Question
In: Accounting
You are provided the following information: Actual return on plan assets 3% Average tenure of plan...
You are provided the following information:
|
3% |
|
20 |
|
308 |
|
500 |
|
4% |
|
5% |
|
600 |
|
4,200 |
|
40 |
|
5,600 |
|
680 |
Perform the calculation for each of the following:
- (15) Projected benefit obligation 12/31
- (15) Plan assets 12/31
- (15) Pension expense
- (5) The gain or loss to be recognized for pension expense for the current year applying the corridor approach.
Solutions
Expert Solution
| Current Year | ||||
| 1 | Pension Expense | $ 694 | ||
| 2 | Journal entry | |||
| Account title & Explaination | Current Year | |||
| Debit | Credit | |||
| Annual pension expense | 694 | |||
| OCI-Prior Service Cost | 2 | |||
| OCI-(Gain/Loss) | 86 | |||
| Cash | 500 | |||
| Net Pension Asset/liability | 278 | |||
| (To record pension expense and remeasurement loss recorded) | ||||
| 3 | Plan Asset | 500 | ||
| Cash | 500 | |||
| (To record the contribution made) | ||||
| Net Pension Asset/liability | 308 | |||
| Cash | 308 | |||
| (To record benefit paid) | ||||
| 4 | Net Pension Asset/(liability) | $ (1,678) | ||
| 5 | Projected benefit obligation | $ (6,196) | ||
| Plan Asset | $ 4,518 | |||
| Plan Surplus/(Deficit) | $ (1,678) | |||
| Pension Worksheet | ||||||||
| Items | Annual Pension Expense | Cash | OCI-Prior Service Cost | OCI-Gain/(Loss) | Pension Asset/liability | Projected benefit obligation | Plan Asset | |
| Balance, Jan 1, | $ - | $ - | $ 40 | $ 600 | $ (1,400) | $ (5,600) | $ 4,200 | |
| Past Service Cost created | $ - | $ - | $ - | $ - | $ - | $ - | $ - | |
| Service Cost | $ 680 | $ - | $ - | $ - | $ (680) | $ - | ||
| Interest Cost | $ 224 | $ - | $ - | $ - | $ (224) | $ - | ||
| Actual return | $ (126) | $ - | $ - | $ - | $ - | $ 126 | ||
| Unexpected gain/ loss | $ (84) | $ - | $ (84) | $ - | $ - | $ - | ||
| Amortisation of PSC | $ 2 | $ - | $ (2) | $ - | $ - | $ - | ||
| Amortisation of OCI-Gain/loss | $ (2) | $ - | $ - | $ (2) | $ - | $ - | ||
| Liability (increases)/decreases | $ - | $ - | $ - | $ - | $ - | |||
| Contributions | $ - | $ (500) | $ - | $ - | $ - | $ 500 | ||
| Benefits | $ - | $ - | $ - | $ - | $ 308 | $ (308) | ||
| $ - | $ - | $ - | $ - | $ - | $ - | |||
| Journal entry for | $ 694 | $ (500) | $ (2) | $ (86) | $ (278) | $ (596) | $ 318 | |
| Accumulated OCI dec 31, 2017 | $ - | $ - | $ 40 | $ 600 | $ - | $ - | $ - | |
| Balance, December 31, | $ - |
 ekkarill92 answered 2 years agoRelated SolutionsCalculating Average Operating Assets, Margin, Turnover, Return on Investment (ROI) Forchen, Inc., provided the following information...Calculating Average Operating Assets, Margin, Turnover, Return
on Investment (ROI)
Forchen, Inc., provided the following information for two of its
divisions for last year:
Small Appliances
Division
Cleaning Products
Division
Sales
$34,670,000
$34,800,000
Operating income
2,773,600
1,392,000
Operating assets, January 1
6,394,000
5,600,000
Operating assets, December 31
7,474,000
6,000,000
Required:
1. For the Small Appliances Division,
calculate:
a. Average operating assets
$
b. Margin
%
c. Turnover
d. Return on investment (ROI)
%
2. For the Cleaning Products Division,
calculate:...
Calculating Average Operating Assets, Margin, Turnover, Return on Investment (ROI) Forchen, Inc., provided the following information...Calculating Average Operating Assets, Margin, Turnover, Return
on Investment (ROI)
Forchen, Inc., provided the following information for two of its
divisions for last year:
Small Appliances
Division
Cleaning Products
Division
Sales
$34,670,000
$29,000,000
Operating income
2,773,600
1,160,000
Operating assets, January 1
6,394,000
5,600,000
Operating assets, December 31
7,474,000
6,000,000
Required:
1. For the Small Appliances Division,
calculate:
a. Average operating assets
$ fill in the blank 1
b. Margin
fill in the blank 2
%
c. Turnover
fill in the...
PBO estimate declined by 40 million Expected return on plan assets = 50 million Actual return...PBO estimate declined by 40 million
Expected return on plan assets = 50 million
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Problem 3.Refer to the following information on the return distribution for two assets in which you...Problem 3.Refer to the following information on
the return distribution for two assets in which you are
contemplating to invest in;
State of Economy
Probability that the state of economy occurs
Return if the state occurs
Asset AA
Return if the state occurs
Asset BB
BOOM
10%
40%
60%
AVERAGE
40%
20%
30%
BELOW AVERAGE
20%
20%
10%
POOR
30%
-20%
-30%
In addition to the above return distribution the two assets
(AA& BB) operate in different industries...
To convert actual to expected return on plan assets, what's the Worksheet adjustment needed in calculating...
To convert actual to expected return on plan assets, what's
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Pension data for the 2019 calendar year:Service cost$ 70,000
Actual return on plan assets 9%
Benefits to retirees 60,000 Expected return on plan assets
7%
Cash contributions 50,000 Settlement rate 6%
Fox's Beginning 2019 Info (December 31, 2018 balances):Plan
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Projected Benefit Obligation (PBO) 850,000
Accumulated net other comprehensive loss (average service...
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Elway Company provided the following income statement for the
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Sales
$749,320,000
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551,128,000
Contribution margin
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Less: Fixed expenses
198,192,000
Operating income
$0
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$
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Elway Company provided the following income statement for the
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$859,290,000
Less: Variable expenses
540,984,000
Contribution
margin
$318,306,000
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195,596,000
Operating income
$122,710,000
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$
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Fair value of plan
assets................................................
$5,000,000
Defined benefit
obligation............................................
6,200,000
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liability/asset account that should be shown on Leonardo’s December
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