Projected benefit obligation January 1 (before amendment) $600,000 Plan assets January 1 540,000 Pension Asset/Liability, January...

Projected benefit obligation January 1 (before amendment)	$600,000
Plan assets January 1	540,000
Pension Asset/Liability, January 1 – credit balance	60,000
Present value of increase in service benefits effective January 1 because of an amendment in the pension plan (not included in the projected benefit obligation above)	150,000
Settlement rate	8%
Contributions to the plan (funding)	50,000
Service Cost	70,000
Actual and expected return on plan assets	55,000
Benefits paid to retirees	30,000
Prior service cost amortization for the current year	15,000

D. Compute the balance of Other Comprehensive income – Prior Service Cost at December 31: $_______________

Solutions

Expert Solution

· Please do upvote if you found the answer useful.

· Feel free reach in the comment section in case of any clarification or queries.

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

On January 1, 2019, a company's defined benefit pension plan had a projected benefit obligation (PBO)...

On January 1, 2019, a company's defined benefit pension plan had a projected benefit obligation (PBO) of $380,000. The fair value of its pension plan assets on January 1 was $350,000. During 2019, the company contributed $50,000 to the pension plan and paid pension benefits to retirees in the amount of $70,000. The settlement rate for the pension plan for 2019 was 12%. Service cost for the year was estimated to be $109,000. The expected rate of return on pension...

At January 1, 2020, Headland Company had plan assets of $286,300 and a projected benefit obligation...

At January 1, 2020, Headland Company had plan assets of $286,300 and a projected benefit obligation of the same amount. During 2020, service cost was $28,400, the settlement rate was 10%, actual and expected return on plan assets were $25,500, contributions were $20,600, and benefits paid were $17,900. Prepare a pension worksheet for Headland Company for 2020.

At January 1, 2020, QWS Company had plan assets of $278,000 and a projected benefit obligation...

At January 1, 2020, QWS Company had plan assets of $278,000 and a projected benefit obligation of the same amount. During 2020, service cost was $28,200, the settlement rate was 10%, actual and expected return on plan assets were $26,100, contributions were $20,200, and benefits paid were $17,700. Prepare a pension worksheet for QWS Company for 2020. QWS COMPANY General Journal Entries Memo Record Items Pension Expense Cash Pension Asset/Liability Projected Benefit Obligation Plan Assets 1/1/20 Service cost Interest cost...

At year end, a company has a defined benefit pension plan with a projected benefit obligation...

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 recognized in net periodic pension cost. What amount should be reported in accumulated other comprehensive income related to the company's defined benefit pension plan at year end? A credit balance of $420,000. A debit balance of $420,000....

On January 1, 2021, Pharoah Co. has the following balances: Projected benefit obligation Fair value of plan assets

On January 1, 2021, Pharoah Co. has the following balances: Projected benefit obligation $4800000 Fair value of plan assets 4200000 The settlement rate is 10%. Other data related to the pension plan for 2021 are: Service cost $312000 Amortization of prior service costs 68000 Contributions 352000 Benefits paid 327000 Actual return on plan assets 344000 Amortization of net gain 23200 The balance of the projected benefit obligation at December 31, 2021 is $5265000. $5280000. $5100000. $5592000.

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...

On January 1, 2020, Sage Company has the following defined benefit pension plan balances. Projected benefit...

On January 1, 2020, Sage Company has the following defined benefit pension plan balances. Projected benefit obligation$4,571,000 Fair value of plan assets4,210,000 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 $492,000 are created. Other data related to the pension plan are as follows. 2020 2021 Service cost $152,000 $179,000 Prior service cost amortization 0 89,000 Contributions (funding) to the plan 236,000 285,000...

On January 1, 2017, Larkspur Company has the following defined benefit pension plan balances. Projected benefit...

On January 1, 2017, Larkspur Company has the following defined benefit pension plan balances. Projected benefit obligation $4,571,000 Fair value of plan assets 4,210,000 The interest (settlement) rate applicable to the plan is 10%. On January 1, 2018, the company amends its pension agreement so that prior service costs of $492,000 are created. Other data related to the pension plan are as follows. 2017 2018 Service cost $152,000 $179,000 Prior service cost amortization 0 89,000 Contributions (funding) to the plan...

On January 1, 2020, Tamarisk Company has the following defined benefit pension plan balances. Projected benefit...

On January 1, 2020, Tamarisk Company has the following defined benefit pension plan balances. Projected benefit obligation $4,460,000 Fair value of plan assets 4,150,000 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 $503,000 are created. Other data related to the pension plan are as follows. 2020 2021 Service cost $150,000 $182,000 Prior service cost amortization 0 92,000 Contributions (funding) to the plan...

Novak Co. has the following defined benefit pension plan balances on January 1, 2020. Projected benefit...

Novak Co. has the following defined benefit pension plan balances on January 1, 2020. Projected benefit obligation 4555000 Fair value of plan assets 4555000 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 $599,000 are created. Other data related to the pension plan are: 2020 2021 Service cost 149,000 170,000 Prior service cost amortization 0 91,000 Contributions (funding) to the plan 201,000 183,000...

Subjects