A6 Assume that the company applies IFRS and has a significant plansurplus and current period remeasurement gain prior to thefollowing events in the current yearSunland Corporation is aprivate company with a defined benefit pension plan. Thefollowing information is available for Sunland for 2023: Openingbalance, DBO Opening balance, plan assets Service cost Employercontributions paid evenly through 2023 Applicable interest ordiscount rate Actual return on plan assets Actuarial loss due tochange in actuarial assumptions $188,000 179,000 52,000 69,000 10 % 22,500 12,500 Assumingthat Sunland follows IFRS, determine the 2023 effect of thepension plan on defined benefit expense and the company'sshareholders' equity. total defined benefit expense and a relatedin the net income and retained earnings by $ and Sunland Corporation is a private company with a defined benefit pension plan. The following information is available for Sunland for2023:Opening balance, DBOOpening balance, plan assetsService costEmployer contributions paid evenly through 2023Applicable interest or discount rateActual return on plan assetsActuarial loss due to change in actuarial assumptions$188,000179,000eTextbook and Media52,00069,00010%22,50012,500Assuming that Sunland follows IFRS, determine the 2023 effect of the pension plan on defined benefit expense and the company'sshareholders' equity.total defined benefit expense and a related decrease in the net income and retained earnings by $58400and

Pension is defined as the amount collected from the employee during his term of employment. The same…

Assume that the company applies IFRS and has a significant plan surplus and current period remeasurement gain prior to the following events in the current yearSunland Corporation is a private company with a defined benefit pension plan. The following information is available for Sunland for 2023: Opening palance, DBO Opening balance, plan assets Service cost Employer contributions paid evenly through 2023 Applicable interest or discount rate Actual return on plan assets Actuarial loss due to change in actuarial assumptions $ 188,000 179,000 52,000 69,000 10 % 22, 500 12,500 Assuming that Sunland follows IFRS, determine the 2023 effect of the pension plan on defined benefit expense and the company's shareholders' equity. total defined benefit expense and a related n the net income and retained earnings by S and

Assume that the company applies IFRS and has a significant plan surplus and current period remeasurement gain prior to the following events in the current yearSunland Corporation is a private company with a defined benefit pension plan. The following information is available for Sunland for 2023: Opening palance, DBO Opening balance, plan assets Service cost Employer contributions paid evenly through 2023 Applicable interest or discount rate Actual return on plan assets Actuarial loss due to change in actuarial assumptions $ 188,000 179,000 52,000 69,000 10 % 22, 500 12,500 Assuming that Sunland follows IFRS, determine the 2023 effect of the pension plan on defined benefit expense and the company's shareholders' equity. total defined benefit expense and a related n the net income and retained earnings by S and

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 7E

See similar textbooks

Similar questions

Presented below is pension information related to Sheridan Company as of December 31, 2021: Accumulated benefit obligation Projected benefit obligation Plan assets (at fair value) Accumulated OCI (G/L) $ 3264000 O Pension Asset of $293000. O Pension Liability of $593000. Pension Liability of $293000. Pension Asset of $886000. 3857000 4150000 113000 The amount to be reported as Pension Asset / Liability as of December 31, 2021 is
Kingbird Company provides the following selected information related to its defined benefit pension plan for 2020. Pension asset/liability (January 1) Accumulated benefit obligation (December 31) Actual and expected return on plan assets Contributions (funding) in 2020 Fair value of plan assets (December 31) Settlement rate Projected benefit obligation (January 1) Service cost (a) Your answer is correct. Compute pension expense. Pension expense for 2020 $ Account Titles and Explanation Pension Expense Pension Asset/Liability $27,200 Cr. 403,300 11,000 150,600 794,200 Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2020. Preparation of a pension worksheet is not required. Benefits paid in 2020 were $37,100. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Cash 10 % 696,900 79,420 138110…
Sandhill Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2025, the following balances relate to this plan. Plan assets Projected benefit obligation Pension asset/lability Accumulated OCI (PSC) (a) As a result of the operation of the plan during 2025, the following additional data are provided by the actuary. Service cost Settlement rate, 9% Actual return on plan assets Amortization of prior service cost Expected returson plan assets Unexpected loss from change in projected benefit obligation due to change in actuarial predictions Contributions Benentspaid retirees items Balance, Jan 1, 2025 Service cost $496,400 610,800 interest cost 114400 Actual return 98,000 Dr. Unexpected gain Using the data above, compute pension expense for Sandhill. for the year 2025 by preparing a pension worksheet. (Enter all amounts as positive.) $90.900 54,700 18.300 51.600 76.600 103.700 85,200 Annual Pension Expense C Cath SUPPORT
A company that sponsors a defined benefit plan records an entry to debit OCI-Pension Gain/Loss for $5,000 and credit Plan Assets. The company uses the corridor approach to amortize Accumulated OCI-Pension Gain/Loss. This entry indicates that Select one: O a. The expected return on plan assets exceeded actual return on plan assets. O b. The actual return on plan assets exceeded the expected return on plan assets. O c. The beginning balance in Accumulated OCI-Pension Gain/Loss exceeded the corridor. O d. The beginning balance in Accumulated OCI-Pension Gain/Loss did not exceed the corridor. e. a and c f. b and d OO
The following information relates to the pension plan for the employees of Cullumber Co.: Accum. benefit obligation Projected benefit obligation Fair value of plan assets AOCI - net (gain) or loss Settlement rate (for year) Expected rate of return (for year) O $665200 gain. O $282200 loss. 1/1/20 $110600 gain. $272400 gain. $8140000 8665000 7825000 -0- $ 12/31/20 8560000 9358000 9820000 (1402000 ) 11% 8% 12/31/21 $ 11500000 12907000 10954000 (1570000 ) 11% Cullumber estimates that the average remaining service life is 16 years. Cullumber's contribution was $1213000 in 2021 and benefits paid were $877000. The unexpected gain or loss on plan assets in 2021 is 7%
1) compute the actual return on plan asset 2) determine the componets of pension expense that the company would recognize in 2025 3) compute the amount of the 2025 increase/decrease in gains or losses 4) prepare the journal entry to record the pension expense and the company's funding of the pension plan in 2025
Under the defined-benefit pension plan for a company, the expected return on plan assets is $124,000 and actual return on plan assets is $269,000 in 2021. To record the unexpected gain/loss due to asset returns, the company will (enter 1, 2, 3, or 4 that represents the correct answer): Debit Other Comprehensive Income-Gain/Loss Credit Pension Expense Debit Pension Expense Debit Plan Assets
The following information relates to the pension plan for the employees of Blossom Company: Accum. benefit obligation Projected benefit obligation Fair value of plan assets AOCI - net (gain) or loss Settlement rate (for year) Expected rate of return (for year) 1/1/25 $7940000 8465000 7625000 O $26250. O $17456. O $20238. O $14188. 0 12/31/25 $8360000 9158000 9620000 (1382000) 11% 8% 12/31/26 $11300000 12707000 10754000 (1550000) 11% 7% Blossom estimates that the average remaining service life is 16 years. Blossom's contribution was $1323000 in 2026 and benefits paid were $987000. The amount of AOCI (net gain) amortized in 2026 is
Determine the missing amounts in the 2020 pension worksheet, indicating whether the amounts are debits or credits. (Enter all amounts as positive.) Pension Worksheet—Riverbed Inc. General Journal Entries Memo Record Annual PensionExpense Cash OCI—PriorService Cost OCI—Gain/Loss Pension Asset/Liability Projected BenefitObligation PlanAssets Balance, Jan. 1, 2020 $1,298 Cr. $3,304 $2,006 Service cost $ 590 Interest cost 330…
Crane Syrups Company provides the following pension plan information: Fair value of pension plan assets, January 1, 2025 Fair value of pension plan assets, December 31, 2025 Contributions to the plan in 2025 Benefits paid retirees in 2025 $1,215,000 1,424,000 157,000 204,000 From the data above, compute the actual return on the plan assets for 2025. Actual return on plan assets for 2025 $
The following information relates to the defined retirement benefit plan of Integrity Company as of December 31, 2021: Net actuarial gain due to remeasurement of benefit obligation and plan assets taken to OCI - P123,000 Prior service cost due to amendment of plan included in retirement benefit expense - P443,000 Fair value of plan assets - P2,557,000 Accrued benefit obligation - P2,800,000 What amount should be shown in the statement of financial position at December 31, 2021 as Prepaid or Accrued Retirement Benefit Cost? a. P243,000 accrued b. P563,000 accrued c. P323,000 prepaid d. P77,000 prepaid
rane importers provides the following pension plan Fair value of pension plan assets, January 1, 2025 Fair value of pension plan assets, December 31, 2025 Contributions to the plan in 2025 Benefits paid retirees in 2025 Tormation. Actual return on plan assets for 2025 $ $2,575,000 2,914,000 299,000 366,000 From the data above, compute the actual return on the plan assets for 2025.