a.
The treatment of separate conceptual entries for the preceding information as per IFRS.
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 as per IFRS.
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.
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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Chapter 19 Solutions
Intermediate Accounting - Myaccountinglab - Pearson Etext Access Card Student Value Edition
- Please help me solve this financial accounting problem with the correct financial process.arrow_forwardPlease provide the answer to this general accounting question using the right approach.arrow_forwardHarper Co. paid $620 in dividends and $740 in interest this past year. Common stock increased by $300, and retained earnings increased by $185. What is Harper Co.'s net income for the year? a) $805 b) $620 c) $905 d) $185 e) $1,125arrow_forward
- A company generates $4,500,000 in sales revenue, with an operating income of $320,000 and average operating assets of $1,600,000. The company requires a minimum return of 12% on its operating assets. What is the company's residual income?arrow_forwardWhat is the total amount of product costarrow_forwardCan you solve this general accounting problem using accurate calculation methods?arrow_forward
- At the end of the year, the company has Assets of $320,000 and Liabilities of $185,000. At the beginning of the year, the company has Owners' Equity of $110,000. How much did Owners' Equity change by the end of the year? Did Owner's Equity increase or decrease?arrow_forwardWhat amount should the bond issue processed increase shareholders equity ?arrow_forwardCompute the total overhead variancearrow_forward
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning