Question
In: Accounting
Flint Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the...
Flint Corp. sponsors a defined benefit pension plan for its
employees. On January 1, 2020, the following balances relate to
this plan.
| Plan assets | $470,900 | ||
| Projected benefit obligation | 609,900 | ||
| Pension asset/liability | 139,000 | ||
| Accumulated OCI (PSC) | 99,800 | Dr. |
As a result of the operation of the plan during 2020, the following
additional data are provided by the actuary.
| Service cost | $93,800 | |
| Settlement rate, 10% | ||
| Actual return on plan assets | 54,500 | |
| Amortization of prior service cost | 19,800 | |
| Expected return on plan assets | 51,300 | |
| Unexpected loss from change in projected benefit
obligation, due to change in actuarial predictions |
74,300 | |
| Contributions | 99,100 | |
| Benefits paid retirees |
85,600 |
Using the data above, compute pension expense for Flint Corp. for the year 2020 by preparing a pension worksheet.
Prepare the journal entry for pension expense for 2020.
Solutions
ekkarill92 answered 3 years agoRelated Solutions
Teal Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the...
Teal Corp. sponsors a defined benefit pension plan for its
employees. On January 1, 2020, the following balances relate to
this plan.
Plan assets
$489,900
Projected benefit obligation
616,700
Pension asset/liability
126,800
Accumulated OCI (PSC)
95,600
Dr.
As a result of the operation of the plan during 2020, the following
additional data are provided by the actuary.
Service cost
$86,900
Settlement rate, 9%
Actual return on plan assets
57,100
Amortization of prior service cost
19,500
Expected return on plan assets...
Teal Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the...
Teal Corp. sponsors a defined benefit pension plan for its
employees. On January 1, 2020, the following balances relate to
this plan.
Plan assets
$489,900
Projected benefit obligation
616,700
Pension asset/liability
126,800
Accumulated OCI (PSC)
95,600
Dr.
As a result of the operation of the plan during 2020, the following
additional data are provided by the actuary.
Service cost
$86,900
Settlement rate, 9%
Actual return on plan assets
57,100
Amortization of prior service cost
19,500
Expected return on plan assets...
Bridgeport Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the...
Bridgeport Corp. sponsors a defined benefit pension plan for its
employees. On January 1, 2020, the following balances related to
this plan.
Plan assets (market-related value)
$536,000
Projected benefit obligation
652,000
Pension asset/liability
116,000
Cr.
Prior service cost
86,000
Net gain or loss (debit)
99,000
As a result of the operation of the plan during 2020, the actuary
provided the following additional data for 2020.
Service cost
$124,000
Settlement rate, 9%; expected return rate, 10%
Actual return on plan assets...
Bridgeport Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the...
Bridgeport Corp. sponsors a defined benefit pension plan for its
employees. On January 1, 2020, the following balances relate to
this plan.
Plan assets
$469,800
Projected benefit obligation
607,000
Pension asset/liability
137,200
Accumulated OCI (PSC)
97,100
Dr.
As a result of the operation of the plan during 2020, the following
additional data are provided by the actuary.
Service cost
$91,100
Settlement rate, 8%
Actual return on plan assets
54,400
Amortization of prior service cost
19,100
Expected return on plan assets...
Cullumber Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2021, the...
Cullumber Corp. sponsors a defined benefit pension plan for its
employees. On January 1, 2021, the following balances related to
this plan.
Plan assets (market-related value)
$270,400
Projected benefit obligation
342,400
Pension asset/liability
72,000
Cr.
Prior service cost
89,500
OCI—Loss
38,400
As a result of the operation of the plan during 2021, the actuary
provided the following additional data for 2021.
Service cost
$44,200
Actual return on plan assets
27,600
Amortization of prior service cost
11,900
Contributions
64,400
Benefits paid...
Pharoah Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2017, the...
Pharoah Corp. sponsors a defined benefit pension plan for its
employees. On January 1, 2017, the following balances relate to
this plan.
Plan assets $498,300
Projected benefit obligation 614,700
Pension asset/liability 116,400
Accumulated OCI (PSC) 96,900 Dr.
As a result of the operation of the plan during 2017, the
following additional data are provided by the actuary.
Service cost $92,500
Settlement rate, 9%
Actual return on plan assets 54,200
Amortization of prior service cost 18,100
Expected return on plan assets...
Scottsdale Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2017, the...
Scottsdale Corp. sponsors a defined benefit pension plan for its
employees. On January 1, 2017, the following balances relate to
this plan.
Plan assets $480,000
Projected benefit obligation 625,000
Accumulated OCI (PSC) 100,000 Dr.
Accumulated OCI (Gain/Loss) 85,000 Cr.
As a result of the operation of the plan during 2017, the
following additional data are provided by the actuary:
Service cost for 2017 $90,000
Settlement rate 9%
Actual return on plan assets in 2017 57,000
Expected return on plan assets...
Part 1) Melanie Vail Corp. sponsors a defined benefit pension plan for its employees. On January...
Part 1) Melanie Vail Corp. sponsors a defined benefit pension
plan for its employees. On January 1, 2017, the following balances
relate to this plan.
Plan assets
$480,000
Projected benefit obligation
625,000
Accumulated OCI (PSC)
100,000 Dr.
Accumulated OCI (Gain/Loss)
85,000 Cr.
As a result of the operation of the plan during 2017, the
following additional data are provided by the actuary:
Service cost for 2017
$90,000
Settlement rate
9%
Actual return on plan assets in 2017
57,000
Expected return...
Howard Corp. sponsors a defined-benefit pension plan for its employees. On January 1, 2011, the following...
Howard Corp. sponsors a defined-benefit pension plan for its
employees. On January 1, 2011, the following balances related to
this plan.
Plan assets (market-related value) $450,000
Projected benefit obligation 600,000
Pension asset/liability 150,000 Cr. Prior service cost 75,000
OCI – Loss 65,000 As a result of the operation of the plan during
2011, the actuary provided the following additional data at
December 31, 2011. Service cost for 2011 $ 75,000 Settlement rate
7% Actual return on plan assets in 2011...
Exercise 20-10 Nash Corp. sponsors a defined benefit pension plan for its employees. On January 1,...
Exercise 20-10
Nash Corp. sponsors a defined benefit pension plan for its
employees. On January 1, 2017, the following balances relate to
this plan.
Plan assets $477,500
Projected benefit obligation 609,400
Pension asset/liability 131,900
Accumulated OCI (PSC) 100,800 Dr.
As a result of the operation of the plan during 2017, the following
additional data are provided by the actuary.
Service cost $90,600
Settlement rate, 9%
Actual return on plan assets 56,600
Amortization of prior service cost 18,200
Expected return on...
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