Intermediate Accounting - Myaccountinglab - Pearson Etext Access Card Student Value Edition
Intermediate Accounting - Myaccountinglab - Pearson Etext Access Card Student Value Edition
1st Edition
ISBN: 9780134047430
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Chapter 19, Problem 19.7E

a.

To determine

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.

To determine

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.

To determine

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 determine

To prepare: The journal entry to record the pension cost.

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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Intermediate Accounting - Myaccountinglab - Pearson Etext Access Card Student Value Edition

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