Solomon, Inc. sponsors a defined benefit pension plan for its employees. On January 2020, the following balances and additional information related to this plan are: Plan assets, January 1, 2020 $170,000 Projected Benefit Obligation, January 1, 2020 260,000 Prior Service Cost, January 1, 2020 100,000 OCI-Loss, January 1, 2020 42,000 Service Cost for 2020 45,000 Actual return on plan assets 25,000 Amortization of PSC 15,000 Contributions in 2020 85,000 Benefits paid in 2020 51,000 Settlement rate 8% Expected return on assets 28,000 Average remaining service of life of active employees 10 years A. Prepare a pension worksheet using Excel B. Prepare the year journal entry to record the pension expense

Solomon, Inc. sponsors a defined benefit pension plan for its employees. On January 2020, the following balances and additional information related to this plan are: Plan assets, January 1, 2020 $170,000 Projected Benefit Obligation, January 1, 2020 260,000 Prior Service Cost, January 1, 2020 100,000 OCI-Loss, January 1, 2020 42,000 Service Cost for 2020 45,000 Actual return on plan assets 25,000 Amortization of PSC 15,000 Contributions in 2020 85,000 Benefits paid in 2020 51,000 Settlement rate 8% Expected return on assets 28,000 Average remaining service of life of active employees 10 years A. Prepare a pension worksheet using Excel B. Prepare the year journal entry to record the pension expense

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 6E

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Solomon, Inc. sponsors a defined benefit pension plan for its employees. On January 2020, the following balances and additional information related to this plan are: Plan assets, January 1, 2020 $170,000 Projected Benefit Obligation, January 1, 2020 260,000 Prior Service Cost, January 1, 2020 100,000 OCI-Loss, January 1, 2020 42,000 Service Cost for 2020 45,000 Actual return on plan assets 25,000 Amortization of PSC 15,000 Contributions in 2020 85,000 Benefits paid in 2020 51,000 Settlement rate 8% Expected return on assets 28,000 Average remaining service of life of active employees 10 years . Prepare the year journal entry to record the pension expense
Solomon, Inc. sponsors a defined benefit pension plan for its employees. On January 2020, the following balances and additional information related to this plan are: Plan assets, January 1, 2020 $170,000 Projected Benefit Obligation, January 1, 2020 260,000 Prior Service Cost, January 1, 2020 100,000 OCI-Loss, January 1, 2020 42,000 Service Cost for 2020 45,000 Actual return on plan assets 25,000 Amortization of PSC 15,000 Contributions in 2020 85,000 Benefits paid in 2020 51,000 Settlement rate 8% Expected return on assets 28,000 Average remaining service of life of active employees 10 years A. Prepare a pension worksheet using Excel B. Prepare the year journal entry to record the pension expense
Sandhill Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan. Plan assets $458,800 Projected benefit obligation 574,100 Pension asset/liability 115,300 Accumulated OCI (PSC) 103,900 Dr. As a result of the operation of the plan during 2020, the following additional data are provided by the actuary. Service cost $94,400 Settlement rate, 8% Actual return on plan assets 54,600 Amortization of prior service cost 19,100 Expected return on plan assets 51,500 Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions 75,700 Contributions 101,100 Benefits paid retirees 86,700 (a) Using the data above, compute pension expense for Sandhill Corp. for the year 2020 by preparing a pension worksheet. (Enter all amounts as positive.) SANDHILL CORP.Pension Worksheet General Journal…
Skysong Inc. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan. Plan assets $1,710,000 Projected benefit obligation 1,995,000 Pension liability 285,000 Prior service cost 246,000 As a result of the operation of the plan during 2020, the following additional data are provided by the actuary. Service cost for 2020 $135,000 Settlement rate, 6% Actual return on plan assets in 2020 112,000 Amortization of prior service cost 24,000 Expected return on plan assets 165,000 Unexpected gain from change in projected benefit obligation, due to change in actuarial predictions 215,000 Contributions in 2020 148,000 Benefits paid retirees in 2020 180,000
Bonita Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan. Plan assets $469,800 Projected benefit obligation 607,000 Pension asset/liability 137,200 Accumulated OCI (PSC) 97,100 Dr. As a result of the operation of the plan during 2020, the following additional data are provided by the actuary. Service cost $91,100 Settlement rate, 8% Actual return on plan assets 54,400 Amortization of prior service cost 19,100 Expected return on plan assets 51,600 Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions 79,700 Contributions 99,500 Benefits paid retirees 85,800 Using the data above, compute pension expense for Bonita Corp. for the year 2020 by preparing a pension worksheet. (Enter all amounts as positive.) BONITA CORP.Pension Worksheet General Journal Entries Memo…
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The following information pertains to a defined benefit pension plan that Arora Inc. sponsors in 2020. PBO balance, January 1, 2020 $160,000 Service cost 19,000 Interest cost 11,200 Prior service cost adjustment based on past service, January 1, 2020 30,000 Amortization of prior service cost 3,000 Actuarial gain on PBO 6,000 Benefits paid to retirees 2,500 Contributions to plan 18,000 What is the PBO balance on December 31, 2020? Select one: a. $228,700 b. $216,700 c. $211,700 d. $193,700
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 (a) Using the data above, compute pension expense for Buffalo Corp. for the year 2020 by preparing a pension worksheet. (Enter all amounts as positive.) BUFFALO CORP.Pension Worksheet General Journal Entries…
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 Pension Asset/Liability Projected BenefitObligation PlanAssets