Actual return on plan assets$13Interest cost$9Benefits paid to retirees8Opening balance, defined benefit obligation93Contributions from employer23Opening balance, plan assets103Cost of plan amendment in year15Current service cost25Defined benefit obligation, ending balance = $134Provide a continuity schedule for the plan assets for the year. (Enter liabilities and underfunded answer amounts using either a negative signpreceding the number e.g. -55 or parentheses e.g. (55).)SANDHILL Corp.Continuity Schedule2023(in hundreds of thousands)GA$$

Pension plan assets is the fund generated by the company for meeting the future compensation…

Actual return on plan assets $13 Interest cost $9 Benefits paid to retirees 8 Opening balance, defined benefit obligation 93 Contributions from employer 23 Opening balance, plan assets 103 Cost of plan amendment in year 15 Current service cost 25

Actual return on plan assets $13 Interest cost $9 Benefits paid to retirees 8 Opening balance, defined benefit obligation 93 Contributions from employer 23 Opening balance, plan assets 103 Cost of plan amendment in year 15 Current service cost 25

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Analyzing Changes in Plan Assets and PBO The following information pertains to a company's defined benefit plan for the year. Balance Fair value of plan assets, Jan. 1 Fair value of plan assets, Dec. 31 Projected benefit obligation, Jan. 1 Net pension asset (liability), Dec. 31 Activity for the Year Actual return on plan assets $300 Contributions to plan assets 450 Service cost 500 $ 400 Discount rate 8% Expected rate of return on plan assets 7% Required a. Calculate benefits paid to retirees during the year. Note: Do not use a negative sign with your answer. Other $ Check X b. Calculate any actuarial gain or loss on the PBO for the year. Note: Use a negative sign to indicate a loss. $5,000 Dr. 5,625 Dr. 5,000 Cr. 200 Cr. x
A company that sponsors a defined benefit plan records an entry to debit OCI-Pension Gain/Loss for $5,000 and credit Plan Assets. The company uses the corridor approach to amortize Accumulated OCI-Pension Gain/Loss. This entry indicates that Select one: O a. The expected return on plan assets exceeded actual return on plan assets. O b. The actual return on plan assets exceeded the expected return on plan assets. O c. The beginning balance in Accumulated OCI-Pension Gain/Loss exceeded the corridor. O d. The beginning balance in Accumulated OCI-Pension Gain/Loss did not exceed the corridor. e. a and c f. b and d OO
NOTE 17: EMPLOYEE BENEFIT PLANS (in part) ($ in millions) Changes in projected benefit obligation: Obligation at beginning of period Service cost Interest cost Pension Benefits 2020 2019 $ 648 1 $ 637 1 31 34 Actuarial (gain) loss Benefits paid Obligation at end of period Change in plan assets: 54 37 (50) (50) $ 684 $ 659 Fair value of plan assets at beginning of period Actual return (loss) on plan assets* $ 496 $ 431 70 52 Employer contribution 24 74 Benefits paid (50) (50) Fair value of plan assets at end of period 540 507 Net liability recognized at end of period $ (144) $ (152) *Expected return $30 and $29 in 2020 and 2019, respectively Required: 1. What amount did Maur report in its balance sheet related to the pension plan at June 30, 2020? 2. When calculating pension expense at June 30, Maur included $10 million in its income statement as the amortization of unrecognized net actuarial loss (net loss-AOCI). This AOCI account had a balance of $350 million at the beginning of the…
Benefit obligation, 1/1/2022, P9MFVPA, 1/1/2022, P10MCurrent service cost, P1.7MPast service cost, P500KBenefits paid to retirees, P2.2MContribution to the plan, P2MActual return on plan assets, P1.5MActuarial loss due to remeasurement of benefit obligation, P400KDiscount rate, 12%There are no asset ceilings at the beginning and end of the year.What is the benefit obligation of DEF Co. on Dec. 31, 2022?
Benefit obligation, 1/1/2022, P9MFVPA, 1/1/2022, P10MCurrent service cost, P1.7MPast service cost, P500KBenefits paid to retirees, P2.2MContribution to the plan, P2MActual return on plan assets, P1.5MActuarial loss due to remeasurement of benefit obligation, P400KDiscount rate, 12%There are no asset ceilings at the beginning and end of the year.How much is the defined benefit cost for 2022?
NOTE 17: EMPLOYEE BENEFIT PLANS (in part) ($ in millions) Changes in projected benefit obligation: Obligation at beginning of period Service cost Interest cost Actuarial (gain) loss Benefits paid Obligation at end of period Change in plan assets: Fair value of plan assets at beginning of period Actual return (loss) on plan assets* Employer contribution Benefits paid Fair value of plan assets at end of period Net liability recognized at end of period *Expected return $20 and $19 in 2020 and 2019, respectively Req 1 to 3 Pension Benefits 2020 Req 4 $ 608 1 21 44 (40) $634 Complete this question by entering your answers in the tabs below. $ 486 50 14 (40) 510 $ (124) View transaction list 2019 $ 597 1 24 Required: 1. What amount did Maur report in its balance sheet related to the pension plan at June 30, 2020? 2. When calculating pension expense at June 30, Maur included $10 million in its income statement as the amortization of unrecognized net actuarial loss (net loss-AOCI). This AOCI…
Analyzing Changes in Plan Assets and PBO The following information pertains to a company’s defined benefit plan. Balance Fair value of plan assets, Jan. 1, 2020 $2,000 Dr. Fair value of plan assets, Dec. 31, 2020 2,250 Dr. Projected benefit obligation, Jan. 1, 2020 2,000 Cr. Net pension asset (liability), Dec. 31, 2020 80 Cr. Activity 2020 Actual return on plan assets $120 Contributions to plan assets 180 Service cost 200 Other Discount rate 8% Expected rate of return on plan assets 7% Required a. Calculate benefits paid to retirees in 2020. Note: Do not use a negative sign with your answer.$Answer b. Calculate any actuarial gain or loss on the PBO in 2020.Note: Use a negative sign to indicate a loss. $Answer
Help Save & Exit Submit The following information is related to the defined benefit penslon plan of Dreamworld Company for the year: Service cost Contributions to pension plan Benefits paid to retirees Plan assets (fair value), January 1 Plan assets (fair value), December 31 Actual return on plan assets $ 60,000 110,000 150,000 640,000 750,000 150,000 900,000 960,000 PBO, January 1 PBO, December 31 Discount rate 10% Long-term expected return on plan assets 9% Assuming no other relevant data exist, what is the pension expense for the year? Multiple Choice $60,000. $170,000. Next > Prev 12 of 39 SI Question no...pages pdf Question no....pages MacBook Air
Problem 26-3 (IAA) Rachel Company revealed the following information for the current year: Fair value of plan assets-January 1 Projected benefit obligation-January 1 Current service cost Past service cost Actual return on plan assets Contribution to the plan Benefits paid to retirees Discount rate 1. What amount should be reported as employee benefit expense? a. 2,000,000 2,200,000 c. 2,500,000 d. 1,750,000 2. What amount should be reported as fair value of plan assets on December 31? a. 7,000,000 b. 6,500,000 c. 6,200,000 d. 5,500,000 5,000,000 7,500,000 1,450,000 300,000 500,000 1,500,000 800,000 10% 3. What amount should be reported as projected benefit obligation on December 31? a. 9,250,000 b. 9,700,000 c. 8,950,000 d. 9,200,000 4. What amount should be reported as accrued benefit cost on December 31? a. 3,000,000 b. 2,500,000 c. 2,000,000 d. 1,500,000
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…
d. Prepare a reconciliation of the beginning and ending balances The following information is taken from the actuarial valuation report of Daddy, Inc.'s defined benefit plan: Fair value of plan assets, Jan. 1 Present value of defined benefit obligation, Jan. 1 Past service cost from plan amendment during the year (the vesting period is 5 yrs.)es 2,100,000 2,400,000 300,000 Current service cost 600,000 Benefits paid to retirees during the Actuarial gain during the period Return on plan assets during the period Contributions to the fund during the year Discount rate based on high quality corporate bonds year 450,000 15,000 270,000 480,000 12% Requirements: a. Determine net defined benefit liability/asset as of Jan. 1, 20x1 and Dec. 31, 20x1, respectively. b. Compute for the defined benefit cost in 20x1, showing amoúnts recognized in P/L and OCI, respectively. c. Provide the journal entries in 20x1. Prepare a reconciliation of the beginning and ending balances с. d. of net defined benefit…
Projected Benefit Obligation Balance, January 1, 2024 Service cost Interest cost, discount rate, 5% Gain due to changes in actuarial assumptions in 2024 Pension benefits paid Balance, December 31, 2024 Plan Assets Balance, January 1, 2024 Actual return on plan assets (Expected return on plan assets, $49) Cash contributions Pension benefits paid Balance, December 31, 2024 January 1, 2024, balances: Pension asset ($ in millions) $ 680 70 34 (18) (34) $ 732 ($ in millions) $ 740 44 85 (34) $ 835 ($ in millions) $ 60 30 124 Prior service cost-AOCI (amortization $6 per year) Net gain-AOCI (any amortization over 10 years) Required: Prepare a pension spreadsheet to show the relationship among the PBO, plan assets, prior service cost, the net gain, pension expense, and the net pension asset.