E20-7 (LO1,2,3) EXCEL (Basic Pension Worksheet) The following defined pension data of Rydell Corp. apply to the year 2017.Projected benefit obligation, 1/1/17 (before amendment)Plan assets, 1/1/17$560,000546,200Pension liabilityOn January 1, 2017, Rydell Corp., through plan amendment,grants prior service benefits having a present value ofSettlement rate13,800120,0009%58,00065,00052,28040,00017,000Service costContributions (funding)Actual (expected) return on plan assetsBenefits paid to retireesPrior service cost amortization for 2017InstructionsFor 2017, prepare a pension worksheet for Rydell Corp. that shows the journal entry for pension expense and the year-end bal-ances in the related pension accounts.

schedule an pension worksheet foe Rydell Corp General Journal Entries year end balance Memo…

E20-7 (LO1,2,3) EXCEL (Basic Pension Worksheet) The following defined pension data of Rydell Corp. apply to the year 2017. Projected benefit obligation, 1/1/17 (before amendment) Plan assets, 1/1/17 Pension liability On January 1, 2017, Rydell Corp., through plan amendment, grants prior service benefits having a present value of Settlement rate Service cost Contributions (funding) Actual (expected) return on plan assets Benefits paid to retirees Prior service cost amortization for 2017 $560,000 546,200 13,800 120,000 9% 58,000 65,000 52,280 40,000 17,000 Instructions For 2017, prepare a pension worksheet for Rydell Corp. that shows the journal entry for pension expense and the year-end bal- ances in the related pension accounts.

E20-7 (LO1,2,3) EXCEL (Basic Pension Worksheet) The following defined pension data of Rydell Corp. apply to the year 2017. Projected benefit obligation, 1/1/17 (before amendment) Plan assets, 1/1/17 Pension liability On January 1, 2017, Rydell Corp., through plan amendment, grants prior service benefits having a present value of Settlement rate Service cost Contributions (funding) Actual (expected) return on plan assets Benefits paid to retirees Prior service cost amortization for 2017 $560,000 546,200 13,800 120,000 9% 58,000 65,000 52,280 40,000 17,000 Instructions For 2017, prepare a pension worksheet for Rydell Corp. that shows the journal entry for pension expense and the year-end bal- ances in the related pension accounts.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 4E

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E19.2 (LO 1, 2, 3) (Computation of Pension Expense) Veldre Company provides the following information about its defined benefit pension plan for the year 2025. Service cost Contribution to the plan Prior service cost amortization Actual and expected return on plan assets Benefits paid Plan assets at January 1, 2025 Projected benefit obligation at January 1, 2025 Accumulated OCI (PSC) at January 1, 2025 Interest/discount (settlement) rate $ 90,000 105,000 10,000 64,000 40,000 640,000 700,000 150,000 10% Instructions Compute the pension expense for the year 2025. E19.3 (LO 1, 2, 3) (Preparation of Pension Worksheet) Using the information in E19.2, prepare a pension worksheet inserting January 1, 2025, balances, showing December 31, 2025, balances, and the journal entry recording pension expense.
1. Compute 2022 net periodic pension expense. The 2022 records of MPS Company provided the following data related to its noncontributory, defined benefit pension plan (amounts in PO00s): a. Accumulated benefit obligation (report of actuary) Beginning balance P3,000 Service cost 1,200 Interest cost 240 Pension benefits paid Ending balance (400) P4,040 Discount rate used by actuary, 8% b. Plan assets at fair value (report of trustee): Beginning balance Actual return on plan assets Contributions P2,400 168 1,016 (400) Pension benefits paid Ending balance Р3,192 Expected long-term rate of return of plan assets, 7% c. January 1, 2022, balance of unrecognized prior service cost, gains and losses, and transaction cost, zero.
W13-5 The following facts apply to the pension plan of Boudreau Inc. for the year 2019. Plan Assets, January 1, 2019 Projected benefit obligation January 1, 2019 Settlement rate P 4,900,000 4,900,000 8% Service cost Contributions (funding) Actual and expected return on plan assets Benefits paid to retires 400,000 250,000 497,000 334,000 Instructions: Compute pension expense for the year 2019. As part of your solution, prepare a pension worksheet that shows the journal entry for pension expense for 2019 and the year-end balances in the related pension асcounts
W13-2 Violet Company provides the following information about its defined benefit pension plan for the year 2019. Service Cost 900,000 1,005,000 Contribution to the plan Actual and expected return on plan assets Benefits paid Plan assets at January 1, 2019 Projected benefit obligation at January 1, 2019 Accumulated OCI at January 1, 2019 Interest (discount) settlement rate 640,000 400,000 6,400,000 7,000,000 1,500,000 10% Instructions: (a)Compute the pension expense for the year 2019. (b)Prepare a pension worksheet inserting January 1, 2019, balances, showing December 31, 2019, balances, and the journal entry recording
M10-18. Analyzing and Interpreting Pension Disclosures-Plan Assets and Cash Flow YUM! Brands Inc. discloses the following pension footnote in its 10-K report. Pension Plan Assets ($ millions) Fair value of plan assets at beginning of year Actual return on plan assets. Employer contributions Benefits paid.. Fair value of plan assets at end of year. 2018 $864 (49) 13 (73) $755 a. How does the "actual return on plan assets" of $(49) million affect YUM!'s reported profits for 2018? b. YUM! Brands contributed $13 million cash to the pension plan investment account (asset) during the year. Which of the following is true? i. YUM! recognized the $13 million cash payment as a pension expense in 2018. ii. YUM! did not recognize the $13 million cash payment as a pension expense in 2018 because it is not tax deductible. iii. YUM! did not recognize the 13 million cash payment as a pension expense in 2018 because it relates to employees' service in prior periods. iv. YUM! did not recognize the $13…
Crane Enterprises Ltd. provides the following information about its defined benefit pension plan: Balances or Values at December 31, 2023 Defined benefit obligation Vested benefit obligation Fair value of plan assets $2,710,000 1,629,393 2,255,546 Other pension plan data: Current service cost for 2023 93,000 Actual return on plan assets in 2023 129,000 Return on plan assets in 2023 using discount rate 173,920 Interest on January 1, 2023 defined benefit obligation 250,000 Funding of plan in 2023 91,406 Benefits paid 139,000 (a) Calculate the January 1, 2023 balances for the pension-related accounts if Crane follows IFRS. Defined benefit obligation Fair value of plan assets Net defined benefit +A +A
Vaughn Enterprises provides the following information relative to its defined benefit pension plan. Balances or Values at December 31, 2020Projected benefit obligation $2,726,600Accumulated benefit obligation 1,982,100Fair value of plan assets 2,293,300Accumulated OCI (PSC) 208,700Accumulated OCI—Net loss (1/1/20 balance, 0) 45,700Pension liability 433,300Other pension plan data for 2020: Service cost $94,700Prior service cost amortization 42,100Actual return on plan assets 129,100Expected return on plan assets 174,800Interest on January 1, 2020, projected benefit obligation 252,800Contributions to plan 93,100Benefits paid 138,800 Collapse question part(a) Prepare the note disclosing the components of pension expense for the year 2020. (Enter amounts that reduce pension expense with either a negative sign preceding the number e.g. -45 or parenthesis e.g. (45).) Components of Pension ExpenseService Cost$94700Interest Cost252800Expected Return on Plan Assets(174800)Prior Service Cost…
Hicks Cable Company has a defined benefit pension plan. Three alternative possibilities for pension-related data at January 1, 2016, are shown below: ($ in 000s) Case 1 Case 2 Case 3 $ (330) (8) 16 (2,550) (2,670) 2,700 Net loss (gain)-AOCI, Jan. 1 2016 loss (gain) on plan assets 2016 loss (gain) on PBO Accumulated benefit obligation, Jan. 1 Projected benefit obligation, Jan. 1 Fair value of plan assets, Jan. 1 Average remaining service period of active employees (years) $ 320 $ 260 (11) (23) (2,950) (265) (1,450) (1,700) 1,550 (3,310) 2,800 12 15 10 Required: 1. For each independent case, calculate any amortization of the net loss or gain that should be included as a component of pension expense for 2016. 2. For each independent case, determine the net loss-AOCI or net gain-AOCI as of January 1, 2017.
Vaughn Enterprises provides the following information relative to its defined benefit pension plan. Balances or Values at December 31, 2020Projected benefit obligation $2,726,600Accumulated benefit obligation 1,982,100Fair value of plan assets 2,293,300Accumulated OCI (PSC) 208,700Accumulated OCI—Net loss (1/1/20 balance, 0) 45,700Pension liability 433,300Other pension plan data for 2020: Service cost $94,700Prior service cost amortization 42,100Actual return on plan assets 129,100Expected return on plan assets 174,800Interest on January 1, 2020, projected benefit obligation 252,800Contributions to plan 93,100Benefits paid 138,800 Collapse question part(a)Prepare the note disclosing the components of pension expense for the year 2020. (Enter amounts that reduce pension expense with either a negative sign preceding the number e.g. -45 or parenthesis e.g. (45).) Components of Pension ExpenseService Cost$94700Interest Cost252800Expected Return on Plan Assets(174800)Prior Service Cost…
E20-3 (Preparation of pension Worksheet) Verde Company provides the following information about its defined benefit pension plan for the year 2017. Service Cost $90,000 Contribution to the plan $105,000 Prior service cost amortization $10,000 Actual and expected return on plan assets $64,000 Benefits paid $40,000 Plan assets at January 1, 2017 $640,000 Projected benefit obligation at Jaunary 1, 2017 $700,000 Accumulated OCI (PSC) at January 1, 2017 $150,000 Interest/discount(settlement) rate 10% Instructions: Prepare a pension worksheet inserting January 1, 2017, balances, showing December 31, 2017, balances, and the journal entry recording pension expense.
8. P Corp. has a defined benefit pension plan. On December 31, 2021 (the end of P's fiscal year), the following pension-related data were available: Projected Benefit Obligation ($ in millions) Balance, January 1, 2021 $240 Service cost 41 Interest cost, discount rate, 5% 12 Gain due to changes in actuarial assumptions in 2021 (5) Pension benefits paid (20) Balance, December 31, 2021 $268 Plan Assets Balance, January 1, 2021 $250 Actual return on plan assets 20 (Expected return on plan assets, $22.5) Cash contributions 35 Pension benefits paid (20) Balance, December 31, 2021 $285 January 1, 2021, balances: Prior service cost (amortization $4 per year) $24 Net gain (any amortization over 15 years) 55 Required: （show the computing process and precise journal entries） 1) Prepare the 2021 journal entry to record pension expense. 2) Prepare the 2021 journal entry to record the…
Sharp Inc. had the following balances related to their Pension trust fund as of January 1, 2022 Plan Assets Projected Benefit Obligation. Pension Liability.. Accumulated Other Comprehensive Income - Prior Service Cost. Accumulated Other Comprehensive Income - Pension Gains/Losses. 235,000 dr 243,600 cr 8,600 cr -0- 5,820 cr Sharp Inc.'s pension plan required the following adjustments for the year 2022. 55,000 43,000 7% Plan Amendment for Prior Service Cost Annual Service Cost. Settlement Rate Actual Return on Plan Assets. Expected Return on Plan Assets. Funding Contributions, Benefits Paid.. Amortization of Prior Service Cost (straight line). 17.400 25,000 L36,000 35,250 5,000 You may use a blank pension worksheet provided to help answer the following question. Sharp Inc. will report Pension Expense for the year 2022 of what amount? O a $39,052 Ob $43,902 Oc S62,560 O d. $59,102 O e $93,902