INTERM.ACCT.:REPORTING...-CENGAGENOWV2
3rd Edition
ISBN: 9781337909358
Author: WAHLEN
Publisher: CENGAGE L
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Chapter 19, Problem 5MC
To determine
Calculate the amount of accrued pension cost on December 31, 2019 and 2020.
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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.
The accounting staff of Wildhorse Inc. has prepared the following pension worksheet. Unfortunately, several entries in the worksheet are not readable. The company has asked your assistance in completing the worksheet and completing the accounting tasks related to the pension plan for 2021.
(a)Determine the missing amounts in the 2021 pension worksheet, indicating whether the amounts are debits or credits.
Annual Pension Expense
debit/
credit
Cash
debit/
credit
OCI - Prior Service Cost
debit/
credit
OCI - Gain/Loss
debit/
credit
pension asset/liability
debit/credit
Projected benefit obligation
debit/credit
Plan Assets
debit/credit
Balance Jan 1, 2021
1,190
Cr.
4,120
2,930
service cost
$
570
interest cost
$
326
actual return
$
422
unexpected gain
157
$
amortization of psc
$
61
contributions
1,190
1,190…
Required:
1-a. Determine Douglas-Roberts's pension expense for 2021
1-b, 2. to 4. Prepare the appropriate journal entries to record the pension expense, to record any 2021 gains and losses, to record the
cash contribution to plan assets and to record retiree benefits
Complete this question by entering your answers in the tabs below.
Req 1A
Req 18 and 2
to 4
Prepare the appropriate journal entries to record the pension expense, to record any 2021 gains and losses, to record the cash
contribution to plan assets and to record retiree benefits. (If no entry is required for a transaction/event, select "No journal entry
required" in the first account field. Enter your answers in millions (Le 10,000,000 should be entered as 10).)
View transaction list
Journal entry worksheet
1
2
3
1
Record annual pension expense
Note: Exer debts before credits
4
5
Genet Jumal
Det
Credit
View general journal
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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- $1,000,000 500,000 1,840,000 250,000 120,000 10% Service cost Actual return on plan assets Annual contribution to the plan Amortization of prior service cost Benefits paid to retirees Settlement rate Expected rate of return on plån assets 8% Balances at 12/31/2020 are: Prior Service Cost Projected Benefit Obligation Plan Assets 1,250,000 Dr 8,000,000 Cr 5,500,000 Drarrow_forwardThe following information relates to Schmidt Sausage Company's defined benefit pension plan during the current reporting year: Plan assets beginning of the year Expected return on plan assets Actual return on plan assets Cash contributions Amortization of net loss Retiree benefits ($ in millions) Pension plan assets of the year $ 580 58 49 78 9 10 Required: Determine the amount of pension plan assets at fair value on December 31. Note: Enter your answers in millions.arrow_forwardInstructions Determine the missing amounts in the 2020 pension worksheet, indicating whether the amounts are debits or credits. Prepare the journal entry to record 2020 pension expense for Usher Inc. The accounting staff has heard of a pension accounting procedure called “corridor amortization.” Is Usher required to record any amounts for corridor amortization in (1) 2020? In (2) 2021? Explain.arrow_forward
- Required: Determine Scholz's pension expense for 2019 and prepare the appropriate journal entries to record the expense as well as the cash contribution to plan assets and payment of benefits to retirees. Determine the new gains and/or losses in 2019 and prepare the appropriate journal entry(s) to record them. Prepare a pension spreadsheet to assist you in determining end of 2019 balances in the PBO, plan assets, prior service cost—AOCI, the net loss—AOCI, and the pension liability. Required: 4. Determine Scholz's pension expense for 2020 and prepare the appropriate journal entries to record the expense, the cash funding of plan assets, and payment of benefits to retirees. 5. Determine the new gains and/or losses in 2020 and prepare the appropriate journal entry(s) to record them. 6. Prepare a pension spreadsheet to assist you in determining end of 2020 balances in the PBO, plan assets, prior service cost—AOCI, the net loss—AOCI, and the pension liability.arrow_forwardAns in TXT formarrow_forwardA pension plan paid out benefits amounting to $343,200 during the year to retired plan members. The entry reflected in a pension fund work sheet should show Select one: a. DEBIT-Plan Assets; CREDIT-Cash. b. DEBIT-Plan Expenses; CREDIT-Cash. c. DEBIT-Plan Expenses; CREDIT-Plan Assets. d. DEBIT-Defined Benefit Obligation; CREDIT-Cash. e. None of the above.arrow_forward
- Actuary and trustee reports indicate the following changes in the PBO and plan assets of Douglas-Roberts Industries during 2021: Required:1. Determine Douglas-Roberts's pension expense for 2021.2. Prepare the appropriate journal entries to record the pension expense, to record any 2021 gains and losses, to record the cash contribution to plan assets and to record retiree benefits. 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_forwardYou have the following information related to Chalmers Corporation's pension plan: Use the PV of 1, PVAD of 1, and PVOA of 1 tables where appropriate. (Use the appropriate factor(s) from the tables provided.) a. Defined benefit, noncontributory pension plan. b. Plan initiation, January 1, 20X3 (no credit given for prior service). c. Retirement benefits paid at year-end with the first payment one year after retirement. d. Assumed discount rate of 7%. e. Assumed expected rate of return on plan assets of 9%. f. Annual retirement benefit equals years of credited service × 0.02 x highest salary. g. Chalmers made $1,200 contributions to the pension fund at the end of each year. h. The actual returns were $0 and $48 in 20X3 and 20X4, respectively. i. Information for Frank Bullitt, the firm's only employee, follows: January 1, 20X0 December 31, 20Y7 (15 years from plan inception) Start date Expected retirement date Expected number of payments during retirement 20 Selected actual and expected…arrow_forwardIn pension accounting, the employer's net pension liability: A. Is the amount the government intends to contribute within 30 days after yearend to the pension plan. B. Is based on actuarial valuations generally required to be performed at least every five years. C. Represents the portion of the present value of projected benefit payments to be provided through the pension plan to current active and inactive employees that is attributed to those employees' past periods of service. D. Is measured as the total pension liability less the amount of fiduciary net position held for future pension payments.arrow_forward
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