Question

In: Accounting

SuperSports provides you the following pension data for the year 2016. Item Service Cost, 2016 $248,000...

SuperSports provides you the following pension data for the year 2016.

Item
Service Cost, 2016 $248,000
Projected Benefit Obligation, January 2016 $340,000
Plan Assets (Fair Value), January 1, 2016 $360,000
Prior Service Cost-AOCI (2016 amortization, $25,000) $250,000
Net Loss-AOCI (2016 amortization, $10,000) $110,000
Actual Return on Plan Assets $45,000
Interest Rate and Expected return on plan assets 10%
Contributions made to plan assets during 2016 $175,000

SuperSports requests you to:

  1. Compute pension expense for the year 2016
  2. Record 2016 journal entry for pension expense

Solutions

Expert Solution

Pension expense for the year 2016 : 271000 dollars

Which is explained below in detail.

2016 journal entry for pension expense:

ekkarill92 answered 3 years ago
Next > < Previous

Related Solutions

Pension data for Sterling Properties include the following: ($ in thousands) Service cost, 2021 $ 115...
Pension data for Sterling Properties include the following: ($ in thousands) Service cost, 2021 $ 115 Projected benefit obligation, January 1, 2021 500 Plan assets (fair value), January 1, 2021 600 Prior service cost—AOCI (2021 amortization, $8) 83 Net loss—AOCI (2021 amortization, $1) 104 Interest rate, 7% Expected return on plan assets, 11% Actual return on plan assets, 12% Required: Determine pension expense for 2021. (Enter your answers in thousands. Amounts to be deducted should be indicated with a minus...
Amortization of Prior Service Cost On January 1, 2016, Baznik Company adopted a defined benefit pension...
Amortization of Prior Service Cost On January 1, 2016, Baznik Company adopted a defined benefit pension plan. At that time, Baznik awarded retroactive benefits to certain employees. These retroactive benefits resulted in a prior service cost of $1,200,000 on that date (which it did not fund). Baznik has six participating employees who are expected to receive the retroactive benefits. Following is a schedule that identifies the participating employees and their expected years of future service as of January 1, 2016:...
Harrison Forklift's pension expense includes a service cost of $18 million. Harrison began the year with...
Harrison Forklift's pension expense includes a service cost of $18 million. Harrison began the year with a pension liability of $44 million (underfunded pension plan). Interest cost, $6; expected return on assets, $12; amortization of net loss, $4. Interest cost, $14; expected return on assets, $10; amortization of net gain, $4. Interest cost, $14; expected return on assets, $10; amortization of net loss, $4; amortization of prior service cost, $5 million. Required: Prepare the appropriate general journal entries to record...
Huntley Corp. provides the following information about its pension plan for the year 2021:                            &
Huntley Corp. provides the following information about its pension plan for the year 2021:                                                                                                                            2021 Fair value of plan assets, first of year $134,100 Defined benefit obligation (DBO) (assumed To equal the ABO for funding purposes under ASPE), first of year 212,700 Current service cost for year                                                                               13,000 Interest or discount rate on the DBO/plan assets                                                  10% Actual earnings on plan assets for year                                                                12,000 Employer contributions for year (funding), September 31, 2021                        24,000...
The Cutting Department of Tangu Carpet Company provides the following data for December 2016. Assume that...
The Cutting Department of Tangu Carpet Company provides the following data for December 2016. Assume that all materials are added at the beginning of the process. Work in process, December 1, 10,400 units, 75% completed $107,380*     *Direct materials (10,400 × $8) $83,200     Conversion (10,400 × 75% × $3.1) 24,180 $107,380 Materials added during December from Weaving Department, 160,000 units $1,288,000 Direct labor for December 210,803 Factory overhead for December 257,647 Goods finished during December (includes goods in process, December 1),...
The Cutting Department of Tangu Carpet Company provides the following data for December 2016. Assume that...
The Cutting Department of Tangu Carpet Company provides the following data for December 2016. Assume that all materials are added at the beginning of the process. Work in process, December 1, 12,600 units, 75% completed $127,575*     *Direct materials (12,600 × $7.2) $90,720     Conversion (12,600 × 75% × $3.9) 36,855 $127,575 Materials added during December from Weaving Department, 194,000 units $1,406,500 Direct labor for December 342,702 Factory overhead for December 418,858 Goods finished during December (includes goods in process, December 1),...
The Cutting Department of Tangu Carpet Company provides the following data for December 2016. Assume that...
The Cutting Department of Tangu Carpet Company provides the following data for December 2016. Assume that all materials are added at the beginning of the process. Work in process, December 1, 14,600 units, 80% completed $178,704*     *Direct materials (14,600 × $9.2) $134,320     Conversion (14,600 × 80% × $3.8) 44,384 $178,704 Materials added during December from Weaving Department, 224,800 units $2,101,880 Direct labor for December 385,960 Factory overhead for December 471,728 Goods finished during December (includes goods in process, December 1),...
In April 2016, SoCal Trailers Co. had the following cost data: COST DATA a. Raw materials...
In April 2016, SoCal Trailers Co. had the following cost data: COST DATA a. Raw materials costing $92,000 were purchased. b. Raw materials costing $91,000 were used: direct materials, $85,000; indirect materials $6,000. c. Factory wages of $72,000 were incurred: direct labor $60,000; indirect labor $12,000. Social security tax deductions were $4,464, Medicare tax deductions were $1,044, federal income tax deductions were $10,800. d. Other overhead costs of $29,000 were incurred. (Credit Accounts Payable.) e. Estimated manufacturing overhead costs were...
Item 11 Item 11 Nu Company reported the following pretax data for its first year of...
Item 11 Item 11 Nu Company reported the following pretax data for its first year of operations. Net sales 2,960 Cost of goods available for sale 2,360 Operating expenses 800 Effective tax rate 40 % Ending inventories: If LIFO is elected 960 If FIFO is elected 1,140 What is Nu's gross profit ratio if it elects LIFO?----- --------------------------------------------------------------------------------------------------------------------------------------------------- Item 12 Item 12 Udon Inc. adopted dollar-value LIFO (DVL) as of January 1, 2018, when it had an inventory of $710,000....
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.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT