Sheffield, Inc. is a furniture manufacturing company with 50 employees. Recently, after a long negotiation with the local labor union, the company decided to initiate a pension plan as a part of its compensation plan. The plan will start on January 1, 2025. Each employee covered by the plan is entitled to a pension payment each year after retirement. As required by accounting standards, the controller of the company needs to report the pension obligation (liability). On the basis of a discussion with the supervisor of the Personnel Department and an actuary from an insurance company, the controller develops the following information related to the pension plan.
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- Pronghorn, Inc. is a furniture manufacturing company with 50 employees. Recently, after a long negotiation with the local labor union, the company decided to initiate a pension plan as a part of its compensation plan. The plan will start on January 1, 2025. Each employee covered by the plan is entitled to a pension payment each year after retirement. As required by accounting standards, the controller of the company needs to report the pension obligation (liability). On the basis of a discussion with the supervisor of the Personnel Department and an actuary from an insurance company, the controller develops the following information related to the pension plan. Average length of time to retirement Expected life duration after retirement Total pension payment expected each year after retirement for all employees. Payment made at the end of the year. 15 years 11 years $816,100 per year The interest rate to be used is 8%. Click here to view factor tables. On the basis of the information…Flint, Inc. is a furniture manufacturing company with 50 employees. Recently, after a long negotiation with the local labor union, the company decided to initiate a pension plan as a part of its compensation plan. The plan will start on January 1, 2025. Each employee covered by the plan is entitled to a pension payment each year after retirement. As required by accounting standards, the controller of the company needs to report the pension obligation (liability). On the basis of a discussion with the supervisor of the Personnel Department and an actuary from an insurance company, the controller develops the following information related to the pension plan. Average length of time to retirement Expected life duration after retirement Total pension payment expected each year after retirement for all employees. Payment made at the end of the year. The interest rate to be used is 9%. Click here to view factor tables. The present value of pension obligation (liability) On the basis of the…Nerwin, Inc. is a furniture manufacturing company with 50 employees. Recently, after a long negotiation with the local labor union, the company decided to initiate a pension plan as a part of its compensation plan. The plan will start on January 1, 2020. Each employee covered by the plan is entitled to a pension payment each year after retirement. As required by accounting standards, the controller of the company needs to report the pension obligation (liability). On the basis of a discussion with the supervisor of the Personnel Department and an actuary from an insurance company, the controller develops the following information related to the pension plan. Average length of time to retirement 15 years Expected life duration after retirement 10 years Total pension payment expected each year after retirement for all employees. Payment made at the end of the year. $700,000 per year The interest rate to be used is 8%. Instructions On the basis of the information above,…
- Flounder, Inc. is a furniture manufacturing company with 50 employees. Recently, after a long negotiation with the local labor union, the company decided to initiate a pension plan as a part of its compensation plan. The plan will start on January 1, 2020. Each employee covered by the plan is entitled to a pension payment each year after retirement. As required by accounting standards, the controller of the company needs to report the pension obligation (liability). On the basis of a discussion with the supervisor of the Personnel Department and an actuary from an insurance company, the controller develops the following information related to the pension plan. Average length of time to retirement Expected life duration after retirement Total pension payment expected each year after retirement for all employees. Payment made at the end of the year. 15 years 11 years $811.400 per year The interest rate to be used is 8%. Click here to view factor tables On the basis of the information…Larkspur, Inc. is a furniture manufacturing company with 50 employees. Recently, after a long negotiation with the local labor union, the company decided to initiate a pension plan as a part of its compensation plan. The plan will start on January 1, 2020. Each employee covered by the plan is entitled to a pension payment each year after retirement. As required by accounting standards, the controller of the company needs to report the pension obligation (liability). On the basis of a discussion with the supervisor of the Personnel Department and an actuary from an insurance company, the controller develops the following information related to the pension plan. Average length of time to retirement 15 years Expected life duration after retirement 10 years Total pension payment expected each year after retirement for all employees. Payment made at the end of the year. $812,100 per year The interest rate to be used is 9%. Click here to view factor tables On the basis of the information…LeMond has 50 full time employees. Recently the company decided to initiate a pension plan as part of its employee compensation package. The pension plan will start on January 1, 2019. As required by accounting standards, the controller of the company needs to report the pension obligation (liability). The following estimates have been collected: Average length of time to retirement 15 years Expected life duration after retirement 10 years Total pension payment expected each year after retirement for all employees $800,000 annually On the basis of the information above, determine the present value of the pension liability. Assume the payment is made at the end of the year and the interest rate is 8 percent.
- Martinez, Inc. is a furniture manufacturing company with 50 employees. Recently, after a long negotiation with the local labor union, the company decided to initiate a pension plan as a part of its compensation plan. The plan will start on January 1, 2020. Each employee covered by the plan is entitled to a pension payment each year after retirement. As required by accounting standards, the controller of the company needs to report the pension obligation (liability). On the basis of a discussion with the supervisor of the Personnel Department and an actuary from an insurance company, the controller develops the following information related to the pension plan. Average length of time to retirement 15 years Expected life duration after retirement 10 years Total pension payment expected each year after retirement for all employees. Payment made at the end of the year. $847,700 per year The interest rate to be used is 10%. Click here to view factor tables On the basis of the information…Pharoah Inc. has sponsored a noncontributory, defined benefit pension plan for its employees since 2012. Prior to 2025, cumulative net pension expense recognized equaled cumulative contributions to the plan. Other relevant information about the pension plan on January 1, 2025, is as follows. 1. 2. The company has 200 employees. All these employees are expected to receive benefits under the plan. The average remaining service life per employee is 12 years. (a) The projected benefit obligation amounted to $4,906,600 and the fair value of pension plan assets was $2,941,000. The market-related asset value was also $2,941,000. Unrecognized prior service cost was $1,965,600. On December 31, 2025, the projected benefit obligation and the accumulated benefit obligation were $4,792,000 and $3,961,000, respectively. The fair value of the pension plan assets amounted to $4,126,040 at the end of the year. A 10% settlement rate and a 10% expected asset return rate were used in the actuarial present…Aylmer has the following pension plans for employees: Defined Contribution Plan: For this plan, payments are made to the plan in January for the prior year. Aylmer contributes to this plan, on behalf of the qualified employees. The employees do not contribute. A payment will be made in January 2021 for all of 2020 defined contribution pension related expenses. Remittances are only required to be made annually as is the corresponding accrual. The entry for accruing the pension expense for 2020 is to be made in December 2020. Please see the following info, perform any required calculations, and create journal entries Employees participating in the Defined-Contribution Plan: % of salary contributed Annual Salary on behalf of employees Expense Brian Dennis President $ 135,200.00 5% Jane Ferris Controller $ 93,600.00 4% Lin Wang Sales $ 78,000.00 4% Hannah Carter Sales $ 78,000.00 4% Jessica Lampman Supervisor $…
- Crane Inc. has a defined - benefit pension plan covering its 216 employees. Crane agrees to amend its pension benefits. The prior service cost associated with the amendment is $140000. The employees are grouped according to expected years of retirement, as follows: Group Number of Employees Expected Retirement on December 31 A 24 2025 B 54 2026 C 94 2027 D 44 2028 What is the service years total for the year ending December 31, 2026 and what is the overall total number of service years? Select answer from the options below 192 for 2026 and 590 overall. 54 for 2026 and 216 overall. 54 for 2026 and 590 overall. 192 for 2026 and 864 overall.Jay Company has had a defined benefit pension plan for several years. At the beginning of 2019, Jay amended the plan; this amendment provided for increased benefits to employees based on services rendered in prior periods. The prior service cost related to this amendment totaled $88,000. As a result, the projected benefit obligation increased. Jay decided not to fund the increased obligation at the time of the amendment, but rather to increase its periodic year-end contributions to the pension plan. The following information for 2019 has been provided by Jay’s actuary and funding agency and obtained from a review of its accounting records: Projected benefit obligation (12/31) $808,090 Service cost 183,000 Discount rate 9% Cumulative net loss (1/1) 64,500 Company contribution to pension plan (12/31) 200,000 Projected benefit obligation (1/1)* 513,000 Plan assets, fair value (12/31) 698,000 Accrued pension cost (liability) (1/1) 33,000* Expected (and actual) return…Concord Company has five employees participating in its defined benefit pension plan. Expected years of future service for these employees at the beginning of 2020 are as follows. Employee Future Years of Service Jim 3 Paul 4 Nancy 5 Dave 6 Kathy 6 On January 1, 2020, the company amended its pension plan, increasing its projected benefit obligation by $83,520.Compute the amount of prior service cost amortization for the years 2020 through 2025 using the years-of-service method, setting up appropriate schedules. Year Annual Amortization 2020 $enter a dollar amount 2021 enter a dollar amount 2022 enter a dollar amount 2023 enter a dollar amount 2024 enter a dollar amount 2025 enter a dollar amount