Elton Company | ||||||||||||||
Pension Worksheet | ||||||||||||||
General Journal Entries | Memo Record | |||||||||||||
Items | Annual Expense | Cash | OCI prior service cost | OCI gain/loss | Post retirement Assets/Liability | Accumulated Post retirement benefit obligation | Fair Value of Plan Assets | |||||||
Balance | $ 22,50,000.00 | Cr | $ 22,50,000.00 | Dr | ||||||||||
Service Cost | $ 75,000.00 | Dr | $ 75,000.00 | Cr | ||||||||||
Interest Expense=($2250000*10%) | $ 2,25,000.00 | Dr | $ 2,25,000.00 | Cr | ||||||||||
Actual Return | $ 1,40,000.00 | Cr | $ 1,40,000.00 | DR | ||||||||||
Unexpected losss=($2250000*8%-140000) | $ 40,000.00 | Cr | $ 40,000.00 | Dr | ||||||||||
Contributions | $ 45,000.00 | Cr | $ 45,000.00 | Dr | ||||||||||
Benefits | $ 40,000.00 | Dr | $ 40,000.00 | Cr | ||||||||||
Journal Entry | $ 1,20,000.00 | Dr | $ 45,000.00 | Cr | $ - | $ 40,000.00 | Dr | $ 1,15,000.00 | Cr | |||||
Accumulated OCI/(G/L) | ||||||||||||||
Balance on December 31st | $ 40,000.00 | Dr | $ 1,15,000.00 | Cr | $ 25,10,000.00 | Cr | $ 23,95,000.00 | Dr | ||||||
Additional post retirement benefit obligation 1/1/2018 | $ 1,75,000.00 | Dr | $ 1,75,000.00 | Cr | ||||||||||
Balance January 1,2018 | $ 26,85,000.00 | Cr | ||||||||||||
Service Cost | $ 85,000.00 | Dr | $ 85,000.00 | Cr | ||||||||||
Interest Expense=($2685000*10%) | $ 2,68,500.00 | Dr | $ 2,68,500.00 | Cr | ||||||||||
Actual Return | $ 1,20,000.00 | Cr | $ 1,20,000.00 | DR | ||||||||||
Unexpected loss=($2395000*6%-120000) | $ 23,700.00 | Cr | $ 23,700.00 | Dr | ||||||||||
Amortization of Prior service cost | $ 12,000.00 | Dr | $ 12,000.00 | Cr | ||||||||||
Contributions | $ 35,000.00 | Cr | $ 35,000.00 | Dr | ||||||||||
Benefits | $ 45,000.00 | Dr | $ 45,000.00 | Cr | ||||||||||
Journal Entry | $ 2,21,800.00 | Dr | $ 35,000.00 | Cr | $ 1,63,000.00 | Dr | $ 23,700.00 | Dr | $ 3,73,500.00 | Cr | ||||
Accumulated OCI December 31st,2017 | $ 40,000.00 | Dr | ||||||||||||
Balance on December 31st,2018 | $ 1,63,000.00 | Dr | $ 63,700.00 | Dr | $ 4,88,500.00 | Cr | $ 29,93,500.00 | Cr | $ 25,05,000.00 | Dr | ||||
b) | Journal Entry 2017 | |||||||||||||
General,Journal | Debit | Credit | ||||||||||||
Post retirement Expense | $ 1,20,000.00 | |||||||||||||
Other comprehensive Income | $ 40,000.00 | |||||||||||||
To Cash | $ 45,000.00 | |||||||||||||
To Post retirement Assets/Liability | $ 1,15,000.00 | |||||||||||||
c) | Journal Entry 2018 | |||||||||||||
General,Journal | Debit | Credit | ||||||||||||
Other comprehensive Income(PSC) | $ 1,63,000.00 | |||||||||||||
Other comprehensive Income(G/L) | $ 23,700.00 | |||||||||||||
Post retirement expense | $ 2,21,800.00 | |||||||||||||
To Cash | $ 35,000.00 | |||||||||||||
To Post retirement Assets/Liability | $ 3,73,500.00 | |||||||||||||
*P20-14 (L06,7) (Postretirement Benefit Worksheet-2 Years) Elton Co. has the following postretirement benefit plan bal ances...
Elton Co. has the following postretirement benefit plan balances on January 1, 2017. Accumulated postretirement benefit obligation $2,250,000 Fair value of plan assets 2,250,000 The interest (settlement) rate applicable to the plan is 10%. On January 1, 2018, the company amends the plan so that prior service costs of $175,000 are created. Other data related to the plan are: 2017 2018 Service costs $75,000 $85,000 Prior service costs amortization 0 12,000 Contributions (funding) to the plan 45,000 35,000 Benefits paid...
E20-19 (Lo6,7) (Postretireme postretirement benefit plan for the year 2017. nt Benefit Expense Computation) Kreter Co. provides the following information about its Service cost Contribution to the plarn Actual and expected return on plan assets Benefits paid Plan assets at January 1, 2017 Accumulated postretirement benefit obligation $ 45,000 10,000 11,000 20,000 110,000 at January 1, 2017 Discount rate 30,000 8% Instructions Compute the postretirement benefit expense for 2017. *E20-20 (L06,7) (Postretirement Benefit Worksheet) Using the information in E20-19, prepare...
P20-4B (L01,2,3,4) (Pension Expense, Journal Entries for 2 Years) Biker Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2017 and 2018. 2018 $462,000 500,000 Plan assets (fair value), December 31 Projected benefit obligation, January 1 Pension asset/liability, January 1 Prior service cost, January 1 Service cost Actual and expected return on plan assets Amortization of prior service cost Contributions (funding) Accumulated benefit obligation, December 31 Interest/ settlement rate 2017 $396,000...
Exercise 20-23 Sunland Co. provides the following information about its postretirement benefit plan for the year 2017. Service cost Prior service cost amortization Contribution to the plan Actual and expected return on plan assets Benefits paid Plan assets at January 1, 2017 Accumulated postretirement benefit obligation at January 1, 2017 Accumulated OCI (PSC) at January 1, 2017 Discount rate $99,000 3,100 56,900 64,700 38,400 711,400 761,000 93,100 Dr. 9% Prepare a worksheet inserting January 1, 2017, balances, showing December 31,...
Data pertaining to the postretirement health care benefit plan of Sterling Properties include the following for 2018: ($ in 0008) $ 136 700 Service cost Accumulated postretirement benefit obligation, January 1 Plan assets (fair value), January 1 Prior service cost-AOCI Net gain-AOCI (2018 amortization, $2) Retiree benefits paid end of year) Contribution to health care benefit fund (end of year) Discount rate, 8% Return on plan assets (actual and expected), 10% none 100 200 Required: 1. Determine the postretirement benefit...
Exercise 20-23 Riverbed Co. provides the following information about its postretirement benefit plan for the year 2017. Service cost $88,200 Prior service cost amortization 2,900 Contribution to the plan 51,400 Actual and expected return on plan assets 61,900 Benefits paid 38,400 Plan assets at January 1, 2017 699,400 Accumulated postretirement benefit obligation at January 1, 2017 756,800 Accumulated OCI (PSC) at January 1, 2017 101,900 Dr. Discount rate 9 % Prepare a worksheet inserting January 1, 2017, balances, showing December...
Exercise 17-27 Postretirement benefits; components of postretirement benefit expense (LO17-11] Data pertaining to the postretirement health care benefit plan of Sterling Properties include the following for 2018: ($ in wees) $ 142 1.es 50 Service cost Accumulated postretirement benefit obligation, January 1 Plan assets (fair value), January 1 Prior service cost-AOCI Net gain-AOCI (2018 amortization, $1) Retiree benefits paid (end of year) Contribution to health care benefit fund (end of year) Discount rate, 6% Return on plan assets (actual and...
"Problem 20-1 On January 1, 2017, Pina Company has the following defined benefit pension plan balances Projected benefit obligation Fair value of plan assets $4,441,000 4,230,000 The interest (settlement) rate applicable to the plan is 10%. On January 1, 2018, the company amends its pension agreement so that prior service costs of $495,000 are created. Other data related to the pension plan are as follows. 2017 Service cost Prior service cost amortization Contributions (funding) to the plan Benefits paid Actual...
On January 1, 2017, Sarasota Company has the following defined benefit pension plan balances. Projected benefit obligation Fair value of plan assets $4.434,000 4,230,000 2018, the company amends its pension agreement so that prior service costs of $492,000 are created. Other data related to the pension plan are as follows The interest (settlement) rate applicable to the plan is 10%. On January 2017 2018 $150,000 cost amortization 90.000 Contributions (funding) to the plan 242,000 285,000 Benefits paid 203.000 281,000 Actual...
Problem 20-1 On January 1, 2017, Kingbird Company has the following defined benefit pension plan balances. Projected benefit obligation Fair value of plan assets $4,508,000 4,250,000 The interest (settlement) rate applicable to the plan is 10%. On January 1, 2018, the company amends its pension agreement so that prior service costs of $493,000 are created. Other data related to the pension plan are as follows. 2017 $148,000 Service cost Prior service cost amortization Contributions (funding) to the plan Benefits paid...