Required: 1. Prepare all the journal entries for 2020 and 2021. 2. Determine the carrying amount of prepaid/accrued pension cost as of December 31, 2020 and December 31, 2021.
Q: LetsGo Inc. sponsors a defined benefit plan and determined that for the current year of 2020,…
A: Particulars Amount Service cost $400,000 Interest cost $33,760 Expected return on plan assets…
Q: W13-2 Violet Company provides the following information about its defined benefit pension plan for…
A: Defined benefit plan is a type of plan which is sponsored by the employer. In this method, the…
Q: On December 31, 2019, Robey Company accumulated the following information for 2019 in regard to its…
A: 1. Calculate the pension expense for Robey for the year 2019.
Q: Recording Pension Expense, Plan Funding, Benefit Payments LetsGo Inc. sponsors a defined benefit…
A: Pension Expenses: It is the amount charged to expenses by business in respect of liabilities for…
Q: In pension accounting, the employer's net pension liability:
A: Govermetal accounting standard Board 68 defined the Net pension liabilities. The net pension…
Q: Required: 1. What is the pension expense at the end of 2021? 2. What is the projected benefit…
A: “Hey, since there are multiple requirements posted, we will answer first three requirements. If you…
Q: The following information was obtained from the financial statements of X Inc. Defined Benefit Plan…
A: Here asked for multi sub part question we will solve first three sub part question for you. If you…
Q: Vaughn Enterprises provides the following information relative to its defined benefit pension plan.…
A: As sub parts A and B are solved in question itself so we are answering only C sub part .
Q: During 2019, the Electric Company experienced a difference between its expected and actual projected…
A: Step 1 As per, US GAAP employee benefits profit or loss is found on the basis of fair value future…
Q: Buffalo Enterprises provides the following information relative to its defined benefit pension plan.…
A: Accumulated other comprehensive income (loss) = Accumulated OCI (PSC) +Accumulated OCI—Net loss
Q: Determine the amounts of the components of penaion expense that should be recognized by the company…
A: Pension expense (PE) refers to those expenses which are charged by the company in relation to pay…
Q: Vaughn Enterprises provides the following information relative to its defined benefit pension plan.…
A: Comprehensive income: It contains Unrealized Part of income in addition with Net income.
Q: (a) Prepare a pension worksheet inserting January 1, 2020, balances, showing December 31, 2020.…
A: The pension expense consists of four main components such as current service cost, past service…
Q: At December 31, 2020, Besler Corporation had a projected benefit obligation of $560,000, plan assets…
A: Pension Asset: A pension asset is the funds of a company they use to meet their future compensations…
Q: The following are made available for the defined benefit pension plan of Pores Corporation as of…
A: As per IAS 19 Employee Benefits, every organisation maintain pension plan for employees and for that…
Q: ABC Inc. follows IFRS for financial reporting purposes and has established a defined benefit pension…
A: Pension Benefit Obligation The calculation of pension benefit obligation to added up the service…
Q: At January 1, 2019, Jolly Company had plan assets of P2, 800,000 and a projected benefit obligation…
A: Pension: It refers to a reserve made for employee retirement period by depositing the sum of money…
Q: On December 31, 2019, Johnson Company accumulated the following information for 2019 in regard to…
A: Answer 1: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…
Q: A company had the following information concerning the operation of the company's defined-benefit…
A: SOLUTION- PENSION EXPENSE- UNDER THIS AN EMPLOYER PROVIDES A PREDETERMINED PERIODIC PAYMENT TO…
Q: Buffalo Enterprises provides the following information relative to its defined benefit pension plan.…
A: a) Note disclosing the components of pension expense for the year 2020 Particulars Amount…
Q: The following information was obtained from the financial statements of X Inc. Defined Benefit Plan…
A: SOLUTION- PENSION MEANS MONEY THAT IS PAID REGULARLY BY A GOVERNMENT OR COMPANY TO SOMEBODY WHO HAS…
Q: uffalo Enterprises provides the following information relative to its defined benefit pension plan.…
A: Comprehensive income is the sum of net income and any other items that must be excluded from the…
Q: Ivanhoe, Inc. received the following information from its pension plan trustee concerning the…
A: Particulars Amount($) Service cost 350,000 Add:…
Q: Windsor Enterprises provides the following information relative to its defined benefit pension plan.…
A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…
Q: Determine the amounts of the components of pension expense that should be recognized by the company…
A: Pension :— Money that is paid regularly by a government or companies to some body who has stopped…
Q: Ayayai Enterprises provides the following information relative to its defined benefit pension plan.…
A: Actuarial loss on plan assets = Expected return on plan assets - Actual return on plan assets
Q: The following facts for Storm plc apply to the pension plan for 2019. 1. Annual service cost is…
A: Pension worksheet summarizes all the entries to be recorded for the year in terms of the defined…
Q: Presented below is information related to Sandhill Inc. pension plan for 2021. Service cost $…
A: Pension Expense = (Service cost+Interest on projected benefit obligation+Amortization of prior…
Q: Enterprises provides the following information relative to its defined benefit pension plan.…
A: Comprehensive income includes net income and unrealized income, such as unrealized profits or losses…
Q: What is the 2021 pension expense for Foundry's plan? Multiple Choice
A: First, calculate service cost: Service cost=Ending PBO+Retirement benefits-Interest cost-Beginning…
Q: participating employees who are expected to receive the retroactive benefits. Following is a…
A: Journal entry refers to posting of the transaction of the financial nature into the books of the…
Q: The following information is available for the pension plan of Vaughn Company for the year 2020.…
A: When computing pension expense for the year it considers service cost, interest cost and gain /…
Q: Larkspur Company provides the following information about its defined benefit pension plan for the…
A: The defined benefit pension plan relates to an employer-sponsored pension plan wherein the employee…
Q: Sage Company provides the following selected information related to its defined benefit pension plan…
A: Interest cost = Projected benefit obligation opening balance × settlement rate
Q: The Pension Expense in a pension plan for the year were recorded at $856,800. In addition, an amount…
A: Under ASPE, The amount of pension expense that company will record is the pension expense which…
Q: At December 31, 2020, Metlock Corporation had a projected benefit obligation of $504,700, plan…
A: Given: Projected benefit obligation = $504,700 Plan assets = $342,200
Q: Determine the pension asset/liability at December 31, 2019.
A: The projected benefit obligation refers to an actuarial estimate of what the company currently needs…
Q: At December 31, 2020, Sheffield Corporation had a projected benefit obligation of $ 614,800, plan…
A: The pension liability is the amount to be paid employees at the time of retirement.
Q: Balances or Values at December 31, 2020 Projected benefit obligation $2,761,900 Accumulated…
A: Pension expense is the sum charged to expense by a firm in relation to its liabilities for employee…
Q: Pronghorn Enterprises provides the following information relative to its defined benefit pension…
A: In accounting, other comprehensive income (OCI) includes revenues, expenses, gains, and losses that…
Q: Exercise Sweet Enterprises provides the following information relative to its defined benefit…
A: Accumulated other comprehensive income( OCI) is that income which includes unrealized gains and…
Q: Sandhill Corporation received the following report from its actuary at the end of the year:…
A: Solution: Projected benefit obligation 4384000 Less: Fair value of pension plan asset -3152000…
Q: An employer maintains pension trust for its employees. The following information are made:…
A: Only current year service costs are deductible.
Q: The following information relates to the defined benefit pension plan for the McDonald Company for…
A: Return on plan assets = Fair value of plan assets, December 31 + Benefits paid to retirees -…
Q: Wildhorse Enterprises provides the following information relative to its defined benefit pension…
A: Pension: It is the retirement plan payment for government and private employees which is received in…
Q: Instruetions: (a) Determine the amounts of the components of pension expense that should be…
A: Pension expense is defined as the equivalent sum recorded by the entity for expenses associated with…
Q: Calculate: (i) Pension expense to be recognised in profit or loss for the year ended December 31,…
A: Pension Expense to be recognized in profit or loss For the year ended December 31, 2020.…
Q: At January 1, 2020, Cullumber Company had plan assets of $305,800 and a projected benefit obligation…
A: Working Notes: 1. Interest Cost = plan assets * the settlement rate = ($305,800*10/100) = $30,580…
Step by step
Solved in 2 steps
- In 2019, Magenta Corporation paid compensation of 45,300 to the participants in a profit sharing plan. During 2019, Magenta Corporation contributed 13,200 to the plan. a. Calculate Magentas deductible amount for 2019. b. Calculate the amount of any contribution carryover from 2019.Lemur Corp. is going to pay three employees a year-end bonus. The amount of the year-end bonus and the amount of federal income tax withholding are as follows. Lemurs payroll deductions include FICA Social Security at 6.2%, FICA Medicare at 1.45%, FUTA at 0.6%, SUTA at 5.4%, federal income tax as previously shown, state income tax at 5% of gross pay, and 401(k) employee contributions at 2% of gross pay. Record the entry for the employee payroll on December 31.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 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?
- 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 accruedJoshua 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 prepaidCompany A has established a defined benefit plan for the employee. Annual payments under the plan are equal to highest lifetime salary multiplied by 2% multiplied by the number of years with the entity. On December 31, 2020, an employee had worked with the entity for 15 years. The current annual salary of the employee is P600,000. The employee is expected to retire in 10 years and the increase in salary is expected to be 4% per year. The discount rate is 10%. The employee is expected to live 8 years after retirement and shall receive the first annual pension payment one year after retirement. Compute for the ff: 1)Current service cost in 2021, 2022, 2023 and 2024 2)Interest expense in 2021, 2022, 2023 and 2024 3)PBO, Dec. 31,2021, Dec. 31,2022, Dec. 31,2023 and Dec. 31,2024
- In the year 2021, Qiqi Company provides benefits to employees through a defined contribution plan. The plan has the following details: • 10% of gross payroll is to be contributed to the funding agency• 5% annual sales exceeding P12,000,000. • gross payroll of the company was P10,500,000• total sales amounted to P35,000,000.• Friday contributed P3,200,000 to the employees’ pension fund for the year.Requirements:1. Provide the journal entries for the year 2021.2. What amount of Prepaid /Accrued benefit expense will be recognized at the end of 2021?Greg Company provides retirement benefits to employees through defined contribution plan. The plan provides that Greg Company shall contribute annually 9% of gross payroll to a funding agency. In addition, the entity is also required to contribute 6% of annual sales exceeding 15,000,000. During 2020, gross payroll of the company was P 6,500,000 and total sales amounted to P 32,000,000. How much is the retirement benefit expense taken to profit or loss for the year 2020? Assuming that during 2020, the company contributed P 1,700,000 to the trustee. How much is the prepaid or accrued benefit arising from the transaction?Rachel Company has established a defined benefit pension plan for its employees. Annual payments under the pension plan are equal to 3% of an employee’s highest lifetime salary multiplied by the number of years with the entity. An employee’s salary in 2021 was P300,000. The employee is expected to retire in 10 years and the salary increases are expected to average 4% per year during that period. On December 31, 2021, the employee has worked for 12 years. The appropriate discount rate is 10% and the employee is expected to live for 5 years after retirement. 1. What is the current service cost for 2022? 2. What is the interest cost for 2023? 3. What is the projected benefit obligation on December 31, 2024?
- Rachel Company has established a defined benefit pension plan for its employees. Annual payments under the pension plan are equal to 3% of an employee’s highest lifetime salary multiplied by the number of years with the entity. An employee’s salary in 2021 was P300,000. The employee is expected to retire in 10 years and the salary increases are expected to average 4% per year during that period. On December 31, 2021, the employee has worked for 12 years. The appropriate discount rate is 10% and the employee is expected to live for 5 years after retirement. a. What is the amount of annual pension payment to be used in computing the employee’s projected benefit obligation on December 31, 2021? b. What is the projected benefit obligation on December 31, 2021? c. What is the current service cost for 2022?Rachel Company has established a defined benefit pension plan for its employees. Annual payments under the pension plan are equal to 3% of an employee’s highest lifetime salary multiplied by the number of years with the entity. An employee’s salary in 2021 was P300,000. The employee is expected to retire in 10 years and the salary increases are expected to average 4% per year during that period. On December 31, 2021, the employee has worked for 12 years. The appropriate discount rate is 10% and the employee is expected to live for 5 years after retirement. 1. What is the current service cost for 2022?