Question
In: Accounting
Exercise 20-23 Pronghorn Co. provides the following information about its postretirement benefit plan for the year...
Exercise 20-23
Pronghorn Co. provides the following information about its postretirement benefit plan for the year 2017.
|
Service cost |
$89,900 |
||
|
Prior service cost amortization |
3,100 |
||
|
Contribution to the plan |
51,500 |
||
|
Actual and expected return on plan assets |
57,900 |
||
|
Benefits paid |
43,400 |
||
|
Plan assets at January 1, 2017 |
714,600 |
||
|
Accumulated postretirement benefit obligation at January 1, 2017 |
750,400 |
||
|
Accumulated OCI (PSC) at January 1, 2017 |
102,300 |
Dr. |
|
|
Discount rate |
9 |
% |
Prepare a worksheet inserting January 1, 2017, balances, showing
December 31, 2017, balances, and the journal entry recording
postretirement benefit expense. (Enter all amounts as
positive.)
|
PRONGHORN CO. |
||||||||||||||||||
|
General Journal Entries |
Memo Record |
|||||||||||||||||
|
Items |
Annual Postretirement |
Cash |
OCI—Prior |
Postretirement Asset/ |
APBO |
Plan Assets |
||||||||||||
|
Balance, Jan. 1, 2017 |
$ |
Dr.Cr. |
$ |
Dr.Cr. |
$ |
Dr.Cr. |
$ |
Dr.Cr. |
$ |
Dr.Cr. |
$ |
Dr.Cr. |
||||||
|
Service cost |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
||||||||||||
|
Interest cost |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
||||||||||||
|
Actual return |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
||||||||||||
|
Contributions |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
||||||||||||
|
Benefits |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
||||||||||||
|
Amortization of PSC |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
||||||||||||
|
Journal entry for 2017 |
$ |
Dr.Cr. |
$ |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
||||||||||
|
Accumulated OCI, Dec. 31, 2016 |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
||||||||||||||
|
Balance, Dec. 31, 2017 |
$ |
Dr.Cr. |
$ |
Dr.Cr. |
$ |
Dr.Cr. |
$ |
Dr.Cr. |
||||||||||
Solutions
Expert Solution
| Pronghorn Co. | ||||||||||||
| Postretirement Benefit Worksheet—2017 | ||||||||||||
| General Journal Entries | Memo Record | |||||||||||
| Items | Annual Postretirement | Cash | OCI—Prior | Postretirement Asset/ | APBO | Plan Assets | ||||||
| Expense | Service Cost | Liability | ||||||||||
| Balance, Jan. 1, 2017 | $ | $ | $ | 35800 | Cr. | 750400 | Cr. | 714600 | Dr. | |||
| Service cost | 89900 | Dr. | 89900 | Cr. | ||||||||
| Interest cost | 67536 | Dr. | 67536 | Cr. | ||||||||
| Actual return | 57900 | Cr. | 57900 | Dr. | ||||||||
| Contributions | 51500 | Cr | 51500 | Dr. | ||||||||
| Benefits | 43400 | Dr. | 43400 | Cr. | ||||||||
| Amortization of PSC | 3100 | Dr. | 3100 | Cr. | ||||||||
| Journal entry for 2017 | 102636 | Dr. | 51500 | Cr. | 3100 | Cr. | 48036 | Cr. | ||||
| Accumulated OCI, Dec. 31, 2016 | 102300 | Dr. | ||||||||||
| Balance, Dec. 31, 2017 | 99200 | Dr. | 83836 | Cr. | 864436 | Cr. | 780600 | Dr. | ||||
| Service Cost | 89900 |
| Interest on Accumu lated Posstretirement Benfit Obligation (9%* $750400) | 67536 |
| Expected Return on Plan Asset | -57900 |
| Amortisation of Prior Service Cost | 3100 |
| Post Retirement Expense | 102636 |
ekkarill92 answered 1 year agoRelated Solutions
Pronghorn Co. provides the following information about its postretirement benefit plan for the year 2020. Service...
Pronghorn Co. provides the following information about its
postretirement benefit plan for the year 2020.
Service cost
$87,700
Prior service cost
amortization
3,200
Contribution to the plan
60,500
Actual and expected return on plan
assets
62,100
Benefits paid
39,000
Plan assets at January 1, 2020
704,000
Accumulated postretirement benefit
obligation at January 1, 2020
763,900
Accumulated OCI (PSC) at January 1,
2020
101,900
Dr.
Discount rate
9
%
Prepare a worksheet inserting January 1, 2020, balances, showing
December 31, 2020,...
Bonita Co. provides the following information about its postretirement benefit plan for the year 2017. Service...
Bonita Co. provides the following information about its
postretirement benefit plan for the year 2017.
Service
cost
$85,500
Prior
service cost amortization
2,800
Contribution to the plan
56,200
Actual and
expected return on plan assets
58,600
Benefits
paid
36,700
Plan
assets at January 1, 2017
702,400
Accumulated postretirement benefit obligation at January 1,
2017
769,700
Accumulated OCI (PSC) at January 1, 2017
102,000
Dr.
Discount
rate
9
%
Prepare a worksheet inserting January 1, 2017, balances, showing
December 31, 2017,...
Vaughn Co. provides the following information about its postretirement benefit plan for the year 2017. Service...
Vaughn Co. provides the following information about its
postretirement benefit plan for the year 2017.
Service
cost
$83,900
Prior
service cost amortization
3,100
Contribution to the plan
51,000
Actual and
expected return on plan assets
67,100
Benefits
paid
42,700
Plan
assets at January 1, 2017
697,300
Accumulated postretirement benefit obligation at January 1,
2017
756,400
Accumulated OCI (PSC) at January 1, 2017
103,300
Dr.
Discount
rate
8
%
Prepare a worksheet inserting January 1, 2017, balances, showing
December 31, 2017,...
E20-22 Englehart Co. provides the following information about its postretirement benefit plan for the year 2017....
E20-22
Englehart Co. provides the following information about its
postretirement benefit plan for the year 2017.
Service Cost $90,000
Prior service cost and amortization 3,000
Contribution to the plan 56,000
Actual and expected return on plan assets 62,000
Benefits paid 40,000
Plan assets at January 1, 2017 710,000
Accumulated postretirement benefit obligation
at January 1, 2017 760,000
Accumulated OCI (PSC) at January 1, 2017 100,000 Dr.
Discount rate 9%
Instructions
Compute the postretirement benefit expense for 2017.
E20-23
Using the...
Exercise 20-3 Novak Company provides the following information about its defined benefit pension plan for the...
Exercise 20-3
Novak Company provides the following information about its
defined benefit pension plan for the year 2017.
Service cost $90,800
Contribution to the plan 106,900
Prior service cost amortization 9,000
Actual and expected return on plan assets 63,500
Benefits paid 40,100
Plan assets at January 1, 2017 642,500
Projected benefit obligation at January 1, 2017 707,800
Accumulated OCI (PSC) at January 1, 2017 152,900
Interest/discount (settlement) rate 11 %
Prepare a pension worksheet inserting January 1, 2017, balances,
showing...
Metlock Co. has the following postretirement benefit plan balances on January 1, 2020. Accumulated postretirement benefit...
Metlock Co. has the following postretirement benefit plan
balances on January 1, 2020.
Accumulated postretirement benefit obligation
$2,239,000
Fair value of plan assets
2,239,000
The interest (settlement) rate applicable to the plan is 10%. On
January 1, 2021, the company amends the plan so that prior service
costs of $177,000 are created. Other data related to the plan
are:
2020
2021
Service costs
$75,000
$85,000
Prior service costs amortization
0
12,000
Contributions (funding) to the plan
45,000
35,000
Benefits paid...
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.
Pharoah Corporation provides the following information about its defined benefit pension plan for the year 2020:...
Pharoah Corporation provides the following information about its
defined benefit pension plan for the year 2020:
Current service cost
$225,600
Contribution to the plan
263,100
Past service cost, effective December 31, 2020
25,600
Actual return on plan assets
160,000
Benefits paid
106,000
Net defined benefit liability at January 1, 2020
400,600
Plan assets at January 1, 2020
1,600,000
Defined benefit obligation at January 1, 2020
2,000,600
Interest/discount rate on the DBO and plan assets
10%
Pharoah follows IFRS.
QUESTIONS:
A)...
Vaughn Company provides the following information about its defined benefit pension plan for the year 2017....
Vaughn Company provides the following information about its
defined benefit pension plan for the year 2017.
Service cost
$88,500
Contribution to the plan
107,100
Prior service cost amortization
10,600
Actual and expected return on plan assets
63,100
Benefits paid
40,800
Plan assets at January 1, 2017
648,000
Projected benefit obligation at January 1, 2017
688,100
Accumulated OCI (PSC) at January 1, 2017
148,600
Interest/discount (settlement) rate
11
%
Prepare a pension worksheet inserting January 1, 2017, balances,
showing December 31,...
Xyz Company provides the following information about its defined benefit pension plan for the year 2020....
Xyz Company provides the following information about its defined
benefit pension plan for the year 2020.
Service cost
$91,600
Contribution to the plan
104,400
Prior service cost amortization
10,800
Actual and expected return on plan assets
64,600
Benefits paid
40,300
Plan assets at January 1, 2020
650,000
Projected benefit obligation at January 1, 2020
692,000
Accumulated OCI (PSC) at January 1, 2020
150,000
Interest/discount (settlement) rate
11
%
Prepare a pension worksheet inserting January 1, 2020,
balances, showing December 31,...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- identify one intrapersonal relationship and evaluate its component.
- Using Python in vs code: The distribution of letters in a document has a distinctive and...
- Why is De Beers exploring the diamond reselling market? How does the creation of IIDV affect...
- programming in Python The body mass index (BMI) is calculated as a person’s weight (in lb)...
- 1. Show the steps in merging A and B into C where A= 8, 12, 19,...
- 1. Given the following information, determine the beta coefficient for Stock L that is consistent with...
- Generate the first ten rows of Pascal triangle using MATLAB. Post code in the response
ADVERTISEMENT