Problem 17-9 (Static) Determine pension expense; PBO; plan assets; net pension asset or liability;journal entries [LO17-3, 17-4, 17-5, 17-6 ,17-7 ,17-8]Check my workU.S. Metallurgical Inc. reported the following balances in its financial statements and disclosure notes at December 31, 2020.Plan assets$400,000320,000Projected benefit obligationU.S.M's actuary determined that 2021 service cost is $60,000. Both the expected and actual rate of return on plan assets are 9%. Theinterest (discount) rate is 5%. U.S.M. contributed $120,000 to the pension fund at the end of 2021, and retirees were paid $44,000 fromplan assets. (Enter your answers in thousands (L.e., 10,000 should be entered as 10).)Required:1. What is the pension expense at the end of 2021?2. What is the projected benefit obligation at the end of 2021?3. What is the plan assets balance at the end of 2021?4. What is the net pension asset or net pension liability at the end of 2021?5. Prepare journal entries to record the (a) pension expense, (b) funding of plan assets, and (c) retiree benefit payments.Complete this question by entering your answers in the tabs below.Req 1 to 4Req 51. What is the pension expense at the end of 2021?2 What is the proiected henefit obliaation at the end of 202122 of 33.Next >< PrevQuestion no.pages1 Question no...pages

Hi student Since there are multiple subparts, we will answer only first three subparts.

Answered: Problem 17-9 (Static) Determine pension…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter12: Liabilities: Off-balance-sheet Financing, Retirement Benefits, And Income Taxes

Section: Chapter Questions

Problem 20E

See similar textbooks

Similar questions

Exercise 17-5 (Algo) Determine pension plan assets [LO17-4] The following data relate to Ramesh Company's defined benefit pension plan: ($ in millions) $790 Plan assets at fair value, January 1 Expected return on plan assets Actual return on plan assets Contributions to the pension fund (end of year) Amortization of net loss Pension benefits paid (end of year) Pension expense 79 63 138 16 24 110 Required: Determine the amount of pension plan assets at fair value on December 31. (Enter your answers in millions. Amounts to be c should be indicated with a minus sign.) Answer is complete but not entirely correct. Pension Plan Assets 790 Beginning of the year A
Items Balance, Jan. 1, 2025 (a) Service Cost (b) Interest Cost (c) Actual Return (d) Contributions (e) Benefits Journal Entry for 2025 Balance, Dec. 31, 2025 The service cost for 2025 is O $115000. O $6000. O $37000. O $38000. Annual Pension Expense ?? dr 15000 dr General Journal Entries 16000 cr $37000 Pharoah Corporation Pension Worksheet Cash $37000 cr ?? Show Transcribed Text Pension Asset/ Liability ?? Memo Record Projected Benefit Obligation $115000 cr $115000 dr ?? Plan Assets ??
Analyzing Changes in Plan Assets and PBO The following information pertains to a company’s defined benefit plan. Balance Fair value of plan assets, Jan. 1, 2020 $2,000 Dr. Fair value of plan assets, Dec. 31, 2020 2,250 Dr. Projected benefit obligation, Jan. 1, 2020 2,000 Cr. Net pension asset (liability), Dec. 31, 2020 80 Cr. Activity 2020 Actual return on plan assets $120 Contributions to plan assets 180 Service cost 200 Other Discount rate 8% Expected rate of return on plan assets 7% Required a. Calculate benefits paid to retirees in 2020. Note: Do not use a negative sign with your answer.$Answer b. Calculate any actuarial gain or loss on the PBO in 2020.Note: Use a negative sign to indicate a loss. $Answer
Exercise 17-5 (Algo) Determine pension plan assets [LO17-4] The following data relate to Ramesh Company's defined benefit pension plan: ($ in millions) $790 Plan assets at fair value, January 1 Expected return on plan assets Actual return on plan assets 79 63 Contributions to the pension fund (end of year) 138 Amortization of net loss 16 Pension benefits paid (end of year) Pension expense 24 110 Required: Determine the amount of pension plan assets at fair value on December 31. (Enter your answers in millions. Amounts to be dec should be indicated with a minus sign.)
Exercise 17-5 (Algo) Determine pension plan assets [LO17-4] The following data relate to Ramesh Company's defined benefit pension plan: ($ in millions) $790 79 Plan assets at fair value, January 1 Expected return on plan assets Actual return on plan assets Contributions to the pension fund (end of year) Amortization of net loss Pension benefits paid (end of year) Pension expense 63 138 16 24 110 Required: Determine the amount of pension plan assets at fair value on December 31. (Enter your answers in millions. Amounts to be c should be indicated with a minus sign.) Answer is complete but not entirely correct. Pension Plan Assets 790 Beginning of the year Next
Problem 26-3 (IAA) Rachel Company revealed the following information for the current year: Fair value of plan assets-January 1 Projected benefit obligation-January 1 Current service cost Past service cost Actual return on plan assets Contribution to the plan Benefits paid to retirees Discount rate 1. What amount should be reported as employee benefit expense? a. 2,000,000 2,200,000 c. 2,500,000 d. 1,750,000 2. What amount should be reported as fair value of plan assets on December 31? a. 7,000,000 b. 6,500,000 c. 6,200,000 d. 5,500,000 5,000,000 7,500,000 1,450,000 300,000 500,000 1,500,000 800,000 10% 3. What amount should be reported as projected benefit obligation on December 31? a. 9,250,000 b. 9,700,000 c. 8,950,000 d. 9,200,000 4. What amount should be reported as accrued benefit cost on December 31? a. 3,000,000 b. 2,500,000 c. 2,000,000 d. 1,500,000
d. The following information pertains to Lasting Inc.'s defined benefit plan. Description Projected benefit obligation Plan assets at fair value Accumulated OCI-Pension Gain/Loss Accumulated OCI-Prior Service Cost Accumulated benefit obligation On Lasting Inc's December 31 balance sheet, what amounts would the company report for assets, liabilities and stockholders' equity? Select one: Assets Liabilities Stockho $0 $13,000 Assets Liabilities $132,000 $145,000 Assets Liabilities Stock SO $13,000 Assets Liabilities $132,000 $145,000 Assets Liabilities Stockh $132,000 $128,000 Equity $70,000 $145,000 Cr. 132,000 DT. 18,000 Dr. 88,000 Cr. 128,000 Cr. $70,000 s Equity $0 TULEV SO $70,000
Determine the missing amounts in the 2020 pension worksheet, indicating whether the amounts are debits or credits. (Enter all amounts as positive.) Pension Worksheet—Riverbed Inc. General Journal Entries Memo Record Annual PensionExpense Cash OCI—PriorService Cost OCI—Gain/Loss Pension Asset/Liability Projected BenefitObligation PlanAssets Balance, Jan. 1, 2020 $1,298 Cr. $3,304 $2,006 Service cost $ 590 Interest cost 330…
CHOOSE THE LETTER OF THE CORRECT ANSWER What is the employee benefit expense for the current year? a. 1,180,000b. 2,100,000c. 1,850,000d. 1,050,000 What is the remeasurement gain or loss on plan assets on Dec. 31? a. 670,000 gainb. 670,000 lossc. 650,000 gaind. 650,000 loss
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.
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 $13…
NOTE 17: EMPLOYEE BENEFIT PLANS (in part) ($ in millions) Changes in projected benefit obligation: Obligation at beginning of period Service cost Interest cost Pension Benefits 2020 2019 $ 648 1 $ 637 1 31 34 Actuarial (gain) loss Benefits paid Obligation at end of period Change in plan assets: 54 37 (50) (50) $ 684 $ 659 Fair value of plan assets at beginning of period Actual return (loss) on plan assets* $ 496 $ 431 70 52 Employer contribution 24 74 Benefits paid (50) (50) Fair value of plan assets at end of period 540 507 Net liability recognized at end of period $ (144) $ (152) *Expected return $30 and $29 in 2020 and 2019, respectively Required: 1. What amount did Maur report in its balance sheet related to the pension plan at June 30, 2020? 2. When calculating pension expense at June 30, Maur included $10 million in its income statement as the amortization of unrecognized net actuarial loss (net loss-AOCI). This AOCI account had a balance of $350 million at the beginning of the…

SEE MORE QUESTIONS

Recommended textbooks for you

Financial Accounting Intro Concepts Meth/Uses

Finance

ISBN:

9781285595047

Author:

Weil

Publisher:

Cengage

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

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

Publisher:

Cengage Learning

Financial Accounting Intro Concepts Meth/Uses

Finance

ISBN:

9781285595047

Author:

Weil

Publisher:

Cengage

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

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

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS