Chapter 20, Problem 12ICA

(Computation of Pension Expense) Veldre Company provides the following information about its defined benefit pension plan for the year 2017. Check the below image for following information. InstructionsCompute the pension expense for the year 2017.

(Pension Worksheet) Hanson Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2017, the following balances related to this plan. Check the below image for information InstructionsUsing the preceding data, compute pension expense for Hanson Corp. for the year 2017 by preparing a pension worksheet that shows the journal entry for pension expense. Use the market-related asset value to compute the expected return and for corridor amortization.

(Pension Expense, Journal Entries for 2 Years) Gordon Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2017 and 2018. Check the below image for pension plan. Instructions(a) Compute pension expense for 2017 and 2018.(b) Prepare the journal entries to record the pension expense and the company’s funding of the pension plan for both years.

Happy Steel Corporation has provided the following information regarding their defined benefit pension plan for the year 2018: 3 Current service cost Contribution to the plan Past service cost, effective December 31, 2018 Actual return on plan assets Benefits paid Net defined benefit liability at January 1, 2018 Plan assets at January 1, 2018 Defined benefit obligation at January 1, 2018 Interest/discount rate on the DBO and plan assets $ 235,000 262,500 50,000 160,000 100,000 400,000 1,600,000 2,000,000 10%

(Pension Expense, Journal Entries, Statement Presentation) Ferreri Company received the following selected information from its pension plan trustee concerning the operation of the company’s defined benefit pension planfor the year ended December 31, 2017. Check below image for information. The service cost component of pension expense for employee services rendered in the current year amounted to $77,000 and the amortization of prior service cost was $120,000. The company’s actual funding (contributions) of the plan in 2017 amounted to $250,000. The expected return on plan assets and the actual rate were both 10%; the interest/discount (settlement) rate was 10%. Accumulated other comprehensive income (PSC) had a balance of $1,200,000 on January 1, 2017. Assume no benefits paid in 2017.Instructions(a) Determine the amounts of the components of pension expense that should be recognized by the company in 2017.(b) Prepare the journal entry to record pension expense and the employer’s…

(Computation of Actual Return, Gains and Losses, Corridor Test, and Pension Expense) Erickson Company sponsors a defined benefit pension plan. The corporation’s actuary provides the following information about the plan. Check the below image for the information. Instructions(a) Compute the actual return on the plan assets in 2017.(b) Compute the amount of the other comprehensive income (G/L) as of December 31, 2017. (Assume the January 1, 2017, balance was zero.)(c) Compute the amount of net gain or loss amortization for 2017 (corridor approach).(d) Compute pension expense for 2017.

(Pension Expense, Journal Entries, Statement Presentation) Henning Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2017 in which no benefits were paid.1. The actuarial present value of future benefits earned by employees for services rendered in 2017 amounted to $56,000.2. The company’s funding policy requires a contribution to the pension trustee amounting to $145,000 for 2017.3. As of January 1, 2017, the company had a projected benefit obligation of $900,000, an accumulated benefit obligation of $800,000, and a debit balance of $400,000 in accumulated OCI (PSC). The fair value of pension plan assets amounted to $600,000 at the beginning of the year. The actual and expected return on plan assets was $54,000. The settlement rate was9%. No gains or losses occurred in 2017 and no benefits were paid.4. Amortization of prior service cost was $50,000 in 2017. Amortization of net gain or loss was not…

Actuary and trustee reports indicate the following changes in the PBO and plan assets of Douglas-Roberts Industries during 2021: Required:1. Determine Douglas-Roberts's pension expense for 2021.2. Prepare the appropriate journal entries to record the pension expense, to record any 2021 gains and losses, to record the cash contribution to plan assets and to record retiree benefits. Record annual pension expense. Record the change in plan assets. Record the change in the PBO. Record the cash contribution to plan assets. Record the retiree benefits paid.

The accounting staff of Wildhorse Inc. has prepared the following pension worksheet. Unfortunately, several entries in the worksheet are not readable. The company has asked your assistance in completing the worksheet and completing the accounting tasks related to the pension plan for 2021. (a)Determine the missing amounts in the 2021 pension worksheet, indicating whether the amounts are debits or credits.   Annual Pension Expense debit/ credit Cash debit/ credit OCI - Prior Service Cost debit/ credit OCI - Gain/Loss debit/ credit pension asset/liability debit/credit Projected benefit obligation debit/credit Plan Assets debit/credit Balance Jan 1, 2021                 1,190 Cr. 4,120   2,930   service cost $                   570       interest cost $                   326       actual return $                       422   unexpected gain 157           $               amortization of psc $       61                   contributions     1,190                   1,190…