RET - Week 03 Slide Questions (W23)

Refer to the financial statements and related disclosure notes of Microsoft Corporation (www.microsoft.com).Required:1. What type of pension plan does Microsoft sponsor for its employees? Explain.2. Who bears the “risk” of factors that might reduce retirement benefits in this type of plan? Explain.3. Assuming that employee and employer contributions vest immediately, suppose a Microsoft employee contributes $1,000 to the pension plan during her first year of employment and directs investments to a bondmutual fund. If she leaves Microsoft early in her second year, after the mutual fund’s value has increased by2%, how much will she be entitled to roll over into an Individual Retirement Account (IRA)?4. How did Microsoft account for its participation in the pension plan in fiscal 2015?

Question Content Area Gage began a defined benefit pension plan on January 1, 2015. During 2015, the service cost was $450,000. Gage contributed $450,000 to the pension plan for 2015. The actuary said the projected benefit obligation at December 31, 2015 was $450,000. As of December 31, 2015, what statements can Gage make about the pension plan? I. The pension plan is fully funded. II. Gage does not need to report a liability regarding the pension plan at December 31, 2015. both I and II I II neither I nor II

Question 25 Carla Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2017. 1.   The actuarial present value of future benefits earned by employees for services rendered in 2017 amounted to $82,000. 2.   The company’s funding policy requires a contribution to the pension trustee amounting to $151,000 for 2017. 3.   As of January 1, 2017, the company had a projected benefit obligation of $1,603,000 and a debit balance of $429,000 in accumulated OCI (PSC). The fair value of pension plan assets amounted to $1,373,000 at the beginning of the year. The actual and expected return on plan assets was $63,000. The settlement rate was 5%. No gains or losses occurred in 2017 and no benefits were paid. 4.   Amortization of prior service cost was $85,800 in 2017. Amortization of net gain or loss was not required in 2017.     (c)     Indicate the amounts that would be reported on the income…

Payroll Accounting 2020 by Landin Question: Ed Myers is verifying the accuracy and amount of information contained in the employee records for his employer, Genible Industries. Which of the following items should be present in the employee information?  Social Security number. checkedJob title. checkedEmployee address. checkedBirth date, if greater than 19.

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

3 continue b...   The following information is available for the pension plan of Vaughn Company for the year 2020. Actual and expected return on plan assets   $ 14,700   Benefits paid to retirees   40,800   Contributions (funding)   81,100   Interest/discount rate   10 % Prior service cost amortization   7,600   Projected benefit obligation, January 1, 2020   458,000   Service cost   63,900 Prepare the journal entry to record pension expense and the employer’s contribution to the pension plan in 2020. (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.) Account Titles and Explanation Debit Credit enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount…

Give typing answer with explanation and conclusion QUESTION 10 To assist pensioners with more than one source of income, legislation was introduced to make provision for SARS to determine a more accurate PAYE deduction amount, using the latest data available to SARS. Which of the following statements is incorrect? a. This only applies to pensioners. b. Pensioners have to apply to SARS for the PAYE deduction rate applying to them. c. The legislation came into effect on 1 March 2021. d. All of the above. e. None of the above.

Pension Question (30 marks)Sophia Consultants Inc. has had a defined benefit pension plan since January 1, 2018.The following represents beginning balances as at January 1, 2022:Plan Asset $1,155,300; Defined Benefit Obligation $1,275,000; Net Pension Liability $119,700Additional Information is as follows for 2022:Current Service cost is $186,000 for 2022Company Funding/Contribution is $200,000 for 2022. Funding is made on December 31 of each year.Actual return on assets is $55,900 for 2022.There is an increase in obligation for $29,000 due to changes in Actuarial assumptions at Dec 31, 2022.There are payments made equal to $80,000 per year to retired employees in 2022 (payments to retireesare made at the end of the year on December 31).Past service cost of $85,900 from plan amendment dated December 31, 2022: liability is increasedbecause benefits were increased on a retroactive basis.For 2022, the assumed interest rate is 6%. Assume IFRS.Required:1. Determine Defined Benefit…

Payroll Accounting 2020 by Landin Question: Lila Rivera is a new employee for Divera Glass. Which federal forms must she complete as part of the hiring process?   Here is my answer, is it correct? SS-8 uncheckedI-9 checkedW-2 uncheckedW-4 checked

Knowledge Check 01Calder Company has a defined benefit pension plan. Pension-related data for the current calendar year are shown below:          Average remaining service period of active employees   12 years Net gain, January 1 $ 214,600   PBO, January 1   1,630,000   Plan assets, January 1   1,930,000      What is the amount of the amortization of the net loss or gain that should be included as a component of pension expense for the current year?

Q1. Your employer uses a flat benefit formula to determine retirement payments to its employees. The fund pays an annual benefit of $2,500 per year of service. Calculate your annual benefit payment for 25, 28 and 30 years of service.

c)Calculate the net interest and the return on plan assets for 2018d) Prepare a pension worksheet for the period ended December 31 2018e) Prepare the journal entries to account for the defined benefit pension plan in thebooks of Junior Ltd for the year ended December 31 2018

Please need answer for all with full working please answer all with steps computation explanation formula please answer all    Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2024. The provisions of the plan were not made retroactive to prior years. A local bank, engaged as trustee for the plan assets, expects plan assets to earn a 10% rate of return. The actual return was also 10% in 2024 and 2025.* A consulting firm, engaged as actuary, recommends 5% as the appropriate discount rate. The service cost is $160,000 for 2024 and $210,000 for 2025. Year-end funding is $170,000 for 2024 and $180,000 for 2025. No assumptions or estimates were revised during 2024. *We assume the estimated return was based on the actual return on similar investments at the inception of the plan and that, since the estimate didn't change, that also was the actual rate in 2025. Required: Calculate each of the following amounts as of both December 31, 2024, and December 31, 2025:…

a. Compute pension expense for Howard Corp. for the year 2020 by preparing a pension worksheet. Prepare the journal entries relating to pension for the year 2020. (

(Comprehensive 2-Year Worksheet) Lemke Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2017 and 2018. Check the below image for pension plan information. Instructions(a) Prepare a pension worksheet presenting both years 2017 and 2018 and accompanying computations and amortization of the loss (2018) using the corridor approach.(b) Prepare the journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31 of each year.(c) For 2018, indicate the pension amounts reported in the financial statements.

1. 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.

An employer maintains pension trust for its employees. The following information are made: Description 2018 2019 2020 Current service costs 1,500,000 1,700,000 2,000,000 Past service costs 800,000 600,000 How much is the deductible pension contributions for the year 2020?

Q)2018 FICA Rates: Social Security: 6.2% on the first $128,400 of annual wages Medicare1.45% on all wages (no limit) solve both subparts

Question 17 Swifty Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2020 in which no benefits were paid. 1.   The actuarial present value of future benefits earned by employees for services rendered in 2020 amounted to $55,500. 2.   The company’s funding policy requires a contribution to the pension trustee amounting to $144,729 for 2020. 3.   As of January 1, 2020, the company had a projected benefit obligation of $908,100, an accumulated benefit obligation of $802,100, and a debit balance of $400,100 in accumulated OCI (PSC). The fair value of pension plan assets amounted to $601,200 at the beginning of the year. The actual and expected return on plan assets was $54,100. The settlement rate was 9%. No gains or losses occurred in 2020 and no benefits were paid. 4.   Amortization of prior service cost was $50,500 in 2020. Amortization of net gain or loss was not required in 2020.   (c)…

3b.  The following information is available for the pension plan of Vaughn Company for the year 2020. Actual and expected return on plan assets   $ 14,700   Benefits paid to retirees   40,800   Contributions (funding)   81,100   Interest/discount rate   10 % Prior service cost amortization   7,600   Projected benefit obligation, January 1, 2020   458,000   Service cost   63,900   (a)   Your answer has been saved. See score details after the due date. Compute pension expense for the year 2020. Pension expense for 2020   $enter pension expense for 2017 in dollars              Attempts: 1 of 1 used       (b)     Prepare the journal entry to record pension expense and the employer’s contribution to the pension plan in 2020. (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…

See attached picture 1. Determine the components of pension expense that the company would recognize in 2017. (With only one year involved, you need not prepare a worksheet) 2. Prepare the journal entry to record the pension expense and the company's funding of the pension plan in 2017

Question 16## Buffalo Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan. Plan assets   $463,200   Projected benefit obligation   578,200   Pension asset/liability   115,000   Accumulated OCI (PSC)   100,100 Dr. As a result of the operation of the plan during 2020, the following additional data are provided by the actuary. Service cost   $86,600 Settlement rate, 8%     Actual return on plan assets   53,200 Amortization of prior service cost   18,000 Expected return on plan assets   50,200 Unexpected loss from change in projected benefit obligation,   due to change in actuarial predictions   79,600 Contributions   99,600 Benefits paid retirees   85,100   Also please help me answer part B. (b)     Prepare the journal entry for pension expense for 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is…