contribution for the year is $300,000.

Amortization of prior service cost is $80,000.

c.

To determine

The value of closing balance of plan assets, PBO, AOCI and funded status of the plan.

Given information:

Fair value of plan assets at the beginning is $1,000,500.

Value of PBO at the beginning is $945,000.

Service cost is $400,000.

Expected and actual return on plan assets is $82,500.

Contribution for the year is $300,000.

Amortization of prior service cost is $80,000.

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Answer 4

Question

Chapter 19, Problem 19.15E

a.

To determine

The value of total pension cost for the year.

Given information:

Fair value of plan assets at the beginning is $1,000,500.

Value of PBO at the beginning is $945,000.

Service cost is $400,000.

Expected and actual return on plan assets is $82,500.

Contribution for the year is $300,000.

Amortization of prior service cost is $80,000.

b.

To determine

To prepare: The journal entry to record current year pension cost.

Given information:

Fair value of plan assets at the beginning is $1,000,500.

Value of PBO at the beginning is $945,000.

Service cost is $400,000.

Expected and actual return on plan assets is $82,500.

Contribution for the year is $300,000.

Amortization of prior service cost is $80,000.

c.

To determine

The value of closing balance of plan assets, PBO, AOCI and funded status of the plan.

Given information:

Fair value of plan assets at the beginning is $1,000,500.

Value of PBO at the beginning is $945,000.

Service cost is $400,000.

Expected and actual return on plan assets is $82,500.

Contribution for the year is $300,000.

Amortization of prior service cost is $80,000.

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Answer 5

Chapter 19, Problem 19.15E

a.

To determine

The value of total pension cost for the year.

Given information:

Fair value of plan assets at the beginning is $1,000,500.

Value of PBO at the beginning is $945,000.

Service cost is $400,000.

Expected and actual return on plan assets is $82,500.

Contribution for the year is $300,000.

Amortization of prior service cost is $80,000.

b.

To determine

To prepare: The journal entry to record current year pension cost.

Given information:

Fair value of plan assets at the beginning is $1,000,500.

Value of PBO at the beginning is $945,000.

Service cost is $400,000.

Expected and actual return on plan assets is $82,500.

Contribution for the year is $300,000.

Amortization of prior service cost is $80,000.

c.

To determine

The value of closing balance of plan assets, PBO, AOCI and funded status of the plan.

Given information:

Fair value of plan assets at the beginning is $1,000,500.

Value of PBO at the beginning is $945,000.

Service cost is $400,000.

Expected and actual return on plan assets is $82,500.

Contribution for the year is $300,000.

Amortization of prior service cost is $80,000.

Answer 6

Chapter 19, Problem 19.15E

a.

To determine

The value of total pension cost for the year.

Given information:

Fair value of plan assets at the beginning is $1,000,500.

Value of PBO at the beginning is $945,000.

Service cost is $400,000.

Expected and actual return on plan assets is $82,500.

Contribution for the year is $300,000.

Amortization of prior service cost is $80,000.

Answer 7

Chapter 19, Problem 19.15E

a.

To determine

The value of total pension cost for the year.

Given information:

Fair value of plan assets at the beginning is $1,000,500.

Value of PBO at the beginning is $945,000.

Service cost is $400,000.

Expected and actual return on plan assets is $82,500.

Contribution for the year is $300,000.

Amortization of prior service cost is $80,000.

Answer 8

b.

To determine

To prepare: The journal entry to record current year pension cost.

Given information:

Fair value of plan assets at the beginning is $1,000,500.

Value of PBO at the beginning is $945,000.

Service cost is $400,000.

Expected and actual return on plan assets is $82,500.

Contribution for the year is $300,000.

Amortization of prior service cost is $80,000.

Answer 9

b.

To determine

To prepare: The journal entry to record current year pension cost.

Given information:

Fair value of plan assets at the beginning is $1,000,500.

Value of PBO at the beginning is $945,000.

Service cost is $400,000.

Expected and actual return on plan assets is $82,500.

Contribution for the year is $300,000.

Amortization of prior service cost is $80,000.

Answer 10

c.

To determine

The value of closing balance of plan assets, PBO, AOCI and funded status of the plan.

Given information:

Fair value of plan assets at the beginning is $1,000,500.

Value of PBO at the beginning is $945,000.

Service cost is $400,000.

Expected and actual return on plan assets is $82,500.

Contribution for the year is $300,000.

Amortization of prior service cost is $80,000.

Answer 11

c.

To determine

The value of closing balance of plan assets, PBO, AOCI and funded status of the plan.

Given information:

Fair value of plan assets at the beginning is $1,000,500.

Value of PBO at the beginning is $945,000.

Service cost is $400,000.

Expected and actual return on plan assets is $82,500.

Contribution for the year is $300,000.

Amortization of prior service cost is $80,000.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 19 - What is the allocation period used to expense...Ch. 19 - How do companies account for stock-based...Ch. 19 - Do companies with equity-based compensation plans...Ch. 19 - When accounting for employee stock options, will a...Ch. 19 - Prob. 19.5Q Ch. 19 - Prob. 19.6Q Ch. 19 - Prob. 19.7Q Ch. 19 - Prob. 19.8Q Ch. 19 - Prob. 19.9Q Ch. 19 - Prob. 19.10Q

Solution Summary: The author calculates the value of pension cost for the year ending amounts to 448,676. Journalizing is the process of recording the transactions of an organization in a chronological order.

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