INTERM.ACCT.:REPORTING...-CENGAGENOWV2
3rd Edition
ISBN: 9781337909358
Author: WAHLEN
Publisher: CENGAGE L
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Chapter 19, Problem 1RE
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Yuri Co. operates a chain of gift shops. The company maintains a defined contribution pension plan for its employees. The plan requires quarterly installments
to be paid to the funding agent, Whims Funds, by the fifteenth of the month following the end of each quarter. Assume that the pension cost is $203,700 for
the quarter ended December 31.
a. Journalize the entry to record the accrued pension liability on December 31.
Dec. 31
Journalize the entry to record the accrued pension liability payment to the funding agent on January 15.
Jan. 15
b. The pension plan where a company pays the employee a fixed annual amount based on a formula is a
A company's pension plan fund had a balance of $500,000 on January 1, 2019 and $650,000 on December 31, 2019.
There were deposits of $50,000 from members' contributions on each of March 1, 2019 and August 1, 2019.
There were withdrawals due to retirements of $20,000 at the end of June and $25,000 at the end of November.
Calculate the approximate dollar-weighted rate of return for the year.
You can count partial parts of the year in months. (Answer to 4 decimal places/a percent to 2 decimal places.)
Lawrence Company has a defined benefit pension plan. On December 31 of the current year (the end of the fiscal year), the actuary's report to the company contained the following information: Ending PBO, $115,000; benefits paid to retirees, $15,000; interest cost, $9,000. The discount rate applied to be the actuary was 9%.
What was the service cost for the year?
Chapter 19 Solutions
INTERM.ACCT.:REPORTING...-CENGAGENOWV2
Ch. 19 - Prob. 1GICh. 19 - Prob. 2GICh. 19 - Prob. 3GICh. 19 - Prob. 4GICh. 19 - Prob. 5GICh. 19 - Prob. 6GICh. 19 - Prob. 7GICh. 19 - Prob. 8GICh. 19 - Prob. 9GICh. 19 - Prob. 10GI
Ch. 19 - Prob. 11GICh. 19 - Prob. 12GICh. 19 - Prob. 13GICh. 19 - Prob. 14GICh. 19 - Prob. 15GICh. 19 - Prob. 16GICh. 19 - Prob. 17GICh. 19 - Prob. 18GICh. 19 - Prob. 19GICh. 19 - Prob. 20GICh. 19 - Prob. 21GICh. 19 - Prob. 22GICh. 19 - Prob. 23GICh. 19 - The actuarial present value of all the benefits...Ch. 19 - Prob. 2MCCh. 19 - Prob. 3MCCh. 19 - Prob. 4MCCh. 19 - Prob. 5MCCh. 19 - Prob. 6MCCh. 19 - Which of the following is not a component of...Ch. 19 - Prob. 8MCCh. 19 - Prob. 9MCCh. 19 - Prob. 10MCCh. 19 - Prob. 1RECh. 19 - Prob. 2RECh. 19 - Pinecone Company has plan assets of 500,000 at the...Ch. 19 - Prob. 4RECh. 19 - Prob. 5RECh. 19 - Prob. 6RECh. 19 - Prob. 7RECh. 19 - Prob. 8RECh. 19 - Given the following information for Tyler Companys...Ch. 19 - At the beginning of Year 1, Cactus Company has...Ch. 19 - Prob. 11RECh. 19 - Prob. 1ECh. 19 - Prob. 2ECh. 19 - Prob. 3ECh. 19 - Prob. 4ECh. 19 - Prob. 5ECh. 19 - Prob. 6ECh. 19 - Prob. 7ECh. 19 - Prob. 8ECh. 19 - Prob. 9ECh. 19 - Prob. 10ECh. 19 - Prob. 11ECh. 19 - Prob. 12ECh. 19 - Prob. 13ECh. 19 - Refer to the information provided in E19-13....Ch. 19 - Prob. 15ECh. 19 - Prob. 16ECh. 19 - Prob. 1PCh. 19 - Prob. 2PCh. 19 - Prob. 3PCh. 19 - Prob. 4PCh. 19 - Prob. 5PCh. 19 - Prob. 6PCh. 19 - Prob. 7PCh. 19 - Prob. 8PCh. 19 - Prob. 9PCh. 19 - Prob. 10PCh. 19 - Prob. 11PCh. 19 - Prob. 12PCh. 19 - Prob. 1CCh. 19 - Prob. 2CCh. 19 - Prob. 3CCh. 19 - Prob. 4CCh. 19 - Prob. 5CCh. 19 - Prob. 6CCh. 19 - Prob. 7CCh. 19 - Prob. 9C
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- Yuri Co. operates a chain of gift shops. The company maintains a defined contribution pension plan for its employees. The plan requires quarterly installments to be paid to the funding agent, Whims Funds, by the fifteenth of the month following the end of each quarter. Assume that the pension cost is $143,200 for the quarter ended December 31. Question Content Area a. Journalize the entry to record the accrued pension liability on December 31. If an amount box does not require an entry, leave it blank. Dec. 31 - Select - - Select - - Select - - Select - Question Content Area Journalize the entry to record the accrued pension liability payment to the funding agent on January 15. If an amount box does not require an entry, leave it blank. Jan. 15 - Select - - Select - - Select - - Select - Question Content Area b. The pension plan where a company pays the employee a fixed annual amount based on a formula is aarrow_forwardDec. 14: Journalized the payment of the September 15 note at maturity. Description Debit Credit Dec. 31: The pension cost for the year was $190,400, of which $139,700 was paid to the pension plan trustee. Description Debit Creditarrow_forward$1,000,000 500,000 1,840,000 250,000 120,000 10% Service cost Actual return on plan assets Annual contribution to the plan Amortization of prior service cost Benefits paid to retirees Settlement rate Expected rate of return on plån assets 8% Balances at 12/31/2020 are: Prior Service Cost Projected Benefit Obligation Plan Assets 1,250,000 Dr 8,000,000 Cr 5,500,000 Drarrow_forward
- Based upon this information, how would I make the following journal entries? Record annual pension expense. Record the change in plan assets. Record the change in the PBO. Record the cash contribution to plan assets. Record the retiree benefits paid.arrow_forwardYuri Co. operates a chain of gift shops. The company maintains a defined contribution pension plan for its employees. The plan requires quarterly installments to be paid to the funding agent, Whims Funds, by the fifteenth of the month following the end of each quarter. Assume that the pension cost is $400,000 for the quarter ended December 31. Required: A. Journalize the entries to record the accrued pension liability on December 31 and the payment to the funding agent on January 15. Refer to the Chart of Accounts for exact wording of account titles. B. How does a defined contribution plan differ from a defined benefit plan?arrow_forwardNaomi Company has 200 employees who are expected to receive benefits under the company's defined benefit pension plan. The average number of service years per employee is 10 years. The actuary for the company's pension plan calculated the following net gains and losses: For the year ended December 31 (Gain) or Loss 2019 2020 2021 ($350,000) 470,000 (750,000) Prior to 2019, there was no unrecognized net gain or loss. Information about the company's projected benefit obligation and market-related asset values follows: As of January 1 2019 Projected benefit obligation $2,300,000 2020 $2,450,000 2021 $2,840,000 Market-related asset values 2,150,000 2,520,000 2,600,000 Required: Based on the above information, prepare a schedule which reflects the amount of unrecognized net gain or loss to be amortized by the company as a component of pension expense for the years 2019, 2020, and 2021, using the corridor approach.arrow_forward
- Bramble Company has five employees participating in its defined benefit pension plan. Expected years of future service for these employees at the beginning of 2020 are as follows. Employee Future Years of Service Jim Paul Nancy Dave Kathy On January 1, 2020, the company amended its pension plan, increasing its projected benefit obligation by $86,400. Compute the amount of prior service cost amortization for the years 2020 through 2025 using the years-of-service method. setting up appropriate schedules. Annual Amortization Year 2020 2021 2022 2023 2024 2025 S 100 eTextbook and Media: Save for Later Attempts: 0 of 3 used Submit Answerarrow_forwardYuri Co. operates a chain of gift shops. The company maintains a defined contribution pension plan for its employees. The plan requires quarterly installments to be paid to the funding agent, Whims Funds, by the fifteenth of the month following the end of each quarter. Assume that the pension cost is $365,000 for the quarter ended December 31.a. Journalize the entries to record the accrued pension liability on December 31 and the payment to the funding agent on January 15.b. How does a defined contribution plan differ from a defined benefit plan?arrow_forwardThe Pension Expense in a pension plan for the year were recorded at $856,800. In addition, an amount of $161,400 had been debited to the Other Comprehensive Income account to record all actuarial losses for the year. In addition, the company had contributed a cash amount of $350,000 to the Plan Assets. What would have been the amount recorded as Pension expenses for 2019 if the company were reporting under ASPE? Select one: a. $856,800. b. $757,200. c. $161,400. d. $350,000. e. None of the above.arrow_forward
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