The following information for Sheridan Enterprises is given below: December 31, 2021 Assets and obligations Plan assets (at fair value) $720000 Accumulated benefit obligation 1235000 Projected benefit obligation 1325000 Other Items Pension asset / liability, January 1, 2021 35000 Contributions 410000 Accumulated other comprehensive loss 628700 There were no actuarial gains or losses at January 1, 2021. The average remaining service life of employees is 10 years.What is the amount that Sheridan Enterprises should report as its pension liability on its balance sheet as of December 31, 2021? $1325000 $90000 $1235000 $605000

Pensions are a liability for every business under defined pension plan. Business makes funding for…

Answered: The following information for Sheridan…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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The following information for Sheridan Enterprises is given below:

		December 31, 2021
Assets and obligations
	Plan assets (at fair value)		$720000
	Accumulated benefit obligation		1235000
	Projected benefit obligation		1325000
Other Items
	Pension asset / liability, January 1, 2021		35000
	Contributions		410000
	Accumulated other comprehensive loss		628700

There were no actuarial gains or losses at January 1, 2021. The average remaining service life of employees is 10 years.

What is the amount that Sheridan Enterprises should report as its pension liability on its balance sheet as of December 31, 2021?

$1325000

$90000

$1235000

$605000

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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