Under the defined-benefit pension plan for a company, the expected return on plan assets is $124,000 and actual return on plan assets is $269,000 in 2021. To record the unexpected gain/loss due to asset returns, the company will (enter 1, 2, 3, or 4 that represents the
Q: Oriole Company has available the following information about its defined-benefit pension plan for…
A: Pension accounting may be fairly difficult, specifically in the context of defined benefit schemes.…
Q: A company had the following information about the company's defined-benefit pension plan:…
A: SOLUTION- PENSION EXPENSE- IT IS THE AMOUNT THAT A BUSINESS CHARGES TO EXPENSE IN RELATION TO ITS…
Q: The following information relates to the defined benefit pension plan of ABC Company for the year…
A: Particulars Debit (P) Particulars Credit (P) Beginning balance 9,500,000 Actuarial loss 120,000…
Q: On January 1, 2020, Hulk Ltd. reported the following balances relating to their defined benefit…
A: Defined benefit obligations Plan Assets Net (liability)/Assets Opening $1,600,000 Opening…
Q: Goldman Company has a defined benefit pension plan. The following pension-related data were…
A: 1) Service cost 31,000 Interest cost 11,500 Return on plan assets -21,500…
Q: The following information is related to the defined benefit pension plan of a company for 2021.…
A: Pension is an expense a company charges to expense for the pension amount payable to its employees.…
Q: Pension expense for 2021
A: Pension expense represent the actual contribution to the pension plan by the organization in the…
Q: The following information is made available involving the defined benefit pension plan of Princess…
A: Defined benefit plans are plans that are made or established by the company for the benefit of…
Q: The pension asset / liability reported on the balance sheet at December 31, 2021 is: pension…
A: Given information is: Projected benefit obligation = $16,00,000 Accumulated OCI -net gain = $580,000…
Q: The following information is related to the pension plan of B, Inc. for 2016. Actual return on plan…
A: Service cost 800,000 Interest on defined benefit obligation 326500 net gain on liability -82500…
Q: Taveras Enterprises provides the following information relative to its defined benefit pension plan.…
A:
Q: On January 1, 2020, McGee Co. had the following balances: Projected benefit obligation…
A: Answer - Part 1 - Calculation of the projected benefit obligation at December 31, 2020…
Q: M Service Co. reported the following for its defined-benefit pension plan for 2020:…
A: A projected benefit obligation (PBO) is an actuarial measurement of what a company will need at the…
Q: The following information is related to the defined benefit pension plan of Dreamworld Company for…
A: Interest cost = PBO, January 1 x Discount rate = 900000 x 10% = $90,000
Q: The following information is made available involving the defined benefit pension plan of Princess…
A: Interest cost = Defined benefit obligation x discount rate = 3750000 x 10% = 375000
Q: 499,000 Benefits paid 294,350 Amortization of prior service costs 111,000 In the journal entry…
A: Journal entry: Journal entry is the book of original entry where first transactions are recorded in…
Q: The following information for Sheridan Enterprises is given below: December 31, 2021…
A: Pensions are a liability for every business under defined pension plan. Business makes funding for…
Q: Sandhill Corp. has the following beginning-of-the-year present values for its projected benefit…
A: Amortization is an accounting technique to capitalize the value of an intangible asset over a set…
Q: PUP CAF Company has the following information related to its defined benefit plan for year 2021: >…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: The following data are for the pension plan for the employees of Lockett Company. 1/1/14…
A: Actual return on plan assets in 2015 = Plan assets on 12/31/15 - contribution made + benefits paid…
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: On January 1, 2021, a company has the following balances for its defined-benefit plan: Projected…
A: Given Information: Projected benefit obligation $661,000 Fair value of plan assets…
Q: A company had the following information at the end of 2021: Accumulated benefit obligation…
A: Formula: Pension liability = Projected benefit obligation - Fair value of pension plan Assets.
Q: The following information is available for the pension plan of Wildhorse Company for the year 2020.…
A: Pension expense is the sum charged to expense by a firm in relation to its liabilities for employee…
Q: The following data are for the pension plan for the employees of Lockett Company 1/1/14 12/31/14…
A: Actual Returns - It is the amount of money earned by the company/individuals earn money putting its…
Q: On January 1, 2021, Parks Co. has the following balances: Projected benefit obligation $5,600,000…
A: Benefit refers to profit.Obligation is Zn important part of accounting which is also called as…
Q: The actuary for the pension plan of Gustafson Inc. calculated the following net gains and losses.…
A:
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 apply to the pension plan of Sheridan Inc. for the year 2020. Sheridan applies…
A: A pension, also known as a superannuation fund in some countries, is any plan, fund, or scheme which…
Q: Splish Company sponsors a defined benefit pension plan. The following information related to the…
A: Computation of pension expenses for 2020 and 2021: 2020 2021 Service cost $63,000 $94,500…
Q: M Service Co. reported the following for its defined-benefit pension plan for 2020:…
A: Introduction: A projected benefit obligation (PBO) is an economic assessment of how much money a…
Q: Horizon Inc. has a defined benefit pension plan. The following pension-related data were available…
A: Journal entries are to be reported to show the primary effect of transactions on account books of an…
Q: The following information is available for Ivanhoe Corporation's pension plan for the year 2020:…
A: Pension expense is the amount that a company charges to expense in relation to its responsibilities…
Q: Maytag Service Co. reported the following for its defined-benefit pension plan for 2021:…
A: A projected benefit obligation (PBO) is an actuarial measurement of what a company will need at the…
Q: Boey Company reported net income of $25,000 in 2021. It had the following amounts related to its…
A: Pension: A fixed sum of money, receivable in future or after the age of retirement, which the…
Q: The following information relates to Black Corporation's defined benefit pension plan during the…
A: Pension plan refers to a plan in which employer make contribution for the employee’s future life…
Q: The following information relates to the defined benefit pension plan of ABC Company for the year…
A: RECONCILITION OF PLAN ASSETS AND DEFINED BENEFIR OBLIGATION (DBO) (AMT IN Php) PARTICULARS…
Q: The following information pertains to Qdobe Corporation’s defined benefit pension plan for 2020.…
A: Actuarial loss on PBO incurred during the year is not to be included in current year pension expense…
Q: Gingrich Importers provides the following pension plan information. Fair value of pension plan…
A: Pension plan: Pension plan is the plan devised by corporations to pay the employees an income after…
Q: Calculate the pension asset/liability to be recorded at December 31, 2021.
A: Pension Liability: It is difference between the amount due to employees who is retired and the…
Q: Splish Corporation has the following balances at December 31, 2020. Projected benefit obligation…
A: Private pension plan: A fixed sum of money, receivable in future or after the age of retirement,…
Q: Sarasota Importers provides the following pension plan information. Fair value of pension plan…
A: Plan assets are the assets/investments held by a long-term employee benefit fund for the purpose of…
Q: The following information is available for the pension plan of Sunland Company for the year 2020.…
A: Total pension expenses include service cost, interest cost, actual return on plan assets, and…
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: Fajardo Company provided the following pension plan information: Projected benefit obligation –…
A: Expected return on plan assets = Fair value of plan asset x Discount rate = 2,800,000 x 10% =…
Q: On January 1, 2021, Dynamax Company had the following balances in its memorandum records: Fair value…
A: SOLUTION- COMPREHENSIVE INCOME INCLUDES REGULAR INCOME AND OTHER COMPREHENSIVE INCOME , WHICH…
Q: Presented below is information related to the pension plan of Ivanhoe Inc. for the year 2021. 1.…
A: Given the following information: Service cost related to pension expense: $233,000 Projected…
Q: A company had the following information concerning the operation of the company's defined-benefit…
A: Pension expense is the amount which is charged by as expense by the business which is related to the…
Q: The actuary for the pension plan of Buffalo Inc. calculated the following net gains and losses.…
A: Given that No.of employees = 400 Total service year participating employees = 4400
Under the defined-benefit pension plan for a company, the expected return on plan assets is $124,000 and actual return on plan assets is $269,000 in 2021. To record the unexpected gain/loss due to asset returns, the company will (enter 1, 2, 3, or 4 that represents the correct answer):
- Debit Other Comprehensive Income-Gain/Loss
- Credit Pension Expense
- Debit Pension Expense
- Debit Plan Assets
Step by step
Solved in 2 steps
- Under a defined-benefit plan, a company has an unexpected gain of $902,000 due to plan asset returns. To record this gain, the company will debit Pension Expense $902,000. credit Pension Expense $902,000. debit Other Comprehensive Income – Gain/Loss $902,000. debit Pension Asset/Liability $902,000.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 OOThe following information relates to the pension plan for the employees of Cullumber Co.: Accum. benefit obligation Projected benefit obligation Fair value of plan assets AOCI - net (gain) or loss Settlement rate (for year) Expected rate of return (for year) O $665200 gain. O $282200 loss. 1/1/20 $110600 gain. $272400 gain. $8140000 8665000 7825000 -0- $ 12/31/20 8560000 9358000 9820000 (1402000 ) 11% 8% 12/31/21 $ 11500000 12907000 10954000 (1570000 ) 11% Cullumber estimates that the average remaining service life is 16 years. Cullumber's contribution was $1213000 in 2021 and benefits paid were $877000. The unexpected gain or loss on plan assets in 2021 is 7%
- Crane Syrups Company provides the following pension plan information: Fair value of pension plan assets, January 1, 2025 Fair value of pension plan assets, December 31, 2025 Contributions to the plan in 2025 Benefits paid retirees in 2025 $1,215,000 1,424,000 157,000 204,000 From the data above, compute the actual return on the plan assets for 2025. Actual return on plan assets for 2025 $The following data are for the pension plan for the employees of Carla Vista Company. Accumulated benefit obligation Projected benefit obligation Plan assets (at fair value) AOCL - net loss Settlement rate (for year) Expected rate of return (for year) 1/1/20 $5200000 $540000. $344000. $410000. $444000. 5430000 4610000 The actual return on plan assets in 2021 was 12/31/20 $ 5300000 5710000 6220000 956000 11% 9% 12/31/21 $6830000 7650000 6760000 1120000 9% Carla Vista's contribution was $860000 in 2021 and benefits paid were $764000. Carla Vista estimates that the average remaining service life is 15 years. 8%Sandhill Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2025, the following balances relate to this plan. Plan assets Projected benefit obligation Pension asset/lability Accumulated OCI (PSC) (a) As a result of the operation of the plan during 2025, the following additional data are provided by the actuary. Service cost Settlement rate, 9% Actual return on plan assets Amortization of prior service cost Expected returson plan assets Unexpected loss from change in projected benefit obligation due to change in actuarial predictions Contributions Benentspaid retirees items Balance, Jan 1, 2025 Service cost $496,400 610,800 interest cost 114400 Actual return 98,000 Dr. Unexpected gain Using the data above, compute pension expense for Sandhill. for the year 2025 by preparing a pension worksheet. (Enter all amounts as positive.) $90.900 54,700 18.300 51.600 76.600 103.700 85,200 Annual Pension Expense C Cath SUPPORT
- rane importers provides the following pension plan Fair value of pension plan assets, January 1, 2025 Fair value of pension plan assets, December 31, 2025 Contributions to the plan in 2025 Benefits paid retirees in 2025 Tormation. Actual return on plan assets for 2025 $ $2,575,000 2,914,000 299,000 366,000 From the data above, compute the actual return on the plan assets for 2025.The following data are for the pension plan for the employees of Blossom Company. Accumulated benefit obligation Projected benefit obligation Plan assets (at fair value) AOCL - net loss Settlement rate (for year) Expected rate of return (for year) 1/1/25 $5010000 5410000 O $610000. $400000. O $520000. O $320000. 4610000 The actual return on plan assets in 2026 was 0 12/31/25 $5210000 5610000 6010000 970000 9% 7% 12/31/26 $6810000 7410000 6620000 1010000 8% Blossom's contribution was $850000 in 2026 and benefits paid were $760000. Blossom estimates that the average remaining service life is 15 years. 6%Kingbird Company provides the following selected information related to its defined benefit pension plan for 2020. Pension asset/liability (January 1) Accumulated benefit obligation (December 31) Actual and expected return on plan assets Contributions (funding) in 2020 Fair value of plan assets (December 31) Settlement rate Projected benefit obligation (January 1) Service cost (a) Your answer is correct. Compute pension expense. Pension expense for 2020 $ Account Titles and Explanation Pension Expense Pension Asset/Liability $27,200 Cr. 403,300 11,000 150,600 794,200 Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2020. Preparation of a pension worksheet is not required. Benefits paid in 2020 were $37,100. (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 0 for the amounts.) Cash 10 % 696,900 79,420 138110…
- The following information is available for the pension pan of Ivanhoe Company for the year 2020. Actual and expected return on plan assets Benefits paid to retirees Contributions (funding) Interest/discount rate Prior service cost amortization Projected benefit obligation, January 1, 2020 Service cost (a) Your answer is correct. Compute pension expense for the year 2020. Pension expense for 2020 eTextbook and Medial List of Accounts $ $13.800 36,600 88,000 11 % 7,900 502,000 59,000 108320The following information relates to the pension plan for the employees of Blossom Company: Accum. benefit obligation Projected benefit obligation Fair value of plan assets AOCI - net (gain) or loss Settlement rate (for year) Expected rate of return (for year) 1/1/25 $7940000 8465000 7625000 O $26250. O $17456. O $20238. O $14188. 0 12/31/25 $8360000 9158000 9620000 (1382000) 11% 8% 12/31/26 $11300000 12707000 10754000 (1550000) 11% 7% Blossom estimates that the average remaining service life is 16 years. Blossom's contribution was $1323000 in 2026 and benefits paid were $987000. The amount of AOCI (net gain) amortized in 2026 isSandhill Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2025 and 2026. Projected benefit obligation, January 1 Plan assets (fair value and market-related value), January 1 Pension asset/liability, January 1 Prior service cost, January 1 Service cost Settlement rate Expected rate of return Actual return on plan assets Amortization of prior service cost Annual contributions Benefits paid retirees Increase in projected benefit obligation due to changes in actuarial assumptions Accumulated benefit obligation at December 31 Average service life of all employees Vested benefit obligation at Decem -31 (a1) 2025 Amortization of the loss $ $596,000 411,600 184,400 Cr. 161,400 40,300 10% 10% 35,800 69,500 97,300 31,200 87,100 720,200 Calculate the amortization of the loss (2026) using the corridor approach. 2026 $58,800 10% 10% 61,100 50,500 80,500 53,900 0 792,000 20 years 463,600
