Question
In: Accounting
21-Carolina Consulting Company has a defined benefit pension plan. The following pension-related data were available for...
21-Carolina Consulting Company has a defined benefit pension plan. The following pension-related data were available for the current calendar year:
|
PBO: |
||||
|
Balance, Jan. 1 |
$ |
237,000 |
||
|
Service cost |
38,000 |
|||
|
Interest cost (5% discount rate) |
11,850 |
|||
|
Gain from changes in actuarial assumptions in 2021 |
(4,700 |
) |
||
|
Benefits paid to retirees |
(17,000 |
) |
||
|
Balance, Dec. 31 |
$ |
265,150 |
||
|
Plan assets: |
||||
|
Balance, Jan.1 |
$ |
247,000 |
||
|
Actual return (expected return was $22,200) |
20,000 |
|||
|
Contributions |
32,000 |
|||
|
Benefits paid |
(17,000 |
) |
||
|
Balance, Dec. 31 |
$ |
282,000 |
||
|
ABO, Dec. 31 |
$ |
241,700 |
||
|
January 1, 2021, balances: |
||||
|
Prior service cost–AOCI (amortization $4,945/yr.) |
4,945 |
|||
|
Net gain–AOCI (amortization, if any, over 15 years) |
49,450 |
|||
There were no other relevant data.
Required:
1. Calculate the 2021 pension expense.
2. Prepare the 2021 journal entries to record pension expense and funding.
3. Prepare any journal entries to record any 2021 gains or losses.
don't ask for more information that the only thing we have
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Carolina Consulting Company has a defined benefit pension plan. The following pension-related data were available for...
Carolina Consulting Company has a defined benefit pension plan.
The following pension-related data were available for the current
calendar year:
PBO:
Balance, Jan. 1
$
242,000
Service cost
43,000
Interest cost (5% discount rate)
12,100
Gain from changes in actuarial assumptions in
2016
(5,200)
Benefits paid to retirees
(22,000)
Balance, Dec. 31
$
269,900
Plan assets:
Balance, Jan.1
$
252,000
Actual return (expected return was $22,700)
20,000
Contributions
37,000
Benefits paid
(22,000)
Balance, Dec. 31
$
287,000
January 1,...
Rand Medical has a defined benefit pension for which the following pension-related data were available on...
Rand Medical has a defined benefit pension for which the
following pension-related data were available on December 31, 2005
(the end of the company’s fiscal period): Projected benefit
obligation (PBO): Balance, January 1, 2005 $1,800,000 Service cost
369,000 Interest cost, discount rate, 10% 180,000 Losses (gains)
due to changes in actuarial assumptions in 2005 0 Pension benefits
paid (189,000) Balance, December 31, 2005 $2,160,000 Plan assets:
Balance, January 1, 2005 $ 1,350,000 Actual return on plan assets
135,000 (Expected return...
Shroff Company has a defined benefit pension plan. The following data relate to the operation of...
Shroff Company has a defined benefit pension plan. The following
data relate to the operation of the plan for 2019.
A. Prepare a pension worksheet and the journal entry to record
the pension expense for 2019.
Plan assets (fair value), 1/1 $29,000
Projected benefit obligation, 1/1 35,000
Prior service cost, 1/1 2,600
unrecognized net gain/loss (debit), 1/1 4,800
Service cost 2,500
Actual gain on plan assets 1,500
Amortization of prior service cost 300
Annual contributions 3,400
Benefits paid 2,700
Settlement...
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At year end, a company has a defined benefit pension plan with a
projected benefit obligation of $350,000; a net gain of $140,000
that was not previously recognized in net periodic pension cost;
and prior service cost of $210,000 that was not previously
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Carla Company sponsors a defined benefit pension plan for its employees. The following data relate to...
Carla Company sponsors a defined benefit pension plan for its
employees. The following data relate to the operation of the plan
for the year 2020 in which no benefits were paid.
1.
The actuarial present value of future benefits earned by
employees for services rendered in 2020 amounted to $55,500.
2.
The company’s funding policy requires a contribution to the
pension trustee amounting to $144,729 for 2020.
3.
As of January 1, 2020, the company had a projected benefit
obligation...
Carla Company sponsors a defined benefit pension plan for its employees. The following data relate to...
Carla Company sponsors a defined benefit pension plan for its
employees. The following data relate to the operation of the plan
for the year 2020 in which no benefits were paid.
1.
The actuarial present value of future benefits earned by
employees for services rendered in 2020 amounted to $56,200.
2.
The company’s funding policy requires a contribution to the
pension trustee amounting to $155,550 for 2020.
3.
As of January 1, 2020, the company had a projected benefit
obligation...
Sarasota Company sponsors a defined benefit pension plan for its employees. The following data relate to...
Sarasota Company sponsors a defined benefit pension plan for its
employees. The following data relate to the operation of the plan
for the year 2017 in which no benefits were paid. 1. The actuarial
present value of future benefits earned by employees for services
rendered in 2017 amounted to $55,700. 2. The company’s funding
policy requires a contribution to the pension trustee amounting to
$144,323 for 2017. 3. As of January 1, 2017, the company had a
projected benefit obligation...
What is the difference between a Defined Benefit Pension Plan and a Defined Contribution Pension Plan.?...
What is the difference between a Defined Benefit Pension Plan
and a Defined Contribution Pension Plan.? Why have Defined
Contribution Plans become more popular? Froman employees
perspective, which one do you think is more attractive?
Defined Benefit Plan Assignment The following information pertains to Company A's Year 5 defined benefit pension...
Defined Benefit Plan Assignment
The following information pertains to Company A's Year 5 defined
benefit pension plan:
January 1, Year 5, fair value of plan assets $100,000
January 1, Year 5, projected benefit obligation (PBO)
200,000 Contribution to the plan (made on December 31,
Year 5) 10,000 Benefits paid to employees (made on
December 31, Year 5) 15,000 December 31, Year 5, fair
value of plan assets 106,000 Discount
Rate 5% Expected...
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...
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