Pina Co. has the following defined benefit pension plan balances on January 1, 2020.Projected benefit obligation$4,576,000Fair value of plan assets4,576,000The interest (settlement) rate applicable to the plan is 10%. On January 1, 2021, the company amends its pension agreement so thatprior service costs of $604,000 are created. Other data related to the pension plan are:20202021Service cost$149,000$170,000Prior service cost amortization90,000Contributions (funding) to the plan198,000184,000Benefits paid220,000282,000Actual return on plan assets255,000352,000Expected rate of return on assets6 %8 % Prepare any journal entries related to the pension plan that would be needed at December 31, 2020. (Credit account titles areautomatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles andenter O for the amounts.)DateAccount Titles and ExplanationDebitCreditDec. 31,Pension Expense2020CashPension Asset/Liability

Answered: e applicable to the pla

Business

Accounting

e applicable to the pla

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 4E

See similar textbooks

Related questions

Q: Question 4 (continued) Part 2: On January 1, 2021, Hamilton Financial (HF) acquired 30 percent of th...

Q: At the time of the event, which of the following does not result in a journal entry and an update of...

A: A general ledger is one of the basic foundations of any company's double-entry accounting system whi...

Q: Find out from the following a scientific and accurate method of factory overhead absorption: Percent...

A: The factory overhead is applied to the production on the basis of predetermined overhead rate.

Q: Fred is considering three job offers in advertising. • A full-time position as a coordinator that pa...

Q: Sunland Care centers Inc. provides financing and capital to the healthcare industry, with a particul...

A: A bond is borrowing security issued by the company to raise funds from the market by making an agree...

Q: PROBLEM 7: KUSINA Inc. had the following long-term receivable account balances at December 31, 2015....

A: Depreciation- Depreciation is thus the diminish in the price of assets and the process used to restr...

Q: Happy Trails has the following information for its manufacturing: Direct Materials $16 Direct Labor...

A: A variable costing income statement subtracts all variable costs from revenue to get at a separately...

Q: Zot Corporation has provided the following contribution format income statement Revenue (500 units) ...

A: The operating profit is essentially the base level profit derived by deducting operating expenses fr...

Q: Standards deals with the principles and methods of determining depreciation and amortization cost: C...

A: The correct answer for the above question is given in the following steps for your reference.

Q: he calculation for assessing the value of a firm's new logistics information system is below. Which ...

A: Investment- The purchase of an asset for the purpose of creating income or capital gain is known as ...

Q: Pina Co. has the following defined benefit pension plan balances on January 1, 2020. Projected benef...

A: A statement showing the item-wise amount of all the money received by an individual from the employe...

Q: A company that usually sells satellite TV equipment for $50 and two years of satellite TV service fo...

A: Revenue refers to the total amount of money received through the sale of items or services related t...

Q: Find the future value of the ordinary annuity. Interest is compounded annually. R=8000; i=0.07; n=15...

A: Future value of ordinary annuity = P x [(1 + i)^n - 1]i where, P = Annuity amount i = rate of inte...

Q: From these particulars prepare a Bank Reconciliation Statement of Brindha Ltd. by taking Balance as ...

A: Bank Reconciliation is used to reconcile the balance as per bank and balance as per books of account...

Q: CDO City started a Solid Waste Management initiative in partnership with Tetra Pak Philippines and B...

A: Trend is something which follow a similar pattern in coming/future period also. If the trend is incr...

Q: Calculating the Total Overhead Variance Standish Company manufactures consumer products and provided...

A: Standard costing means where standard is set for various cost element and actual cost is then compar...

Q: Katy invests $13,000 at 6% simple interest for 38 years. Round your answers to the nearest cent. How...

A: In Simple Interest Method, Interest = Principal x Rate x Time in Years Future Amount = Principal + I...

Q: Sagar Manufacturing Ltd. manufactures 2 products A, B. Also there are 2 activities (Quality Checks a...

A: >There are various methods to allocate the overhead support costs that are not directly related t...

Q: ABC Company’s record shows December 31 balance of P2,350,000 for its accounts receivable. The follow...

A: Adjusted balance of accounts receivables is the balance of AR after all the adjustments to be given ...

Q: Dar and Ling share in the partnership’s profit in the ratio of 2:1, respectively. Dar received P245,...

A: In partnership, the profit and loss from conducting the business are shared by the partners based on...

Q: Jelline Company insured the life of its president for P2,000,000, the entity being the beneficiary o...

A: Life insurance protects your loved ones' future by providing a lump sum payment in the event of a tr...

Q: On January 1 of the current year, the Jordan Morris Company purchased office machinery for $91,000. ...

A: The expenses charged to income statement as estimated cost of using fixed asset is called depreciati...

Q: Can you help me to calculate adjusted net income, adjusted net income if FV of security B were 285,0...

A: FVOCI is the abbreviation of Fair Value through Other Comprehensive Income, when adjustments are req...

Q: Rebecca and Irving incur the following medical expenses during 2020: Medical insurance premiums $4,5...

A: GIVEN Rebecca and Irving incur the following medical expenses during 2020: Medical insura...

Q: Robertson Company had purchased an equipment on January 1, 2019 for P 4,800,000. The entity used the...

A: Depreciation is the amount of expense which is shown in the income statement to show the decrease in...

Q: Answer the following problems. Show your solutions. Annuity 1. How much money will you accumulate by...

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any ...

Q: If an Investment of $5000 will grow to $8000 in four years with quarterly compounding the effective ...

A: The amount invested today will increase in the future if the amount is invested in some financial in...

Q: Clock Company showed the following errors in their account during December 31, 2021: Dividends of P...

A: Solution Concept Failure to record dividend has no impact on the net income as dividend paid is the ...

Q: 3. Pell Company acquires 80% of Demers Company for $500,000 on January 1, 2019. Demers reported comm...

A: Equity Method: The equity method of bookkeeping is the most common way of treating interests in part...

Q: Question 7: Contingencies Please answer the following questions using the information below taken fr...

A: Contingency is an event which may or may not occur in future depends on various contingent factors. ...

Q: a) Prepare Investment a/c in the Books of Shilpa and Co. for the Investments it made in Rajeev

A: Working Note :- Particulars Amount $ Amount $ Debentures purchased on ...

Q: a ) Prepare Investment alc in the Books of Shilpa and Co. for the Investments it made in Rajeev Itd....

A: Investment Accounting: It is the accounting of investment once investment instruments are paid. It d...

Q: The following data are available: variable cost per unit, P8, fixed cost per unit P10, profit P20,00...

A: “Since you have asked multiple questions, we will solve the first question for you. If youwant any s...

Q: Parwin Corporation plans to sell 39,000 units during August. If the company has 16,000 units on hand...

A: Formula: Units produced during the month = Ending inventory + August month sales - Beginning Invento...

Q: Hello Corp. acquired 80% of outstanding shares of Piknik Inc. the stock acquisition resulted to a go...

A: The control premium is the excess paid by a buyer over the market price of a pu...

Q: In 2010 Casey made a taxable gift of $5.7 million to both Stephanie and Linda (a total of $11.4 mill...

A: A gift tax is referred to as that tax that is imposed on cash or assets given by one person or corpo...

Q: f the error was discovered at Decembe nts Receivable, P 150,000; Credit Retained

A: There has been an error in recording sales revenue . The sale revenue year 2021 is recorded in 2022....

Q: On January 1, 2021, Banco de Oro made a 1,000,000 8% loan with interest receivable at the end of eac...

A: Principal Repayment- A principal payment is an imbursement that goes toward the reimbursement of the...

Q: Non-recognition of deferral at the end of the accounting period will a.understate income and und...

A: Deferrals means the payment made or received for the expenses or the income which has not been yet p...

Q: NNicole organized a new corporation. The corporation began business on April 1 of year 1. She made t...

A: Organizational expenses are those that are directly tied to the firm's establishment. If the corpora...

Q: Net Income for 2019? Net Income for 2020? Net Income for 2021? Retained Earnings as of December 31, ...

A: Net income is transferred to retained earning account

Q: Total Manufacturing costs are also known as product costs. Which of the following best describes tho...

A: Direct material - It is the cost of raw material from which final product is made . Direct labour -...

Q: Bennoit Corporation paid dividends totaling €295,000 to its shareholders. This transaction will decr...

A: Hi student Since there are multiple questions, we will answer only first question.

Q: Logistics Solutions provides order fulfillment services for dot.com merchants. The company maintains...

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a...

Q: $48,400. The machine's useful life is estimated at 10 years, or 394,000 units During its second year...

A: The double declining balance method of depreciation, also known as the 200% declining balance method...

Q: Kai and her very close friend Bigan formed a partnership on January 1,2015 with Kain contributing P1...

A: The partnership comes into existence when two or more persons agree to do the business and further s...

Q: Recording of next year's sales as sales of the current year will Group of answer choices a.overstat...

A: If we record next year's sales as sales of the current year it will increase the total sales and net...

Q: July 30 Advertising expense was paid by the corporation amounted to P5,000. Aug. 01 At the public au...

A: Subscription of Shares Subscription of shares which was incurred at the time of shares were authoriz...

Q: Bonita Inc. reports the following pretax income (loss) for both book and tax purposes. Pretax Year I...

A: The income tax is an expense for business entity which is charged on the generated income for each y...

Q: 15 Question 6: Inventories Answer the following three questions using the below information taken fr...

A: COGS is an abbreviation for Cost of goods sold, meaning cost incurred by the entity for making the g...

Concept explainers

Regulation of Commercial Banks

The main function of any commercial bank is accepting deposits and lending money to borrowers. Apart from these two activities, commercial banks provide a host of other services to their customers, like discounting bills of exchange, acting as a custodian of a customer's will, and so on. In the absence of a proper regulatory framework or proper regulations in place, the commercial banks would have ended up charging exorbitant or varied rates of interest or service charges on the funds loaned by them or the services performed by them.

Question

Pina Co. has the following defined benefit pension plan balances on January 1, 2020.
Projected benefit obligation
$4,576,000
Fair value of plan assets
4,576,000
The interest (settlement) rate applicable to the plan is 10%. On January 1, 2021, the company amends its pension agreement so that
prior service costs of $604,000 are created. Other data related to the pension plan are:
2020
2021
Service cost
$149,000
$170,000
Prior service cost amortization
90,000
Contributions (funding) to the plan
198,000
184,000
Benefits paid
220,000
282,000
Actual return on plan assets
255,000
352,000
Expected rate of return on assets
6 %
8 %

Prepare any journal entries related to the pension plan that would be needed at December 31, 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 O for the amounts.)
Date
Account Titles and Explanation
Debit
Credit
Dec. 31,
Pension Expense
2020
Cash
Pension Asset/Liability

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Given the following information for Tyler Companys pension plan at the beginning of the year, calculate the corridor, excess net loss (gain), and amortized net loss (gain). Assume an average remaining service life of 15 years.
Pinecone Company has plan assets of 500,000 at the beginning of the current year and expects to earn 12% on its plan assets during the year. Pinecones service cost is 230,000, and its interest cost is 55,000. Compute Pine-cones pension expense for the current year.
On January 1, 2020, Indigo Company has the following defined benefit pension plan balances. Projected benefit obligation $4,571,000 Fair value of plan assets 4,210,000 The interest (settlement) rate applicable to the plan is 10%. On January 1, 2021, the company amends its pension agreement so that prior service costs of $492,000 are created. Other data related to the pension plan are as follows. 2020 2021 Service cost $152,000 $179,000 Prior service cost amortization 89,000 Contributions (funding) to the plan 236,000 285,000 Benefits paid 198,000 275,000 Actual return on plan assets 252,600 261,000 Expected rate of return on assets 6 % 8 % Annual Pension Items Expense Cash Balance, Jan. 1, 2020 2$ $ Service cost Interest cost Actual return Contributions Benefits Journal entry for 2020 $ $ Accumulated OCI, Dec. 31, 2019 Balance, Dec. 31, 2020 Additional PSC, 1/1/2021 Balance, Jan. 1, 2021 Service cost Interest cost Actual return Unexpected loss Amortization of PSC Contributions Benefits…
On January 1, 2020, Blue Company has the following defined benefit pension plan balances. Projected benefit obligation $4,506,000 Fair value of plan assets 4,220,000 The interest (settlement) rate applicable to the plan is 10%. On January 1, 2021, the company amends its pension agreement so that prior service costs of $508,000 are created. Other data related to the pension plan are as follows. 2020 2021 Service cost $152,000 $179,000 Prior service cost amortization 0 91,000 Contributions (funding) to the plan 237,000 281,000 Benefits paid 202,000 284,000 Actual return on plan assets 253,200 262,000 Expected rate of return on assets 6 % 8 %
On January 1, 2020, Windsor Company has the following defined benefit pension plan balances. Projected benefit obligation $4,485,000 Fair value of plan assets 4,240,000 The interest (settlement) rate applicable to the plan is 10%. On January 1, 2021, the company amends its pension agreement so that prior service costs of $494,000 are created. Other data related to the pension plan are as follows. 2020 2021 Service cost $148,000 $177,000 Prior service cost amortization 90,000 Contributions (funding) to the plan 244,000 288,000 Benefits paid 200,000 275,000 Actual return on plan assets 254,400 260,000 Expected rate of return on assets 6 % 8 %
Prepare any journal entries related to the pension plan that would be needed at December 31, 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 O for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, Pension Expense 2020 Other Comprehensive Income (G/L) 19560 Cash 198000 Pension Asset/Liability
Pronghorn Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan. Plan assets $497,900 Projected benefit obligation 571,700 Pension asset/liability 73,800 Accumulated OCI (PSC) 101,400 Dr. As a result of the operation of the plan during 2020, the following additional data are provided by the actuary. Service cost $87,700 Settlement rate, 9% Actual return on plan assets 53,100 Amortization of prior service cost 18,300 Expected return on plan assets 50,200 Unexpected loss from change in projected benefit obligation,   due to change in actuarial predictions 74,400 Contributions 97,200 Benefits paid retirees 84,500 Prepare the journal entry for pension expense for 2020
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…
On January 1, 2020, Flounder Company has the following defined benefit pension plan balances. Projected benefit obligation $4,492,000 Fair value of plan assets 4,270,000 The interest (settlement) rate applicable to the plan is 10%. On January 1, 2021, the company amends its pension agreement so that prior service costs of $491,000 are created. Other data related to the pension plan are as follows. 2020 2021 Service cost $150,000 $177,000 Prior service cost amortization 0 90,000 Contributions (funding) to the plan 237,000 286,000 Benefits paid 196,000 284,000 Actual return on plan assets 256,200 262,000 Expected rate of return on assets 6 % 8 % (a) Prepare a pension worksheet for the pension plan for 2020 and 2021. (Enter all amounts as positive.)                                    General Journal entries…
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…
The following information regarding Buffalo Ltd.’s defined benefit pension plan was taken from the company’s records for 2020: Defined Benefit Obligation, January 1 $9,941,000 Actual return on plan assets 434,000 Benefits paid to retirees 848,000 Current year service cost 1,210,000 Interest cost 496,000 Employer contributions for the year 998,000 Pension Plan Assets, January 1 8,832,000 Prepare a continuity schedule for the DBO for 2020. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)