Connect Access Card for Financial Accounting
9th Edition
ISBN: 9781259738678
Author: Robert Libby, Patricia Libby, Frank Hodge Ch
Publisher: McGraw-Hill Education
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Chapter S, Problem 6P
To determine
Compute the amount of defined contribution pension expense recognized by Trader J for 2013.
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The Maggie Company has a defined benefit pension plan for its employees. The following information pertains to the pension plan as of December 31, 2015:
Projected benefit obligation, January 1, 2015
$1,650,000
Service cost, 2015
850,000
Interest cost, 2015
125,000
Payments to retired employees
95,000
Actual return on plan assets
109,600
The amount of the December 31, 2015, projected benefit obligation is
$2,530,000
$2,270,400
$2,420,400
$2,515,400
How much is the annual retirement benefit expense for the year ended December 31, 2021?
a. ₱ 312,902
b. ₱ 1,390,675
c. ₱ 104,301
d. ₱ 417,203
How do I go about calculating pension payouts to determine a company's financial obligation? Additional info is below:
Postretirement BenefitsPeyton Approved has revised its postretirement plan. It will now provide health insurance to retired employees. Management has requested that you report the short- and long-term financial implications of this. The company is currently employing 60, and actuaries estimate that the company has a pension liability of $107,041.70. The estimated cost of retired employees’ health insurance is $43,718.91. Prepare adjusting entries for the pension liability and the health insurance liability
Chapter S Solutions
Connect Access Card for Financial Accounting
Ch. S - Defining a Lessor Which of the following best...Ch. S - Prob. 2MCQCh. S - Prob. 3MCQCh. S - Prob. 4MCQCh. S - Prob. 5MCQCh. S - Prob. 6MCQCh. S - Prob. 1MECh. S - Prob. 2MECh. S - Prob. 3MECh. S - Prob. 4ME
Ch. S - Prob. 1ECh. S - Prob. 2ECh. S - Prob. 3ECh. S - Prob. 4ECh. S - Calculating a Deferred Tax Liability LOS-5 On...Ch. S - Prob. 6ECh. S - Prob. 7ECh. S - Prob. 8ECh. S - Prob. 9ECh. S - Prob. 10ECh. S - Converting Operating Leases to Capital Leases...Ch. S - Converting Operating Leases to Capital Leases...Ch. S - Computing Effective Tax Rates LOS-4 Below is...Ch. S - Prob. 4PCh. S - Prob. 5PCh. S - Prob. 6PCh. S - Analyzing Starbuckss Lease Disclosures The...Ch. S - Analyzing Disneys Income Tax Disclosures The...
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- An employee and employer cost-share pension plan contributions and health insurance premium payments. If the employee covers 35% of the pension plan contribution and 25% of the health insurance premium, what would be the employees total benefits responsibility if the total pension contribution was $900, and the health insurance premium was $375? Include the journal entry representing the payroll benefits accumulation for the employer in the month of February.arrow_forward1. Differentiate between a defined contribution pension plan and defined benefit pension plan. Explain how the employer’s obligation differs between the two types of plans. 2. What is meant by past service cost? When is past service cost recognized as pension expense? 3. How does an “asset gain or loss” develop in pension accounting? 4. At January 1, 2015, Uddin Company had plan assets of $250,000 and a defined benefit obligation of the same amount. During 2015, service cost was $27,500 ,the discount rate was 10%, actual return on plan assets was $25,000, contributions were $20,000 and benefits paid were $17,500. Prepare a pension worksheet for Uddin Company for 2015.arrow_forwardJoshua Company has a define contribution plan that covers its existing employees. The terms of the plan require Joshua to contribute 5% of the annual employee salaries to the retirement plan each year. The payroll shows the annual salaries and contributions made as follows: Year Gross Payroll Contributions made 2021 P10,000,000 P670,000 2022 12,200,000 430,000 How much is the benefit expense in 2022 profit or loss and the amount of prepaid (accrued) banefit as of December 31.2022? O P430.000 and P180,000 accrued O P610,000 and P180,000 accrued O P430,000 and P10,000 prepaid O P610.000 and P10.000 prepaidarrow_forward
- Joshua Company has a define contribution plan that covers its existing employees. The terms of the plan require Joshua to contribute 5% of the annual employee salaries to the retirement plan each year. The payroll shows the annual salaries and contributions made as follows: Year Gross Payroll Contributions made 2021 P670,000 670,000 2022 12.200,000 430,000 How much is the benefit expense in 2022 profit or loss and the amount of prepaid (accrued) benefit as of December 31, 2022? O P610,000 and P10,000 prepaid O P610,000 and P180,000 accrued OP430,000 and P10.000 prepaid OP430,000 and P180,000 accruedarrow_forward(Pension Expense, Journal Entries) The following information is available for the pension plan of Radcliffe Company for the year 2017. Check the below image for information. Instructions(a) Compute pension expense for the year 2017.(b) Prepare the journal entry to record pension expense and the employer’s contribution to the pension plan in 2017.arrow_forwardIt's urgently asaparrow_forward
- TKE Corporation established a defined benefit pension plan in 2016. TKE has provided the following information for the year ended December 31, 20X1: Service cost $ 90,000 Interest cost $ 120,000 Actual return on plan assets $ 70,000 Expected return on plan assets $ 80,000 Amortization of prior service costs $ 30,000 If the company contributes $130,000 cash to the pension plan trustee, which one of the following journal entries properly records the payment? Multiple Choice DR Pension expense 90,000 DR Pension asset (liability) 40,000 CR Cash 130,000 DR Pension expense 120,000 DR Pension asset 10,000 CR Cash 130,000 DR Pension expense 130,000 CR Cash 130,000 DR Pension expense 160,000 CR Cash 130,000 CR Pension asset (liability) 30,000arrow_forwardSarasota Importers provides the following pension plan information. Fair value of pension plan assets, January 1, 2020 $2,219,000 Fair value of pension plan assets, December 31, 2020 2,547,000 Contributions to the plan in 2020 287,000 Benefits paid retirees in 2020 361,000 From the data above, compute the actual return on the plan assets for 2020. Actual return on plan assets for 2020arrow_forwardVacation Pay and Pension Benefits Putnam Company provides its employees vacation benefits and a defined contribution pension plan. Employees earned vacation pay of $24,000 for the period. The pension formula calculated a pension cost of $257,000. Only $15,420 was contributed to the pension plan administrator. (a) Provide the journal entry for the vacation pay. If an amount box does not require an entry, leave it blank. (b) Provide the journal entry for the pension benefit. If an amount box does not require an entry, leave it blank.arrow_forward
- Preparing a Pension Worksheet Levine Co. sponsored a defined benefit plan, which included January 1 balances of $5,000 and $4,800 in Plan Assets and Projected Benefit Obligation, respectively. During the year, the company incurred $1,000 in service cost, made plan contributions of $210, and paid benefits to retirees for $150. The discount rate is 9% and the expected and actual rate of return on plan assets is 10%. Prepare a pension worksheet for the year. Note: Use a negative sign for credits to accounts. Pension Worksheet Reported Net in Financial Statements Balance Sheet Income Statement Cash Outflow Pension Expense Plan Assets PBO Net Pension Asset/Liability Balance, January 1 $ $ $ Service cost $ $ Interest cost Expected return Contributions to fund Benefit payments Balance, December 31 $ $ $ $ Checkarrow_forwardGG Inc. sponsors a defined-benefit pension plan. The following data relates to the operation of the plan for the year 2020. Service cost P200,000 Contributions to the plan 220,000 Actual return on plan assets 180,000 Defined benefit obligation (beginning of year) 2,400,000 Fair value of plan assets (beginning of year) 1,600,000 The discount rate was 10%. The amount of pension expense reported for 2020 is?arrow_forwardMemanarrow_forward
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