On January 1, 2019, Parkway Company adopted a defined benefit pension plan. At that time, Parkway awarded retroactive benefits to its employees, resulting in a prior service cost of $2,180,000 on that date (which it did not fund). Parkway decided to amortize this cost by the straight-line method over the 16-year average remaining service life of its active participating employees. Parkway’s actuary and funding agency have also provided the following additional information for 2019 and 2020:
|
2019 |
2020 |
|
| Service cost | $340,000 | $348,000 |
| Projected benefit obligation (1/1) | 2,180,000* | 2,738,000 |
| Plan assets (1/1) | 0 | 670,000 |
| Discount rate | 10% | 10% |
| Expected long-term (and actual) rate of return on plan assets | — | 9% |
*Due to the prior service cost
Parkway contributed $670,000 and $700,000 to the pension fund at the end of 2019 and 2020, respectively. There are no other components of Parkway’s pension expense. At the end of 2020, the projected benefit obligation was $3,359,800 and the fair value of the pension plan assets was $1,430,300.
Required:
| 1. | Compute the amount of Parkway’s pension expense for 2019 and 2020. |
| 2. | Prepare all the journal entries related to Parkway’s pension plan for 2019 and 2020. |
| 3. | What is the total accrued/prepaid pension cost at the end of 2020? Is it an asset or a liability? |
CHART OF ACCOUNTSParkway CompanyGeneral Ledger
| ASSETS | |
| 111 | Cash |
| 121 | Accounts Receivable |
| 141 | Inventory |
| 152 | Prepaid Insurance |
| 181 | Equipment |
| 198 | Accumulated Depreciation |
| LIABILITIES | |
| 211 | Accounts Payable |
| 231 | Salaries Payable |
| 250 | Unearned Revenue |
| 251 | Accrued/Prepaid Pension Cost |
| 261 | Income Taxes Payable |
| EQUITY | |
| 311 | Common Stock |
| 331 | Retained Earnings |
| 916 | Other Comprehensive Income: Prior Service Cost |
| REVENUE | |
| 411 | Sales Revenue |
| EXPENSES | |
| 500 | Cost of Goods Sold |
| 511 | Insurance Expense |
| 512 | Utilities Expense |
| 521 | Salaries Expense |
| 522 | Pension Expense |
| 532 | Bad Debt Expense |
| 540 | Interest Expense |
| 541 | Depreciation Expense |
| 559 | Miscellaneous Expenses |
| 910 | Income Tax Expense |
Compute the amount of Parkway’s pension expense for 2019 and 2020.
|
2019 |
2020 |
|
| Pension expense |
2. Prepare the entries to record prior service cost on January 1, 2019, and the pension expense and amortization of prior service costs on December 31, 2019 and 2020.
General Journal Instructions
PAGE 2019
GENERAL JOURNAL
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2. Prepare the entries to record prior service cost on January 1, 2019, and the pension expense and amortization of prior service costs on December 31, 2019 and 2020.
General Journal Instructions
PAGE 2020
GENERAL JOURNAL
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3. What is the total accrued/prepaid pension cost at the end of 2020?
Is it an asset or liability?
In: Accounting
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In: Accounting
You are an assistant Human Resource Manager at Company X. You have had this job for two years, and you love it. You have a great opportunity to become the manager within the year as your immediate boss is nearing retirement. One day, the president of the company comes by your desk to ask you for “a favour”. He has just hired a “rock star” CEO and wants you to enroll her in the company benefits program right away and waive the required 6 months probationary period. He really wants to make a good impression with her and roll out the red carpet. The policy is that all employees must wait 6 months before enrolling in any company benefits program. You are well aware of the policy because when you were first hired, you needed new glasses and had to wait 6 months for coverage even though you had asked for a waiver. What do you do? Explain your decision using the four ethical decision-making criteria discussed in class and in your textbook.
In: Operations Management
WBG manufactures and sells electronic transducers that are used in military and commercial products. WBG has three divisions: Transducer Division. Military Division, and Commercial Division. The Transducer Division designs and produces transducers that are sold externally as well as internally to the Military Division and the Commercial Division. Both the Military Division and the Commercial Division incorporate transducers in their final products that are sold to non- WBG end users. Because of the unique proprietary design of the WBG transducers. Military and Commercial Divisions only use WBG transducers in their products. All of WBG's sales are in the United States.
The three divisions are profit centers and about 50 percent of the Transducer Division output is sold externally, while the remainder is sold internally to the Military Division and the Commercial Division. WBG currently uses a full-cost transfer pricing policy for the transducers. The senior managers of the three divisions receive about 40 percent of their compensation tied to the performance of their division and the balance is received as base salary.
Because of the incessant bickering among WBG's three divisions' management teams over its current transfer pricing policy, the CEO of WBG attended a seminar on transfer pricing. After attending the seminar, the CEO proposed the following new policy for transducers: “Each month the transfer price of transducers will be the same as the external market price the Transducer Division receives for transducers sold to external customers, if. and only if. the Transducer Division is at capacity for the month. Otherwise, the transfer price is the Transducer Division's variable cost for the month.”
Required:
You work for the CEO. Write a memo to the CEO that (a) explains the benefits of the proposed policy, (b) explains the likely changes in behavior among the three divisions that the new policy is likely to produce, and (c) states what additional data the CEO and you should collect and how you would analyze the data before making a decision regarding whether or not the new transfer pricing policy should be adopted.
In: Accounting
In: Physics
Monty Corp. had the following long-term receivable account balances at December 31, 2019.
| Notes receivable | $2,000,000 | |
| Notes receivable - Employees | 350,000 |
Transactions during 2020 and other information relating to Monty'
long-term receivables were as follows:
| 1. | The $2,000,000 note receivable is dated May 1, 2019, bears interest at 9%, and represents the balance of the consideration received from the sale of Monty's electronics division to Sandhill Company. Principal payments of $666,667 plus appropriate interest are due on May 1, 2020, 2021, and 2022. The first principal and interest payment was made on May 1, 2020. Collection of the note instalments is reasonably assured. | |
| 2. | The $350,000 note receivable is dated December 31, 2019, bears interest at 9%, and is due on December 31, 2022. The note is due from Marcia Cumby, president of Monty Corp., and is secured by 10,000 Monty common shares. Interest is payable annually on December 31, and the interest payment was made on December 31, 2020. The quoted market price of Monty's common shares was $50 per share on December 31, 2020. | |
| 3. | On April 1, 2020, Monty sold a patent to Carla Vista Company in exchange for a $200,000 non–interest-bearing note due on April 1, 2022. There was no established exchange price for the patent, and the note had no ready market. The prevailing rate of interest for a note of this type at April 1, 2020, was 10%. The present value of $1 for two periods at 10% is 0.82645 (use this factor). The patent had a carrying amount of $43,000 at January 1, 2020, and the amortization for the year ended December 31, 2020 would have been $7,000. The collection of the note receivable from Carla Vista is reasonably assured. | |
| 4. | On July 1, 2020, Monty sold a parcel of land to Teal Mountain Inc. for $220,000 under an instalment sale contract. Teal Mountain made a $54,000 cash down payment on July 1, 2020, and signed a four-year, 11% note for the $166,000 balance. The equal annual payments of principal and interest on the note will be $53,506, payable on July 1, 2021, through July 1, 2024. The land could have been sold at an established cash price of $210,000. Monty had paid $140,000 for the land when it purchased it. Collection of the instalments on the note is reasonably assured. | |
| 5. | On August 1, 2020, Monty agreed to allow its customer, Saini Inc., to substitute a six-month note for accounts receivable of $210,000 it owed. The note bears interest at 6% and principal and interest are due on the note’s maturity date. |
Click here to view the factor table PRESENT VALUE OF 1.
Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF
1.
The tables in this problem are to be used as a reference for this
problem. (For calculation purposes, use 5 decimal
places as displayed in the factor table
provided.)
Partially correct answer iconYour answer is partially correct.
Describe the relevant cash flows in terms of amount and timing.
| Cash inflows from notes | ||||||||||||
| 2020 | 2021 | 2022 | 2023 | 2024 | ||||||||
| 1. | 9% Note receivable | |||||||||||
| Principal | $ | $ | $ | $ | $ | |||||||
| Interest | ||||||||||||
| 2. | 9% Note receivable | |||||||||||
| Principal | ||||||||||||
| Interest | ||||||||||||
| 3. | Non-interest-bearing note receivable | |||||||||||
| Payment | ||||||||||||
| 4. | Instalment contract receivable | |||||||||||
| Down payment | ||||||||||||
| Payment | ||||||||||||
| 5. | 6% Note receivable | |||||||||||
| Principal | ||||||||||||
| Interest | ||||||||||||
| Total | $ | $ | $ | $ | $ | |||||||
Determine the amount of interest income that should be reported in 2020. (Round answers to 0 decimal places, e.g. 8,971.)
| Note Receivable | $ | |
| Note Receivable—Employees | $ | |
| Zero-interest-bearing Note—Patent | $ | |
| Instalment Contract—Sale of Land | $ | |
| Note Receivable - Saini | $ | |
| Total Interest Income reported in 2020 | $ |
Determine the portion of the note and any interest that should be reported in current assets at December 31, 2020. (Round answers to 0 decimal places, e.g. 9,871. Do not leave any answer field blank. Enter 0 for amounts.)
| Current portion of 9% notes receivable | $ | |
| Current portion of 8% notes receivable | $ | |
| Non-interest-bearing note receivable | $ | |
| Current portion of instalment contract | $ | |
| Note receivable from customer | $ | |
| Total current notes and interest | $ |
Prepare the long-term receivables section of Monty statement of financial position at December 31, 2020. (Round answers to 0 decimal places, e.g. 8,971.)
| Monty Corp. Long-Term Receivables Section of Statement of Financial Positon December 31, 2020 |
||
| 9% note receivable from sale of division | $ | |
| 9% note receivable from employees | ||
| Zero-interest-bearing note from sale of patent | ||
| Instalment contract receivable | ||
| Total long-term receivables | $ | |
Prepare a schedule showing the current portion of the long-term receivables and accrued interest receivable that would appear in Monty's statement of financial position at December 31, 2020. (Round answers to 0 decimal places, e.g. 8,971.)
| Monty Corp. Selected Statement of Financial Positon Balances December 31, 2020 |
||
| Note receivable from customer | $ | |
| Current portion of long-term receivables: | ||
| Note receivable from sale of division | $ | |
| Instalment contract receivable | ||
| Total current portion of long-term receivables | $ | |
| Accrued interest receivable: | ||
| Note receivable from sale of division | $ | |
| Instalment contract receivable | ||
| Note receivable from customer | ||
| Total accrued interest receivable | $ | |
In: Accounting
Please answer 1-7
Which of these has the potential to differentiate into either myeloid stem cells or lymphoid stem cells?
|
erythrocytes |
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|
mast cells |
||
|
pluripotent stem cells |
||
|
plasma cells |
Innate immunity involves which components of the human body?
|
skin |
||
|
mucus |
||
|
blood cells |
||
|
all of these |
Giardiasis is caused by the protozoa Giardia, what is its most common method of entry into the human body?
|
blood transfusions |
||
|
through contaminated water |
||
|
poorly cooked meat |
||
|
none of these |
Which immunoglobulin has a pentamer structure?
|
IgG |
||
|
IgM |
||
|
IgA |
||
|
IgD |
The process of hematopoiesis is best described as __________.
|
the differentiation of blood cells |
||
|
the differentiation of viruses |
||
|
the differentiation of bacterial cells |
||
|
none of these |
Which of these best describe adhesins/ligands?
|
they are either cilia or flagella and are used in cell movement |
||
|
they are surface molecules on a pathogen that bind to the host cell |
||
|
they are a type of exotoxin |
||
|
they are a type of endotoxin |
Which of these is an example of artificially acquired active immunity?
|
immunity acquired after catching measles from someone |
||
|
immunity acquired from mother to child through antibodies in breast milk |
||
|
immunity acquired via vaccination of a specific antigen |
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|
immunity acquired via injection of antibodies into the body |
In: Biology
Applying Interrelations of Financial Statements
Fill in the missing amounts, a through t, for each of the three separate companies.
| Case 1 | Case 2 | Case 3 | |
|---|---|---|---|
| Net income, 2020 | $42,000 | h) | $135,000 |
| Retained earnings, December 31, 2020 | a) | 1,305,000 | n) |
| Retained earnings, December 31, 2019 | 15,000 | 1,170,000 | 381,750 |
| Dividends, 2020 | 12,000 | 52,500 | o) |
| Common stock, December 31, 2020 | b) | i) | 225,000 |
| Total stockholders’ equity, December 31, 2020 | 168,000 | j) | 720,000 |
| Other comprehensive income, 2020 | c) | 0 | p) |
| Accumulated other comprehensive income, December 31, 2019 | 4,500 | 0 | 3,750 |
| Accumulated other comprehensive income, December 31, 2020 | 3,000 | 0 | q) |
| Comprehensive income, 2020 | d) | k) | 154,500 |
| Total assets, December 31, 2020 | e) | 3,300,000 | 1,320,000 |
| Total assets, excluding cash, December 31, 2020 | f) | l) | 1,237,500 |
| Total liabilities, December 31, 2020 | 138,000 | 1,350,000 | r) |
| Cash, December 31, 2019 | 7,500 | 112,500 | s) |
| Cash, December 31, 2020 | 15,000 | m) | t) |
| Change in cash, 2020 | g) | (15,000) | 15,000 |
In: Accounting
Former Secretary of Labor Robert Reich has advocated for a cap- and- trade program for greenhouse gases. Under Reich’s proposal, the government would auction off the permits and distribute the revenues in a lump sum fashion to every adult citizen [ Reich, 2008]. What are the implications of this plan for excess burden? If you were interested in reducing excess bur-den, how would you distribute the revenues?
In: Finance
4. Former Vice President Al Gore says this about global warming in his 2006 book and film, An Inconvenient Truth:
“We can no longer afford to view global warming as a political issue – rather, it is the biggest moral challenge facing our global civilization”
c. What actions are recommended for individuals who are interested in helping to reduce the problems caused by global warming?
In: Chemistry