Question
In: Accounting
P20.1 (LO2,4,5) (2-Year Worksheet) On January I, 2019, Harrington SA has the following defined benefit pension'...
P20.1 (LO2,4,5) (2-Year Worksheet) On January I, 2019, Harrington SA has the following defined benefit pension' plan balances.
Defined Benefit Obligation €4,500,000
Fair Value of plan assets 4,200,000
The interest rate applicable to the plan is 10%. On January 1, 2020, the company amends its pension agreement so that past service costs of €500,000 are created. Other data related to the pension plan are as follows.
| 2019 | 2020 | |
| Service Cost | 150,000 | 180,000 |
| Contributions to the plan | 240,000 | 285,000 |
| Benefits paid | 200,000 | 280,000 |
| Actual Return on plan assets | 420,000 | 260,000 |
Instructions
a. Prepare a pension worksheet for the pension plan for 2019 and 2020.
b. For 2020, prepare the journal entry to record pension-related amounts.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
On January 1, 2020, Harrington Company has the following defined benefit pension plan balances. Projected benefit...
On January 1, 2020, Harrington Company has the following defined
benefit pension plan balances.
Projected benefit obligation
$4,500,000
Fair value of plan assets
4,200,000
The interest (settlement) rate applicable to the plan is 10%. On
January 1, 2021, the company amends its pension agreement so that
prior service costs of $500,000 are created. Other data related to
the pension plan are as follows.
2020
2021
Service cost
$150,000
$180,000
Prior service cost amortization
0
90,000
Contributions (funding) to the plan...
P20.8 (LO2,4,5) (Comprehensive 2-Year Worksheet) Lemke SA sponsors a defined benefit pension plan for its employees....
P20.8 (LO2,4,5) (Comprehensive 2-Year Worksheet) Lemke SA
sponsors a defined benefit pension plan for its employees. The
following data relate to the operation of the plan for the years
2019 and 2020.
2019
2020
Defined benefit obligation, Jan1
600,000
Plan Assets(fair value), Jan 1
410,000
Pension asset/liability, Jan 1
190,000
Service Cost
40,000
59,000
Discount(interest)rate
10%
10%
Actual return on plan assets
36,000
61,000
Annual Contributions
97,000
81,000
Benefits paid retires
31,500
54,000
Increase in defined benefit obligation due to...
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1, 2019, the company had a Projected Benefit Obligation (PBO) of
$80 million and Plan Assets of $75 million. The beginning balance
of Prior Service Cost – AOCI is $2.5 million and the Net Gain –
AOCI beginning balance is $1.2 million (2019 amortization: $.14
million).
The following data relates to the plan for the company’s current
fiscal year, ended December 31, 2019.
$’s in millions Actual Return...
The Royal Corp has a defined benefit pension plan. As of January 1, 2019, the company...
The Royal Corp has a defined benefit pension plan. As of January
1, 2019, the company had a Projected Benefit Obligation (PBO) of
$80 million and Plan Assets of $75 million. The beginning balance
of Prior Service Cost – AOCI is $2.5 million and the Net Gain –
AOCI beginning balance is $1.2 million (2019 amortization: $.14
million).
The following data relates to the plan for the company’s current
fiscal year, ended December 31, 2019.
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On January 1, 2019, a company's defined benefit pension plan had
a projected benefit obligation (PBO) of $380,000. The fair value of
its pension plan assets on January 1 was $350,000. During 2019, the
company contributed $50,000 to the pension plan and paid pension
benefits to retirees in the amount of $70,000. The settlement rate
for the pension plan for 2019 was 12%. Service cost for the year
was estimated to be $109,000. The expected rate of return on
pension...
On January 1, 2020, Ivanhoe Company has the following defined benefit pension plan balances. Projected benefit...
On January 1, 2020, Ivanhoe Company has the following defined
benefit pension plan balances.
Projected benefit obligation
$4,420,000
Fair value of plan assets
4,260,000
The interest (settlement) rate applicable to the plan is 10%. On
January 1, 2021, the company amends its pension agreement so that
prior service costs of $506,000 are created. Other data related to
the pension plan are as follows.
2020
2021
Service cost
$151,000
$176,000
Prior service cost amortization
0
92,000
Contributions (funding) to the plan...
On January 1, 2020, Sage Company has the following defined benefit pension plan balances. Projected benefit...
On January 1, 2020, Sage Company has the following defined
benefit pension plan balances.
Projected benefit obligation$4,571,000
Fair value of plan assets4,210,000
The interest (settlement) rate applicable to the plan is 10%. On
January 1, 2021, the company amends its pension agreement so that
prior service costs of $492,000 are created. Other data related to
the pension plan are as follows.
2020
2021
Service cost
$152,000 $179,000
Prior service cost amortization
0 89,000
Contributions (funding) to the plan
236,000 285,000...
On January 1, 2017, Larkspur Company has the following defined benefit pension plan balances. Projected benefit...
On January 1, 2017, Larkspur Company has the following defined
benefit pension plan balances. Projected benefit obligation
$4,571,000 Fair value of plan assets 4,210,000 The interest
(settlement) rate applicable to the plan is 10%. On January 1,
2018, the company amends its pension agreement so that prior
service costs of $492,000 are created. Other data related to the
pension plan are as follows. 2017 2018 Service cost $152,000
$179,000 Prior service cost amortization 0 89,000 Contributions
(funding) to the plan...
On January 1, 2020, Tamarisk Company has the following defined benefit pension plan balances. Projected benefit...
On January 1, 2020, Tamarisk Company has the following defined
benefit pension plan balances.
Projected benefit obligation
$4,460,000
Fair value of plan assets
4,150,000
The interest (settlement) rate applicable to the plan is 10%. On
January 1, 2021, the company amends its pension agreement so that
prior service costs of $503,000 are created. Other data related to
the pension plan are as follows.
2020
2021
Service cost
$150,000
$182,000
Prior service cost amortization
0
92,000
Contributions (funding) to the plan...
Novak Co. has the following defined benefit pension plan balances on January 1, 2020. Projected benefit...
Novak Co. has the following defined benefit pension plan
balances on January 1, 2020.
Projected benefit obligation 4555000
Fair value of plan assets 4555000
The interest (settlement) rate applicable to the plan is 10%. On
January 1, 2021, the company amends its pension agreement so that
prior service costs of $599,000 are created. Other data related to
the pension plan are:
2020
2021
Service cost
149,000
170,000
Prior service cost amortization
0
91,000
Contributions (funding) to the plan
201,000
183,000...
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