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.

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Answer 1

Question

Chapter 19, Problem 19.9E

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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financial accounting

SUBJECT FINANCIAL ACCOUNTING

Fraps Manufacturing produces a product that can either be sold as is or processed further. Fraps has already spent $90,000 to produce 2,000 units that can be sold now for $120,000 to another manufacturer. Alternatively, Fraps can process the units further at an incremental cost of $280 per unit. If Fraps processes further, the units can be sold for $500 each. Compute the incremental income if Fraps processes further.correct answer

Answer 2

Question

Chapter 19, Problem 19.9E

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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Answer 3

Question

Chapter 19, Problem 19.9E

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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Answer 4

Question

Chapter 19, Problem 19.9E

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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Answer 5

Chapter 19, Problem 19.9E

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.

Answer 6

Chapter 19, Problem 19.9E

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.

Answer 7

Chapter 19, Problem 19.9E

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.

Answer 8

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.

Answer 9

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.

Answer 10

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.

Answer 11

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.

Answer 12

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.

Answer 13

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.

Answer 14

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Answer 15

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Answer 16

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Answer 17

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 explains journalizing as the process of recording the transactions of an organization in a chronological order.

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Chapter 19 Solutions