Cengagenowv2, 1 Term Printed Access Card For Wahlen/jones/pagach’s Intermediate Accounting: Reporting And Analysis, 2017 Update, 2nd
2nd Edition
ISBN: 9781337912259
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 19, Problem 6P
To determine
Prepare a schedule to compute the net gain or loss included in the pension expense of Company K for 2016, 2017 and 2018, and indicate whether the gain or loss is added to or subtracted from the pension expense.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
On December 31, 2018, an entity paid $300,000 contribution to a defined contribution plan. Of this amount, P250,000 is in part exchange for services performed by the employees in December 2017, and the balance of P50,000 is in respect of services to be performed in 2018. What is the journal entry of the defined contribution plan made on December 2017?
Compute the employee benefit expense for the current year and the net remeasurement gain for the current year.
Some years ago, Junior Ltd established a defined benefit pension plan for its employees. The company has since introduced a defined contribution plan, which all new staff join when commencing employment with Junior Ltd. Although the defined benefit plan is now closed to new recruits, the fund continues to provide for employees who have been with the company for a long time. The following actuarial report has been received for the defined benefit plan:
Requirements:a) Determine the surplus or deficit of Junior Ltd.’s defined benefit plan at 31 December 2018.b) Determine the net defined benefit asset or liability that should be recognised by Maple Ltd at 31 December 2018.c) Calculate the net interest and the return on plan assets for 2018.
Chapter 19 Solutions
Cengagenowv2, 1 Term Printed Access Card For Wahlen/jones/pagach’s Intermediate Accounting: Reporting And Analysis, 2017 Update, 2nd
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 - Prob. 14ECh. 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. 8CCh. 19 - Prob. 10C
Knowledge Booster
Similar questions
- In its defined contribution plan, Force Company reported a P100,000 balance on its Prepaid Benefit Cost on January 1, 2020. It contributed a total of P1,420,000 during the year. There was a P120,000 balance on the Accrued Benefit Cost as of yearend 2020. How much is the 2020 Employee Benefit Expense?arrow_forwardLucky 11 Corporation established a defined benefit plan for its employees and provided the following information: Fair value of plan assets as ofJanuary 1 was P5,500,000 and December 31 P6,300,000, Projected benefit obligation as of January 1 was P6,000,000 and December 31 P6,800,000.Current and past service cost were P700,000 and P550,000, respectively. Contributions to the plan during the year was P900,000 while benefitspaid during the year was P450,000. The expected rate of return on plan assets was 10%, the weighted average rate of return for plan assets was9.5%, the discount rate for plan assets was 8%. 1. What is the employee benefit expense for the current year?2. How much is the actuarial gain/loss on return on plan assets?3. What is the prepaid/accrued balance of the pension at yearend?4. How much is the defined benefit cost?arrow_forwardPlease solve using good accounting form to better understand the problem. Thank you!arrow_forward
- The following data pertains to Integrity Company that adopts a defined benefit plan for its employees: Defined benefit obligation, January 1, 2021 - P6,250,000 Plan assets at fair value, January 1, 2021 - P5,800,000 Based on the reference to market yields at the end of the year, the discount rate is determined at 10%. During the year 2021, current years’ service cost totaled P940,000 while contributions made to the fund amounted to P1,245,000 and benefits paid to retired employees totaled P1,450,000. Because the company is not making impressive income in the past years, benefits were reduced as a result of an amendment in the plan. The past service cost, which is a negative figure, amounted to P220,000. After remeasurement at the end of the year, an actuarial gain on the defined benefit obligation was computed at P102,000. Actual return on plan assets amounted to P600,000. How much is the retirement benefit cost taken to profit or loss and to other comprehensive income, respectively?…arrow_forwardLewis, a public limited company, has a defined benefit plan for its employees. The present value of the future benefit obligations at 1 January 20X7 was $1,120 million and the fair value of the plan assets was $1,040 million. Further data concerning the year ended 31 December 20X7 is as follows: $m Current service cost 76 Benefits paid to former employees Contributions paid to plan 88 94 Present value of benefit obligations at 31 December Fair value of plan assets at 31 December 1,222 1,132 As valued by professional actuaries Interest cost (gross yield on 'blue chip' corporate bonds): 5% On 1 January 20X7 the plan was amended to provide additional benefits with effect from that date. The present value of the additional benefits at 1 January 20X7 was calculated by actuaries at $40 million. Required Prepare the required notes to the statement of profit or loss and other comprehensive income and statement of financial position for the year ended 31 December 20X7. Assume the contributions…arrow_forwardOn December 31, 2020, an entity paid P200,000 contribution to a defined contribution plan. Of this amount, P150,000 is in part exchange for services performed by the employees in December 2019, and the balance of P50,000 is in respect of services to be performed in 2020.The contribution to the defined contribution plan is recorded on December 31, 2019 with a: a. Some other answer. b. Debit to :Employee benefit expense for P150,000 c. Debit to Prepaid benefit expense P50,000 d. Credit to Cash for P100,000arrow_forward
- Integrity Company was organized way back in 2000. It was in 2016 that the company adopted a defined benefit plan for its employees. After five years of profitable operations, an amendment in its defined benefit plan was effected on January 1, 2021 resulting to increased employee benefits. The records of the company show the following balances on January 1, 2021: Defined benefit obligation - P7,600,000 Plan assets at fair value - P6,200,000 For the year 2021, after considering the actuarial assumptions about demographic variables and financial variables, the following were reported: Current service cost - P560,000 Contributions made to the fund - P1,750,000 Past service cost resulting from the plan amendment - P920,000 Benefits paid - P1,350,000 Discount rate - P8% Actual return on plan assets - P602,000 Actuarial loss on remeasurement of defined benefit obligation at year end - P102,000 How much is the retirement benefit expense taken to profit or loss for the year ended December…arrow_forwardIntegrity Company was organized way back in 2000. It was in 2016 that the company adopted a defined benefit plan for its employees. After five years of profitable operations, an amendment in its defined benefit plan was effected on January 1, 2021 resulting to increased employee benefits. The records of the company show the following balances on January 1, 2021: Defined benefit obligation - P7,600,000 Plan assets at fair value - P6,200,000 For the year 2021, after considering the actuarial assumptions about demographic variables and financial variables, the following were reported: Current service cost - P560,000 Contributions made to the fund - P1,750,000 Past service cost resulting from the plan amendment - P920,000 Benefits paid - P1,350,000 Discount rate - P8% Actual return on plan assets - P602,000 Actuarial loss on remeasurement of defined benefit obligation at year end - P102,000 How much is the retirement benefit expense taken to profit or loss for the year ended December…arrow_forwardAt the beginning of current year, The Company reported the fair value of plan assets at $7,800,000 and projected benefit obligation at $10,400,000. During the year, the entity made a lump sump payment to certain plan participants in exchange for their rights to receive specific post employment benefits. The lump sum payment was $1,040,000 and the present value of the defined benefit obligation settled was $1,300,000. During the year, the entity reported current service cost $1,170,000, actual return on plan assets $1,040,000, contribution to the plan $910,000 and discount rate 12%. What is the employee benefit expense?arrow_forward
- Linda Berstler Company sponsors a defined benefit pension plan. The corporation’s actuary provides the following information about the plan. Check the below image for information. Instructions(a) Compute the actual return on the plan assets in 2017.(b) Compute the amount of other comprehensive income (G/L) as of December 31, 2017. (Assume the January 1, 2017, balance was zero.)arrow_forwardThe following data pertains to Integrity Company that adopts a defined benefit plan for its employees: ⚫ Defined benefit obligation, January 1, 2021 - P4,800,000 • Plan assets at fair value, January 1, 2021 - P6,250,000 For the year 2021: ⚫ Current service cost - P560,000 • Contributions made to the fund - P750,000 • Benefits paid to employees - P1,350,000 • Discount rate - 10% • Defined benefit obligation after remeasurement on December 31, 2021 P4,550,000 • Actuarial loss on plan assets - P31,000 How much is the Defined Benefit Liability/Asset at December 31, 2021? Choices: 1,206,000 Liability 1,206,000 Assets 1,694,000 Liability 1,694,000 Asset Show your computationarrow_forwardABC Company operates a defined benefit plan and recognizes actuarial gains and losses in profit or loss under the corridor approach. At January 1, 2020, the plan assets were P8,000,000, the defined benefit obligation was P9,000,000 and the unrecognized actuarial losses were P1,200,000. During the year ended December 31, 2020, actuarial gains of P150,000 arose. The average remaining working period of participating employees was 20 years at both January 1 and December 31, 2020. What is the amount of cumulative unrecognized actuarial losses on December 31, 2020? (Round answer to whole number)arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning