Concept explainers
a.
The treatment of separate conceptual entries for the preceding information.
Giveninformation:
Fair value of plan assets at the beginning is $600,000.
Value of PBO at the beginning is $558,000.
Service cost is $125,800.
Settlement rate is 12%.
Expected rate on plan assets is 9%.
Actual loss on plan assets is $30,100.
Contribution for the year is $45,700.
Benefit paid for the year is $97,440.
Accumulated comprehensive income at the beginning is $42,000.
Prior service cost is $19,690.
Amortization of prior service cost is $7,000.
Actuarial gain is $8,000.
Average remaining service life of the employee base is 15 years.
b.
The value of total pension cost for the year.
Given information:
Fair value of plan assets at the beginning is $600,000.
Value of PBO at the beginning is $558,000.
Service cost is $125,800.
Settlement rate is 12%.
Expected rate on plan assets is 9%.
Actual loss on plan assets is $30,100.
Contribution for the year is $45,700.
Benefit paid for the year is $97,440.
Accumulated comprehensive income at the beginning is $42,000.
Prior service cost is $19,690.
Amortization of prior service cost is $7,000.
Actuarial gain is $8,000.
Average remaining service life of the employee base is 15 years.
c.
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 $600,000.
Value of PBO at the beginning is $558,000.
Service cost is $125,800.
Settlement rate is 12%.
Expected rate on plan assets is 9%.
Actual loss on plan assets is $30,100.
Contribution for the year is $45,700.
Benefit paid for the year is $97,440.
Accumulated comprehensive income at the beginning is $42,000.
Prior service cost is $19,690.
Amortization of prior service cost is $7,000.
Actuarial gain is $8,000.
Average remaining service life of the employee base is 15 years.
d.
To prepare: The
Given information:
Fair value of plan assets at the beginning is $600,000.
Value of PBO at the beginning is $558,000.
Service cost is $125,800.
Settlement rate is 12%.
Expected rate on plan assets is 9%.
Actual loss on plan assets is $30,100.
Contribution for the year is $45,700.
Benefit paid for the year is $97,440.
Accumulated comprehensive income at the beginning is $42,000.
Prior service cost is $19,690.
Amortization of prior service cost is $7,000.
Actuarial gain is $8,000.
Average remaining service life of the employee base is 15 years.
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Chapter 19 Solutions
Intermediate Accounting - Myaccountinglab - Pearson Etext Access Card Student Value Edition
- Consolidation after Several Years On January 1, 2016, Adams Corporation acquired all of the stock of Baker Company. The fair value of Adams’ shares used in the exchange was $37,500,000. At the time of acquisition, the book value of Baker’s shareholders’ equity was $5,000,000, and the book value of Baker’s building (25-year life) exceeded its fair value by $1,000,000. From the date of acquisition to December 31, 2021, Baker had cumulative net income of $1,300,000. For 2022, Baker reported net income of $300,000. Adams uses the complete equity method to account for its investment in Baker. There is no goodwill impairment loss for the period 2016 through 2021, but there is impairment loss of $100,000 in 2022. Baker declared no dividends during the period 2016–2022. Required Prepare the working paper eliminating entries necessary to consolidate the financial statements of Adams and Baker at December 31, 2022. Enter numerical answers using all zeros (do not abbreviate in thousands or in…arrow_forwardGive me the answer in a clear organized table please. Thank you!arrow_forwardGive me the answer in a clear organized table please. Thank you!arrow_forward
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- Activity Based Costing - practice problem Fontillas Instrument, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 300 pressure gauges were produced, and overhead costs of $89,500 were estimated. An analysis of estimated overhead costs reveals the following activities. Activities 1. Materials handling 2. Machine setups Cost Drivers Number of requisitions Number of setups Total cost $35,000 27,500 3. Quality inspections Number of inspections 27,000 $89.500 The cost driver volume for each product was as follows: Cost Drivers Instruments Gauge Total Number of requisitions 400 600 1,000 Number of setups 200 300 500 Number of inspections 200 400 600 Insructions (a) Determine the overhead rate for each activity. (b) Assign the manufacturing overhead costs for April to the two products using activity-based costing.arrow_forwardBodhi Company has three cost pools and two doggie products (leashes and collars). The activity cost pool of ordering has the cost drive of purchase orders. The activity cost pool of assembly has a cost driver of parts. The activity cost pool of supervising has the cost driver of labor hours. The accumulated data relative to those cost drivers is as follows: Expected Use of Estimated Cost Drivers by Product Cost Drivers Overhead Leashes Collars Purchase orders $260,000 70,000 60,000 Parts 400,000 300,000 500,000 Labor hours 300,000 15,000 10,000 $960,000 Instructions: (a) Compute the activity-based overhead rates. (b) Compute the costs assigned to leashes and collars for each activity cost pool. (c) Compute the total costs assigned to each product.arrow_forwardTorre Corporation incurred the following transactions. 1. Purchased raw materials on account $46,300. 2. Raw Materials of $36,000 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $6,800 was classified as indirect materials. 3. Factory labor costs incurred were $55,900, of which $51,000 pertained to factory wages payable and $4,900 pertained to employer payroll taxes payable. 4. Time tickets indicated that $50,000 was direct labor and $5,900 was indirect labor. 5. Overhead costs incurred on account were $80,500. 6. Manufacturing overhead was applied at the rate of 150% of direct labor cost. 7. Goods costing $88,000 were completed and transferred to finished goods. 8. Finished goods costing $75,000 to manufacture were sold on account for $103,000. Instructions Journalize the transactions.arrow_forward
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Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning