On January 1, 2016, Ju Co. has the following balances: Defined benefit obligation P2,100,000 Fair value of plan assets 1,800,000 The discount rate is 10%. Other data related to the pension plan for 2016 are: Service cost P180,000 Past service costs due to increase in benefits 60,000

On January 1, 2016, Ju Co. has the following balances: Defined benefit obligation P2,100,000 Fair value of plan assets 1,800,000 The discount rate is 10%. Other data related to the pension plan for 2016 are: Service cost P180,000 Past service costs due to increase in benefits 60,000

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 6RE

See similar textbooks

Related questions

Q: On January 1, 2021, Ravetch Corporation’s projected benefit obligation was $30 million. During 2021,…

A: Interest cost = Beginning Projected benefit obligation x actuary’s discount rate = $30 million x 10%…

Q: Hudson Company's actuary has provided the following information concerning the company's defined…

A: Given; Fair value of plant assets: $350,000 Expected project benefit obligation: $424,000 Actual…

Q: U.S. Metallurgical Inc. reported the following balances in its financial statements and disclosure…

A: As posted multiple sub parts questions we are answering only first three kindly repost the…

Q: On January 1, 2020, Hulk Ltd. reported the following balances relating to their defined benefit…

A: Defined benefit obligations Plan Assets Net (liability)/Assets Opening $1,600,000 Opening…

Q: At the end of the current year, Top Co. has a defined benefit obligation of £335,000 and pension…

A: Pension Fund The purpose of creating the pension fund is to some of the small portion of amount…

Q: Pina Co. has the following defıned benefit pension plan balances on January 1, 2020. Projected…

A: Given information is represented in the form of a table below,

Q: On January 1, 2020, McGee Co. had the following balances: Projected benefit obligation…

A: As per IAS 19 "Employee Benefits" Total Expense is equal to: Current Service Cost Add: Past…

Q: Louie Company's defined benefit pension plan had a PBO of $272,000 on January 1, 2021. During 2021,…

A: Projected Benefit Obligation(PBO) is estimated amount that is set aside by entity to meet pension…

Q: Blossom Company provides the following information about its defined benefit pension plan Service…

A: Formula used for calculating Pension expense: Pension expense = Service cost + Interest cost + Prior…

Q: The following information is related to the pension plan of B, Inc. for 2016. Actual return on plan…

A: Service cost 800,000 Interest on defined benefit obligation 326500 net gain on liability -82500…

Q: The following information relates to Company K's pension plan: Plan asset, January 1, 2018 P 950,000…

A: Interest cost = Defined benefit obligation x discount rate = 1000000 x 10% = P100,000

Q: (a) Compute pension expense for Howard Corp. for the year 2020 by preparing a pension worksheet.…

A: Journal Entry The business transactions that recorded in the accounting books of a Business is…

Q: M Service Co. reported the following for its defined-benefit pension plan for 2020:…

A: A projected benefit obligation (PBO) is an actuarial measurement of what a company will need at the…

Q: Indigo Company provides the following information about its defined benefit pension plan for the…

A: Solution: Items General Journal Entries Memo Record Annual Pension Expense Cash OCI…

Q: On January 1, 2020, McGee Co. had the following balances: Projected benefit obligation…

A: Interest cost on projected benefit obligation = Projected benefit obligation x Settlement rate =…

Q: On January 1, 2021, Oriole Co. has the following balances: Projected benefit obligation…

A: Workings:

Q: On January 1, 2017, Roca Co. has the following balances: Projected benefit obligation $3,730,000…

A: The present amount required by an entity to fulfill the pension obligations relating to the future…

Q: Net Gain or Loss Hudson Company's actuary has provided the following information concerning the…

A: Gain at beginning of 2016 = Expected projected benefit obligation - Actual projected benefit…

Q: On January 1, 2020, McGee Co. had the following balances: Projected benefit obligation…

A: Compute the pension expense- Pension expense = Service cost + Interest cost - Expected return on…

Q: On January 1, 2015, Parks Co. has the following balances: Projected benefit obligation $4,200,000…

A: projected benefit obligation:- Projected Benefit obligation add: Service cost less: Benefit…

Q: At the end of the current period, Oxford Ltd. has a defined benefit obligation of $195,000 and…

A: Compute the amount related to its pension plan will be reported on the company's statement of…

Q: ation is as fol

A: Market value of Plan Asset $1,155,300 Benefit Obligation $1,375,000 Current Service cost is…

Q: On January 1, 2021, Parks Co. has the following balances: Projected benefit obligation $5,600,000…

A: Benefit refers to profit.Obligation is Zn important part of accounting which is also called as…

Q: On December 31, 2016, Robey Company accumulated the following information for 2016 in regard to its…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: E20-3 (Preparation of pension Worksheet) Verde Company provides the following information about its…

A: Prepare a pension worksheet: Items Annual pension expenses Cash Pension Asset / Liability…

Q: M Service Co. reported the following for its defined-benefit pension plan for 2020:…

A: Introduction: A projected benefit obligation (PBO) is an economic assessment of how much money a…

Q: Horizon Inc. has a defined benefit pension plan. The following pension-related data were available…

A: Journal entries are to be reported to show the primary effect of transactions on account books of an…

Q: On January 1, 2016, J Co. has the following balances: Defined benefit obligation P2,100,000 Fair…

A: A defined benefit plan seems to be a sort of post-employment benefit that provides employees with a…

Q: On December 31, 2016, Robey Company accumulated the following information for 2016 in regard to its…

A: As posted multiple sub parts questions we are answering only first three sub parts kindly repost the…

Q: Hicks Cable Company has a defined benefit pension plan. Three alternative possibilities for…

A: Case 1: Net loss (gain) = $320 Corridor = $331 So, no excess no amortisation Case 2: Net loss (gain)…

Q: Maytag Service Co. reported the following for its defined-benefit pension plan for 2021:…

A: A projected benefit obligation (PBO) is an actuarial measurement of what a company will need at the…

Q: ation received the following report from its actuary at the end of the year: December 31, 2014…

A: Pension liability refers to the concept of evaluating the difference between the actual amount due…

Q: 152,000 450,600 (253,200) -237,000 2/31 349,400 -237,000 (112.400) 31 31 (398,400) SC 508,000…

A: Journal entry refers to recording or posting of the transactions of the business into the books of…

Q: Blossom Company provides the following information about its defined benefit pension plan for the…

A: Formula: Interest cost = Beginning projected benefit obligation x interest rate Beginning projected…

Q: At the beginning of current year, Maximus Company had projected benefit obligation of P10,000,000…

A: Computation of Pension worksheet:

Q: On January 1, 2020, Blue Company has the following defined benefit pension plan balances.…

Q: Required: a. Compute pension expense for Howard Corp. for the year 2020 by preparing a pension…

A: Journal: Journal is considered as a book of original entry because all the transactions that have…

Q: On January 1, 2017, Makoto Co. has the following balances: Projected benefit obligation $2,730,000…

A: SOLUTION- NOTE= IN THAT QUESTION NOTHING IS ASKED WHAT TO CALCULATE . ACCORDING TO QUESTION I…

Q: On January 1, 2020, McGee Co. had the following balances: Projected benefit obligation…

A: Given : On January 1, 2020, McGee Co. had the following balances : Projected benefit obligation…

Q: Rosaria Co. sponsors a defined benefit pension plan. For the current year ended December 31, the…

A: The plan assets refers to the assets or investments made or held by long term employee benefit fund…

Q: Shamrock Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the…

A: What is meant by pension? It is the retirement contribution made by the employer for the employee,…

Q: Louie Company's defined benefit pension plan had a PBO of $266,000 on January 1, 2021. During 2021,…

A: Benefit Pension plan - It is a type of pension plan in which the employer promises to pay a…

Q: U.S. Metallurgical Inc. reported the following balances in its financial statements and disclosure…

A: Hey, since there are multiple sub-parts posted, we will answer the three sub-parts. If you want any…

Q: Pina Co. has the following defined benefit pension plan balances on January 1, 2020. Projected…

A: A statement showing the item-wise amount of all the money received by an individual from the…

Q: Richmond Company's defined benefit pension plan had a Projected Benefit Obligation (PBO) of $250,000…

A: Projected benefit obligation represents the retirement benefits earned by the employees at the…

Q: On January 1, 2016, Jr Co. has the following balances: Defined benefit obligation…

A: Fair Value is a term referred to as a broad measure of an asset's worth.It is not as same as market…

Concept explainers

Employee Benefits

In an organization employees are the most important resource and most important asset. They can lead an organization to the sky or can be the reason for unsuccessful of business. Therefore, it is very much important that employees of an organization should be satisfied by the environment of the organization and most importantly with the salary, wages incentives, etc.

Question

On January 1, 2016, Ju Co. has the following balances:
Defined benefit obligation
P2,100,000
Fair value of plan assets
1,800,000
The discount rate is 10%. Other data related to the pension plan for 2016 are:
Service cost
P180,000
Past service costs due to increase in benefits
60,000
Contributions
300,000
Benefits paid
105,000
Actual return on plan assets
237,000
Net gain on liability
18,000
The fair value of plan assets at December 31, 2016 is

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Employee Compensations and Benefits

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Blossom Company provides the following information about its defined benefit pension plan Service cost $ 91,800 Contribution to the plan 103,500 Prior service cost amortization 9,400 Actual and expected return on plan assets Benefits paid Plan assets at anuary 1, 2017 Projected benefit obligation at January 1, 2017 Accumulated OCI (PSC) at January 1, 2017 Interest/discount (settlement) rate 63,200 39,700 647,900 712,300 147,400 10 % Compute the pension expense for the year 2017.
Rosaria Co. sponsors a defined benefit pension plan. For the current year ended December 31, thefollowing information relevant to the plan has been accumulated:Defined benefit obligation, 1/1 P11,250,000Fair value of plan assets, 1/1 10,500,000Current service cost 1,050,000Past service cost 2,200,000Actual return on plan assets 600,000Decrease in defined benefit obligation due tochanges in actuarial assumptions300,000Discount rate 8%Requirements:1. In the working papers computations, what balance of plan assets will be determined?2. In the working papers computations, what balance of benefit obligation will be determined?3. Calculate the amount that the entity would recognize in profit or loss for the year in accordancewith the revised PAS 19.4. Calculate the amount that the entity would recognize in other comprehensive income for theyear in accordance with the revised PAS 19.
On January 1, 2016, J Co. has the following balances: Defined benefit obligation P2,100,000 Fair value of plan assets 1,800,000 The discount rate is 10%. Other data related to the pension plan for 2016 are: Service cost P180,000 Past service costs due to increase in benefits 60,000 Contributions 300,000 Benefits paid 105,000 Actual return on plan assets 237,000 Net gain on liability 18,000 The balance of the defined benefit obligation at December 31, 2016 is
On January 1, 2026, Pharoah Co. has the following balances: Projected benefit obligation Fair value of plan assets Service cost The settlement rate is 11%. Other data related to the pension plan for 2026 are: $3650000 Amortization of prior service costs Contributions Benefits paid Actual return on plan assets Amortization of net gain 2350000 $3173000. $988000. O $1650000. O $3010000. $ 340000 90000 465000 190000 385000 18000 The fair value of plan assets disclosed in the notes at December 31, 2026 is
On January 1, 2016, Jr Co. has the following balances: Defined benefit obligation P2,100,000 Fair value of plan assets 1,800,000 The discount rate is 10%. Other data related to the pension plan for 2016 are: Service cost P180,000 Past service costs due to increase in benefits 60,000 Contributions 300,000 Benefits paid 105,000 Actual return on plan assets 237,000 Net gain on liability 18,000 The balance of the defined benefit obligation at December 31, 2016 is
On January 1, 2017, Makoto Co. has the following balances: Projected benefit obligation $2,730,000 Fair value of plan assets 2,340,000 The settlement rate is 10%. Other data related to the pension plan for 2017 are: Service cost $234,000 Amortization of unrecognized prior service costs 77,600 Contributions 390,400 Benefits paid 140,500 Actual return on plan assets 304,500 Amortization of unrecognized net gain 27, 800 The balance of the projected benefit obligation at December 31, 2017 is
On January 1, 2017, Makoto Co. has the following balances: Projected benefit obligation $2,730,000 Fair value of plan assets 2,340,000 The settlement rate is 10%. Other data related to the pension plan for 2017 are: Service cost $234,000 Amortization of unrecognized prior service costs 77,600 Contributions 390,400 Benefits paid 140,500 Actual return on plan assets 304,500 Amortization of unrecognized net gain 27, 800
On January 1, 2017, Roca Co. has the following balances: Projected benefit obligation $3,730,000 Fair value of plan assets 3,340,000 The settlement rate is 10%. Other data related to the pension plan for 2017 are: Service cost $334,000 Amortization of unrecognized prior service costs 78,000 Contributions 390,000 Benefits paid 150,500 Actual return on plan assets 338,100 Amortization of unrecognized net gain 33,400 The balance of the projected benefit obligation for Roca at December 31, 2017 is
Pension data for Barry Financial Services Inc., include the following: ($ in thousands)Discount rate, 7%Expected return on plan assets, 10%Actual return on plan assets, 9%Service cost, 2021 $ 310January 1, 2021:Projected benefit obligation 2,300Accumulated benefit obligation 2,000Plan assets (fair value) 2,400Prior service cost—AOCI (2021 amortization, $25) 325Net gain—AOCI (2021 amortization, $6) 330There were no changes in actuarial assumptions.December 31, 2021:Cash contributions to pension fund, December 31, 2021 245Benefit payments to retirees, December 31, 2021…
Wildhorse Company provides the following information about it defined benefit pension plan for the year 2025. Service cost $89, 200 Contribution to the plan amortization 10,300 Actual and expected return on plan assets 64, 100 Benefits paid 40, 100 Plan assets at January 1, 2025 632, 500 Projected benefit obligation at January 1, 2025 702,600 Accumulated OCI (PSC) at January 1, 2025 151,200 Interest/discount (settlement) rate 11% Compute the pension expense for the year 2025
On January 1, 2021, Pharoah Co. has the following balances: Projected benefit obligation Fair value of plan assets Service cost The settlement rate is 11%. Other data related to the pension plan for 2021 are: $3700000 Benefits paid Actual return on plan assets Amortization of net gain 3200000 Amortization of prior service costs due to increase in benefits Contributions O $3644000. O $3890000. O $4115000. O $3700000. The fair value of plan assets at December 31, 2021 is $320000 108000 520000 245000 415000 34000
On January 1, 2021, Cullumber Co. has the following balances: Projected benefit obligation Fair value of plan assets Service cost The settlement rate is 11%. Other data related to the pension plan for 2021 are: $3550000 Benefits paid Actual return on plan assets Amortization of net gain 3050000 Amortization of prior service costs due to increase in benefits Contributions O $3987500. O $3940500. O $4241500. O $4015500. $301000 101000 501000 226000 The balance of the projected benefit obligation at December 31, 2021 is 396000 30100