Question
In: Accounting
Question: Katie Day Company adopts acceptable accounting for its defined benefit pension plan on January 1,......
Question: Katie Day Company adopts acceptable accounting for its defined benefit pension plan on January 1,... Katie Day Company adopts acceptable accounting for its defined benefit pension plan on January 1, 2011, with the following beginning balances: plan assets $200,000, projected benefit obligation $200,000. Other data relating to 3 years’ operation of the plan are as follows. 2011 2012 2013 $ 16,000 $19,000 $ 26,000 a) Annual service cost b) Settlement rate and expected rate of return c) Actual return on plan assets 17,000 21,900 24,000 d) Annual contribution e) Benefits paid 10% | 10% | 10% 16,000 40,000 48,000 14,00016,40021,000 Unrecognized prior service cost (plan amended 1/1/12) g) Amortization of unrecognized prior service cost h) Change in actuarial assum est.12/31/2013 proj. benefit of: 160,000 54,40041,600 520,000 Compute the amount of gain or loss to be amortized, if any during the year 2014. Assume that average expected years of service is 8 years.
Solutions
Expert Solution
The amount of gain or loss to be amortized, if any during the year 2014 = $421.25
refer below
ekkarill92 answered 1 year agoRelated Solutions
Blue Company adopts acceptable accounting for its defined benefit pension plan on January 1, 2019, with...
Blue Company adopts acceptable accounting for its defined
benefit pension plan on January 1, 2019, with the following
beginning balances: plan assets $203,100; projected benefit
obligation $252,000. Other data relating to 3 years’ operation of
the plan are as follows.
2019
2020
2021
Annual service cost
$15,800
$19,000
$26,200
Settlement rate and expected rate
of return
10
%
10
%
10
%
Actual return on plan assets
18,200
22,280
23,600
Annual funding (contributions)
15,800
39,400
47,600
Benefits paid
14,300
16,400...
Problem 20-2 Crane Company adopts acceptable accounting for its defined benefit pension plan on January 1,...
Problem 20-2
Crane Company adopts acceptable accounting for its defined
benefit pension plan on January 1, 2016, with the following
beginning balances: plan assets $201,400; projected benefit
obligation $245,000. Other data relating to 3 years’ operation of
the plan are as follows.
2016
2017
2018
Annual service cost
$15,800
$19,400
$26,100
Settlement rate and expected rate
of return
10
%
10
%
10
%
Actual return on plan assets
18,000
22,150
24,000
Annual funding (contributions)
15,800
40,000
47,500
Benefits paid...
Madoff Company sponsors a defined-benefit pension plan for its employees. On January 1, 2017, the following...
Madoff Company sponsors a defined-benefit pension plan for its
employees. On January 1, 2017, the following balances
related to this plan.
Plan assets (fair value) $650,000
Projected benefit obligation 675,000
Pension asset/liability 25,000 Cr.
Prior service cost 120,000
OCI – Loss 72,000
As a result of the operation of the plan during 2017, the actuary
provided the following additional data at Dec 31, 2017.
Service cost for 2017 $32,000
Actual return on plan assets in 2017 35,000
Amortization of prior...
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.
$’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.
$’s in millions Actual Return...
Pension Problem ABC Company had the following: The company adopts a pension plan on January 1,...
Pension Problem
ABC Company had the following:
The company adopts a pension plan on January 1, 2010. No
retroactive benefits were granted to employees.
The service cost for each year is 2010 $400,000; 2011 $420,000;
2012 $432,000.
The projected benefit obligation at the beginning of each year
is 2011 $400,000 and 2012 $840,000.
The discount rate is 4%.
The expected long-term rate of return on plan assets is 5%
which is also equal to the actual rate of return.
The...
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...
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...
BEST CO sponsors a defined benefit pension plan for its employees. On January 1, 2010, the...
BEST CO sponsors a defined benefit pension plan for its
employees. On January 1, 2010, the following balances relate to
this plan. GHS Plan assets 480,000 Defined benefit obligation
625,000 Pension asset/liability 45,000 Unrecognized past service
cost 100,000 As a result of the operation of the plan during 2010,
the following additional data are provided by the actuary. Service
cost for 2010 90,000 Discount rate, 9% Actual return on plan assets
in 2010 57,000 Amortization of past service cost 19,000...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- PART A A student wants to purchase an investment property that can generate sufficient cash flow...
- Complete the MPS record below for a single item. (Enter your responses as integers. A response...
- We can utilize potentially high bandwidth in one of the two ways: broadband and baseband modes....
- The Pinewood Furniture Company produces chairs and tables from two resources, labor and wood. The company...
- Wasabi Pte Ltd makes separate journal entries for all cost accounting-related activities. It uses a standard...
- Nordic Industrial Park: bridging distance across international markets When a resource-constrained firm enters a high-distance market,...
- Question d) Write the regular expression statement that will match a string that starts with the...
ADVERTISEMENT