Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN: 9781337788281
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
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Question
Chapter 19, Problem 1E
1.
To determine
Ascertain the amount of pension expenses of Company B for 2019 and prepare necessary
2.
To determine
Describe the way in which the B Company’s
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On December 31, 2019, Robey Company accumulated the following information for 2019 in regard to its defined benefit pension plan:
Service cost
$95,610
Interest cost on projected benefit obligation
11,810
Expected return on plan assets
11,050
Amortization of prior service cost
1,950
On its December 31, 2018, balance sheet, Robey had reported an accrued/prepaid pension cost liability of $14,790.
Required:
1.
Compute the amount of Robey’s pension expense for 2019.
2.
Prepare all the journal entries related to Robey’s pension plan for 2019 if it funds the pension plan in the amount of (a) $98,320, (b) $97,290, and (c) $102,670.
3.
Next Level Assuming Robey’s beginning 2019 Accumulated Other Comprehensive Income: Prior Service Cost balance was $57,370 what would be its ending balance?
4.
Next Level How much would Robey need to fund its pension plan for 2019 in order to report an accrued/ prepaid pension cost asset of $4,780 at the end of 2019?
Pharoah Company adopts acceptable accounting for its defined benefit pension plan on January 1, 2019, with the following beginning
balances: plan assets $199,200; projected benefit obligation $248,000. 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, 1/1/20)
Amortization of prior service cost
Change in actuarial assumptions establishes
a December 31, 2021, projected benefit obligation of:
2019
$16,200
10 %
18,200
16,200
13,700
2020
$19,000
10 %
21,990
40,200
16,100
161,100
54,000
2021
$26,200
10 %
23,900
48,300
20,700
42,300
511,800
On December 31, 2019, Johnson Company accumulated the following information for 2019 in regard to its defined benefit pension plan:
Service cost
$113,230
Interest cost on projected benefit obligation
11,970
Expected return on plan assets
11,600
Amortization of prior service cost
2,020
On its December 31, 2018, balance sheet, Johnson had reported an accrued/prepaid pension cost liability of $12,880.
Required:
1.
Compute the amount of Johnson’s pension expense for 2019.
2.
Prepare all the journal entries related to Johnson’s pension plan for 2019 if it funds the pension plan in the amount of (a) $115,620, (b) $114,620, and (c) $119,430.
3.
Next Level Assuming Johnson’s beginning 2019 Accumulated Other Comprehensive Income: Prior Service Cost balance was $60,150 what would be its ending balance?
4.
Next Level How much would Johnson need to fund its pension plan for 2019 in order to report an accrued/ prepaid pension cost asset of $5,120 at the end of 2019?
Chapter 19 Solutions
Intermediate Accounting: Reporting And Analysis
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 - Refer to the information provided in E19-13....Ch. 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. 9C
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