Question
In: Accounting
Pharoah Corporation provides the following information about its defined benefit pension plan for the year 2020:...
Pharoah Corporation provides the following information about its
defined benefit pension plan for the year 2020:
| Current service cost | $225,600 | ||
| Contribution to the plan | 263,100 | ||
| Past service cost, effective December 31, 2020 | 25,600 | ||
| Actual return on plan assets | 160,000 | ||
| Benefits paid | 106,000 | ||
| Net defined benefit liability at January 1, 2020 | 400,600 | ||
| Plan assets at January 1, 2020 | 1,600,000 | ||
| Defined benefit obligation at January 1, 2020 | 2,000,600 | ||
| Interest/discount rate on the DBO and plan assets | 10% |
Pharoah follows IFRS.
QUESTIONS:
A) Prepare a continuity schedule for 2020 for the defined benefit obligation.
B) Prepare a continuity schedule for 2020 for the plan assets.
C) Calculate pension expense for the year 2020.
D) Prepare all pension journal entries recorded by Pharoah in 2020.
E) What pension amount will appear on Pharoah’s SFP at December 31, 2020?
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Blossom Corporation provides the following information about its defined benefit pension plan for the year 2020:...
Blossom Corporation provides the following information about its
defined benefit pension plan for the year 2020:
Current service cost
$225,100
Contribution to the plan
262,600
Past service cost, effective December 31, 2020
25,100
Actual return on plan assets
159,000
Benefits paid
101,000
Net defined benefit liability at January 1, 2020
412,000
Plan assets at January 1, 2020
1,590,000
Defined benefit obligation at January 1, 2020
2,002,000
Interest/discount rate on the DBO and plan assets
10%
Blossom follows IRFS.
Xyz Company provides the following information about its defined benefit pension plan for the year 2020....
Xyz Company provides the following information about its defined
benefit pension plan for the year 2020.
Service cost
$91,600
Contribution to the plan
104,400
Prior service cost amortization
10,800
Actual and expected return on plan assets
64,600
Benefits paid
40,300
Plan assets at January 1, 2020
650,000
Projected benefit obligation at January 1, 2020
692,000
Accumulated OCI (PSC) at January 1, 2020
150,000
Interest/discount (settlement) rate
11
%
Prepare a pension worksheet inserting January 1, 2020,
balances, showing December 31,...
Pina Company provides the following information about its defined benefit pension plan for the year 2020....
Pina Company provides the following information about its
defined benefit pension plan for the year 2020.
Service cost
$90,900
Contribution to the plan
103,000
Prior service cost amortization
9,300
Actual and expected return on plan assets
63,200
Benefits paid
39,800
Plan assets at January 1, 2020
648,600
Projected benefit obligation at January 1, 2020
706,600
Accumulated OCI (PSC) at January 1, 2020
148,800
Interest/discount (settlement) rate
10
%
Prepare the journal entry recording pension expense.
(Credit account titles are automatically...
Vaughn Company provides the following information about its defined benefit pension plan for the year 2017....
Vaughn Company provides the following information about its
defined benefit pension plan for the year 2017.
Service cost
$88,500
Contribution to the plan
107,100
Prior service cost amortization
10,600
Actual and expected return on plan assets
63,100
Benefits paid
40,800
Plan assets at January 1, 2017
648,000
Projected benefit obligation at January 1, 2017
688,100
Accumulated OCI (PSC) at January 1, 2017
148,600
Interest/discount (settlement) rate
11
%
Prepare a pension worksheet inserting January 1, 2017, balances,
showing December 31,...
Ayayai Company provides the following information about its defined benefit pension plan for the year 2017....
Ayayai Company provides the following information about its
defined benefit pension plan for the year 2017.
Service cost
$91,200
Contribution to the plan
104,700
Prior service cost amortization
9,800
Actual and expected return on plan assets
62,800
Benefits paid
40,500
Plan assets at January 1, 2017
632,600
Projected benefit obligation at January 1, 2017
686,700
Accumulated OCI (PSC) at January 1, 2017
152,100
Interest/discount (settlement) rate
9
%
Requirements:
Using Excel prepare a pension worksheet inserting January 1,
2017, balances,...
Ayayai Company provides the following information about its defined benefit pension plan for the year 2017....
Ayayai Company provides the following information about its
defined benefit pension plan for the year 2017.
Service cost
$91,200
Contribution to the plan
104,700
Prior service cost amortization
9,800
Actual and expected return on plan assets
62,800
Benefits paid
40,500
Plan assets at January 1, 2017
632,600
Projected benefit obligation at January 1, 2017
686,700
Accumulated OCI (PSC) at January 1, 2017
152,100
Interest/discount (settlement) rate
9
%
Requirements:
Using Excel prepare a pension worksheet inserting January 1,
2017, balances,...
Riverbed Company provides the following information about its defined benefit pension plan for the year 2017....
Riverbed Company provides the following information about its
defined benefit pension plan for the year 2017.
Service cost
$89,800
Contribution to the plan
107,000
Prior service cost amortization
10,700
Actual and expected return on plan assets
65,200
Benefits paid
40,100
Plan assets at January 1, 2017
647,500
Projected benefit obligation at January 1, 2017
707,800
Accumulated OCI (PSC) at January 1, 2017
147,500
Interest/discount (settlement) rate
9
%
Prepare a pension worksheet inserting January 1, 2017, balances,
showing December 31,...
Question 10 Sheridan Company provides the following information about its defined benefit pension plan for the...
Question 10
Sheridan Company provides the following information about its
defined benefit pension plan for the year 2020.
Service cost
$89,800
Contribution to the plan
107,000
Prior service cost amortization
10,700
Actual and expected return on plan assets
65,200
Benefits paid
40,100
Plan assets at January 1, 2020
647,500
Projected benefit obligation at January 1, 2020
707,800
Accumulated OCI (PSC) at January 1, 2020
147,500
Interest/discount (settlement) rate
9
%
Prepare a pension worksheet inserting January 1, 2020, balances,
showing...
Question 10 Sheridan Company provides the following information about its defined benefit pension plan for the...
Question 10
Sheridan Company provides the following information about its
defined benefit pension plan for the year 2020.
Service cost
$89,800
Contribution to the plan
107,000
Prior service cost amortization
10,700
Actual and expected return on plan assets
65,200
Benefits paid
40,100
Plan assets at January 1, 2020
647,500
Projected benefit obligation at January 1, 2020
707,800
Accumulated OCI (PSC) at January 1, 2020
147,500
Interest/discount (settlement) rate
9
%
1. Prepare a pension worksheet inserting January 1, 2020,
balances,...
Pharoah Corp. reports the following information (in hundreds of thousands of dollars) to you about its defined benefit pension plan for 2017
Pharoah Corp. reports the following information (in hundreds of thousands of dollars) to you about its defined benefit pension plan for 2017:
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