Question
In: Accounting
Problem 17-6 Determine the PBO; plan assets; pension expense; two years [LO17-3, 17-4, 17-6] Stanley-Morgan Industries...
Problem 17-6 Determine the PBO; plan assets; pension expense; two years [LO17-3, 17-4, 17-6]
Stanley-Morgan Industries adopted a defined benefit pension plan
on April 12, 2018. The provisions of the plan were not made
retroactive to prior years. A local bank, engaged as trustee for
the plan assets, expects plan assets to earn a 10% rate of return.
A consulting firm, engaged as actuary, recommends 6% as the
appropriate discount rate. The service cost is $250,000 for 2018
and $360,000 for 2019. Year-end funding is $260,000 for 2018 and
$270,000 for 2019. No assumptions or estimates were revised during
2018.
Required:
Calculate each of the following amounts as of both December 31, 2018, and December 31, 2019: (Enter your answers in thousands (i.e., 200,000 should be entered as 200).)
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Problem 17-6 Determine the PBO; plan assets; pension expense; two years [LO17-3, 17-4, 17-6] Stanley-Morgan Industries...
Problem 17-6 Determine the PBO; plan assets; pension expense;
two years [LO17-3, 17-4, 17-6]
Stanley-Morgan Industries adopted a defined benefit pension plan
on April 12, 2018. The provisions of the plan were not made
retroactive to prior years. A local bank, engaged as trustee for
the plan assets, expects plan assets to earn a 10% rate of return.
The actual return was also 10% in 2018 and 2019.* A consulting
firm, engaged as actuary, recommends 4% as the appropriate discount...
Problem 17-12 Determine pension expense; journal entries; two years [LO17-3, 17-4, 17-5, 17-6, 17-7, 17-8] The...
Problem 17-12 Determine pension expense; journal entries; two
years [LO17-3, 17-4, 17-5, 17-6, 17-7, 17-8]
The Kollar Company has a defined benefit pension plan. Pension
information concerning the fiscal years 2018 and 2019 are presented
below ($ in millions):
Information Provided by Pension Plan Actuary:
Projected benefit obligation as of December 31, 2017 =
$3,950.
Prior service cost from plan amendment on January 2, 2018 =
$850 (straight-line amortization for 10-year average remaining
service period).
Service cost for 2018 =...
Problem 17-12 Determine pension expense; journal entries; two years [LO17-3, 17-4, 17-5, 17-6, 17-7, 17-8] The...
Problem 17-12 Determine pension expense; journal entries; two
years [LO17-3, 17-4, 17-5, 17-6, 17-7, 17-8]
The Kollar Company has a defined benefit pension plan. Pension
information concerning the fiscal years 2018 and 2019 are presented
below ($ in millions):
Information Provided by Pension Plan Actuary:
Projected benefit obligation as of December 31, 2017 =
$1,850.
Prior service cost from plan amendment on January 2, 2018 = $550
(straight-line amortization for 10-year average remaining service
period).
Service cost for 2018 =...
Problem 17-16 (Static) Comprehensive—reporting a pension plan; pension spreadsheet; determine changes in balances; two years [LO17-3,...
Problem 17-16 (Static) Comprehensive—reporting a pension plan;
pension spreadsheet; determine changes in balances; two years
[LO17-3, 17-4, 17-5, 17-6, 17-7, 17-8]
Skip to question
[The following information applies to the questions
displayed below.]
Actuary and trustee reports indicate the following changes in the
PBO and plan assets of Lakeside Cable during 2021:
Prior service cost at Jan. 1, 2021, from plan amendment at
the
beginning of 2019 (amortization: $4 million per year)
$
32
million
Net loss-pensions at Jan.1, 2021...
Problem 17-16 (Static) Comprehensive—reporting a pension plan; pension spreadsheet; determine changes in balances; two years [LO17-3,...
Problem 17-16 (Static) Comprehensive—reporting a pension plan;
pension spreadsheet; determine changes in balances; two years
[LO17-3, 17-4, 17-5, 17-6, 17-7, 17-8]
Skip to question
[The following information applies to the questions
displayed below.]
Actuary and trustee reports indicate the following changes in the
PBO and plan assets of Lakeside Cable during 2021:
Prior service cost at Jan. 1, 2021, from plan amendment at
the
beginning of 2019 (amortization: $4 million per year)
$
32
million
Net loss-pensions at Jan.1, 2021...
Problem 17-16 (Static) Comprehensive—reporting a pension plan; pension spreadsheet; determine changes in balances; two years [LO17-3,...
Problem 17-16 (Static) Comprehensive—reporting a pension plan;
pension spreadsheet; determine changes in balances; two years
[LO17-3, 17-4, 17-5, 17-6, 17-7, 17-8]
Skip to question
[The following information applies to the questions
displayed below.]
Actuary and trustee reports indicate the following changes in the
PBO and plan assets of Lakeside Cable during 2021:
Prior service cost at Jan. 1, 2021, from plan amendment at
the
beginning of 2019 (amortization: $4 million per year)
$
32
million
Net loss-pensions at Jan.1, 2021...
Exercise 17-19 (Algo) Record pension expense, funding, and gains and losses; determine account balances [LO17-6, 17-7,...
Exercise 17-19 (Algo) Record pension expense, funding, and gains
and losses; determine account balances [LO17-6, 17-7, 17-8]
Beale Management has a noncontributory, defined benefit pension
plan. On December 31, 2021 (the end of Beale's fiscal year), the
following pension-related data were available:
Projected Benefit Obligation
($ in millions)
Balance, January 1, 2021
$
520
Service cost
54
Interest cost, discount rate, 5%
26
Gain due to changes in actuarial assumptions in 2021
(10
)
Pension benefits paid
(26
)
Balance,...
Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2018. The provisions of the...
Stanley-Morgan Industries adopted a defined benefit pension plan
on April 12, 2018. The provisions of the plan were not made
retroactive to prior years. A local bank, engaged as trustee for
the plan assets, expects plan assets to earn a 10% rate of return.
The actual return was also 10% in 2018 and 2019.* A consulting
firm, engaged as actuary, recommends 5% as the appropriate discount
rate. The service cost is $200,000 for 2018 and $290,000 for 2019.
Year-end funding...
Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2018. The provisions of the...
Stanley-Morgan
Industries adopted a defined benefit pension plan on April 12,
2018. The provisions of the plan were not made retroactive to prior
years. A local bank, engaged as trustee for the plan assets,
expects plan assets to earn a 10% rate of return. The actual return
was also 10% in 2018 and 2019.* A consulting firm, engaged as
actuary, recommends 6% as the appropriate discount rate. The
service cost is $150,000 for 2018 and $240,000 for 2019. Year-end
funding...
Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2021. The provisions of the...
Stanley-Morgan Industries adopted a defined benefit pension plan
on April 12, 2021. The provisions of the plan were not made
retroactive to prior years. A local bank, engaged as trustee for
the plan assets, expects plan assets to earn a 10% rate of return.
The actual return was also 10% in 2021 and 2022.* A consulting
firm, engaged as actuary, recommends 5% as the appropriate discount
rate. The service cost is $160,000 for 2021 and $250,000 for 2022.
Year-end funding...
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