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 $240,000 for 2024 and $330,000 for 2025. Year-end funding is $250,000 for 2024 and $260,000 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. Note: Enter your answers in thousands (i.e., 200,000 should be entered as 200). Enter a liability as a negative amount. 1. Projected benefit obligation 2. Plan assets 3. Pension expense 4. Net pension asset (liability) December 31, 2024 December 31, 2025

Pharoah Company adopts acceptable accounting for its defined benefit pension plan on January 1, 2024, with the following beginning balances: plan assets $202,100; projected benefit obligation $247,000. Other data relating to 3 years' operation of the plan are as follows. Annual service cost Settlement rate and expected rate of return Actual return on plan assets Annual funding (contributions) Benefits paid Prior service cost (plan amended, 1/1/25) Amortization of prior service cost Change in actuarial assumptions establishes a December 31, 2026, projected benefit obligation of: (a) (b) Date Dec. 31, 2024 Dec. 31, 2025 Dec. 31, 2026 V Account Titles and Explanation Pension Expense Other Comprehensive Income (G/L) Cash Pension Asset/Liability Pension Expense Other Comprehensive Income (PSC) Cash Pension Asset/Liability Pension Asset/Liability Other Comprehensive Income (G/L) Other Comprehensive Income (PSC) 2024 $16,100 Prepare the journal entries (from the worksheet) to reflect all…

Wildhorse Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2020 and 2021.     2020   2021 Plan assets (fair value), December 31   $817,830     $993,330   Projected benefit obligation, January 1   819,000     936,000   Pension asset/liability, January 1   163,800  Cr.   ?   Prior service cost, January 1   292,500     280,800   Service cost   70,200     105,300   Actual and expected return on plan assets   28,080     35,100   Amortization of prior service cost   11,700     14,040   Contributions (funding)   134,550     140,400   Accumulated benefit obligation, December 31   585,000     643,500   Interest/settlement rate   10 %   10 % Prepare the journal entries to record the pension expense and the company’s funding of the pension plan for both years.

Douglas-Robert, Inc. has a noncontributory, defined benefit pension plan. At December 31, 2022, Douglas-Robert received the following information:  Projected Benefit Obligation ($ in millions) Balance, January 1   $ 140     Service cost     40     Interest cost     14     Benefits paid     (10 )   Balance, December 31   $ 184         Plan Assets   Balance, January 1   $ 100     Actual return on plan assets     11     Contributions 2021     40     Benefits paid     (10 )   Balance, December 31   $ 141        The expected long-term rate of return on plan assets was 10%. There was no prior service cost and a negligible net loss—AOCI on January 1, 2022. Required:1. Determine Douglas-Robert’s pension expense for 2022.2. Prepare the journal entries to record Doublas Robert’s (a) pension expense, (b) funding, and (c) payment of retiree benefits in 2022.

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Coriander Co. (CC), a public company, has had a defined benefit pension plan for 30 years. Two years ago, CC improved the benefits at a cost of $3,100,000.   At July 1, 2020, pension plan assets were $60,000,000, and pension obligations were $50,000,000.   For the year ended June 30, 2021, CC’s pension plan incurred current service costs of $5,400,000, and the pension assets actually earned $4,400,000. There were NO actuarial gains or losses for the year ended June 30, 2021. CC’s discount rate is 8%.   Required:   Calculate CC’s pension expense for the year ended June 30, 2021, and prepare the journal entries for its pension plan during this period.

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 $180,000 for 2024 and $230,000 for 2025. Year-end funding is $190,000 for 2024 and $200,000 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: Note: Enter your answers in thousands (l.e., 200,000 should be entered as 200). Enter a llability as a negative amount. 1.…

Lewis Industries adopted a defined benefit pension plan on January 1, 2021. By making the provisions of the plan retroactive to prior years, Lewis incurred a prior service cost of $2 million. The prior service cost was funded immediately by a $2 million cash payment to the fund trustee on January 2, 2021. However, the cost is to be amortized (expensed) over 10 years. The service cost—$250,000 for 2021—is fully funded at the end of each year. Both the actuary’s discount rate and the expected rate of return on plan assets were 9%. The actual rate of return on plan assets was 11%. At December 31, the trustee paid $16,000 to an employee who retired during 2021.Required:Determine each of the following amounts as of December 31, 2021, the fiscal year-end for Lewis:1. Projected benefit obligation.2. Plan assets.3. Pension expense.

The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal years 2024 and 2025 are presented below ($ in millions): Information Provided by Pension Plan Actuary: a. Projected benefit obligation as of December 31, 2023 = $3,350. b. Prior service cost from plan amendment on January 2, 2024 = $650 (straight-line amortization for 10-year average remaining service period). c. Service cost for 2024 = $650. d. Service cost for 2025 = $700. e. Discount rate used by actuary on projected benefit obligation for 2024 and 2025 = 10%. f. Payments to retirees in 2024 $510. g. Payments to retirees in 2025 $580. h. No changes in actuarial assumptions or estimates. 1. Net gain-AOCI on January 1, 2024 = $375. J. Net gains and losses are amortized for 10 years in 2024 and 2025. Information Provided by Pension Fund Trustee: a. Plan asset balance at fair value on January 1, 2024 = $2,400. b. 2024 contributions $670. c. 2025 contributions $720. d. Expected long-term rate…

Louie Company's defined benefit pension plan had a PBO of $266,000 on January 1, 2021. During 2021, pension benefits paid were $45,000. The discount rate for the plan for this year was 10%. Service cost for 2021 was $83,000. Plan assets (fair value) increased during the year by $49,000. The amount of the PBO at December 31, 2021, was: Multiple Choice $221,000. $330,600. $375,600. None of these answer choices are correct. MacBook Air 身