Intermediate Accounting: Reporting and Analysis (Looseleaf)
2nd Edition
ISBN: 9781285453859
Author: WAHLEN
Publisher: Cengage
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Chapter 19, Problem 1E
1.
To determine
Ascertain the amount of pension expenses of Company B for 2016 and prepare necessary
2.
To determine
Describe the way in which the B Company’s
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On December 31, 2016, Robey Company accumulated the following information for 2016 in regard to its defined benefit pension plan:
Service cost
$113,500
Interest cost on projected benefit obligation
11,390
Expected return on plan assets
11,960
Amortization of prior service cost
1,900
On its December 31, 2015, balance sheet, Robey had reported an accrued/prepaid pension cost liability of $12,900.
Required:
1. Compute the amount of Robey's pension expense for 2016.
2. Prepare all the journal entries related to Robey's pension plan for 2016 if it funds the pension plan in the amount of (a) $114,830, (b) $113,840,
and (c) $118,870.
3. Next Level Assuming Robey's beginning 2016 Accumulated Other Comprehensive Income: Prior Service Cost balance was $57,480 what
would be its ending balance?
4. Next Level How much would Robey need to fund its pension plan for 2016 in order to report an accrued/ prepaid pension cost asset of $5,460
at the end of 2016?
Hudson Company's actuary has provided the following information concerning the company's defined benefit pension plan at the end of 2016:
Fair value of plan assets (1/1/2016)
$350,000
Actual projected benefit obligation (1/1/2016)
360,000
Expected projected benefit obligation (1/1/2016)
424,000
Average remaining service life of employees
10 years
The difference between the actual and expected projected benefit obligation first occurred in 2015.
Compute the amount of the net gain or loss to include in Hudson's pension expense for 2016.
Carla Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2017.
1.
The actuarial present value of future benefits earned by employees for services rendered in 2017 amounted to $82,000.
2.
The company’s funding policy requires a contribution to the pension trustee amounting to $151,000 for 2017.
3.
As of January 1, 2017, the company had a projected benefit obligation of $1,603,000 and a debit balance of $429,000 in accumulated OCI (PSC). The fair value of pension plan assets amounted to $1,373,000 at the beginning of the year. The actual and expected return on plan assets was $63,000. The settlement rate was 5%. No gains or losses occurred in 2017 and no benefits were paid.
4.
Amortization of prior service cost was $85,800 in 2017. Amortization of net gain or loss was not required in 2017.
Prepare the journal entry or entries to record pension expense and the employer’s contribution…
Chapter 19 Solutions
Intermediate Accounting: Reporting and Analysis (Looseleaf)
Ch. 19 - Prob. 1GICh. 19 - Prob. 2GICh. 19 - Prob. 3GICh. 19 - Prob. 4GICh. 19 - Prob. 5GICh. 19 - Prob. 6GICh. 19 - Prob. 7GICh. 19 - Prob. 8GICh. 19 - Prob. 9GICh. 19 - Prob. 10GI
Ch. 19 - Prob. 11GICh. 19 - Prob. 12GICh. 19 - Prob. 13GICh. 19 - Prob. 14GICh. 19 - Prob. 15GICh. 19 - Prob. 16GICh. 19 - Prob. 17GICh. 19 - Prob. 18GICh. 19 - Prob. 19GICh. 19 - Prob. 20GICh. 19 - Prob. 21GICh. 19 - Prob. 22GICh. 19 - Prob. 23GICh. 19 - The actuarial present value of all the benefits...Ch. 19 - Prob. 2MCCh. 19 - Prob. 3MCCh. 19 - Prob. 4MCCh. 19 - Prob. 5MCCh. 19 - Prob. 6MCCh. 19 - Which of the following is not a component of...Ch. 19 - Prob. 8MCCh. 19 - Prob. 9MCCh. 19 - Prob. 10MCCh. 19 - Prob. 1RECh. 19 - Prob. 2RECh. 19 - Pinecone Company has plan assets of 500,000 at the...Ch. 19 - Prob. 4RECh. 19 - Prob. 5RECh. 19 - Prob. 6RECh. 19 - Prob. 7RECh. 19 - Prob. 8RECh. 19 - Given the following information for Tyler Companys...Ch. 19 - At the beginning of Year 1, Cactus Company has...Ch. 19 - Prob. 11RECh. 19 - Prob. 1ECh. 19 - Prob. 2ECh. 19 - Prob. 3ECh. 19 - Prob. 4ECh. 19 - Prob. 5ECh. 19 - Prob. 6ECh. 19 - Prob. 7ECh. 19 - Prob. 8ECh. 19 - Prob. 9ECh. 19 - Prob. 10ECh. 19 - Prob. 11ECh. 19 - Prob. 12ECh. 19 - Prob. 13ECh. 19 - Prob. 14ECh. 19 - Prob. 15ECh. 19 - Prob. 16ECh. 19 - Prob. 1PCh. 19 - Prob. 2PCh. 19 - Prob. 3PCh. 19 - Prob. 4PCh. 19 - Prob. 5PCh. 19 - Prob. 6PCh. 19 - Prob. 7PCh. 19 - Prob. 8PCh. 19 - Prob. 9PCh. 19 - Prob. 10PCh. 19 - Prob. 11PCh. 19 - Prob. 12PCh. 19 - Prob. 1CCh. 19 - Prob. 2CCh. 19 - Prob. 3CCh. 19 - Prob. 4CCh. 19 - Prob. 5CCh. 19 - Prob. 6CCh. 19 - Prob. 7CCh. 19 - Prob. 8CCh. 19 - Prob. 10C
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- Given the following information for Tyler Companys pension plan at the beginning of the year, calculate the corridor, excess net loss (gain), and amortized net loss (gain). Assume an average remaining service life of 15 years.arrow_forwardCarla Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2017. 1. The actuarial present value of future benefits earned by employees for services rendered in 2017 amounted to $82,000. 2. The company’s funding policy requires a contribution to the pension trustee amounting to $151,000 for 2017. 3. As of January 1, 2017, the company had a projected benefit obligation of $1,603,000 and a debit balance of $429,000 in accumulated OCI (PSC). The fair value of pension plan assets amounted to $1,373,000 at the beginning of the year. The actual and expected return on plan assets was $63,000. The settlement rate was 5%. No gains or losses occurred in 2017 and no benefits were paid. 4. Amortization of prior service cost was $85,800 in 2017. Amortization of net gain or loss was not required in 2017. (a) Correct answer icon Your answer is correct. Determine the amounts of…arrow_forwardCarla Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2017. 1. The actuarial present value of future benefits earned by employees for services rendered in 2017 amounted to $82,000. 2. The company’s funding policy requires a contribution to the pension trustee amounting to $151,000 for 2017. 3. As of January 1, 2017, the company had a projected benefit obligation of $1,603,000 and a debit balance of $429,000 in accumulated OCI (PSC). The fair value of pension plan assets amounted to $1,373,000 at the beginning of the year. The actual and expected return on plan assets was $63,000. The settlement rate was 5%. No gains or losses occurred in 2017 and no benefits were paid. 4. Amortization of prior service cost was $85,800 in 2017. Amortization of net gain or loss was not required in 2017. (a) Determine the amounts of the components of pension expense that should be…arrow_forward
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