Homework Answers
Question 7
The interest cost for 2020 is $158,640
Question 8
The actual return on plan assets in 2020 is$122,000
Question 9
The unexpected gain or loss on plan assets in 2020 is$127,440 loss
Question 10
The amount of actuarial gain or loss amortized in 2020 ,and its effect on reported pension expense is$15,025 decrease to pension expense
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QUESTION 7 The following information relates to the defined benefit pension plan of Nelson, Inc.: Projected...
The following data relates to CheeseFactory Inc's pension plan for the year 2020: Defined benefit obligation...
The following data relates to CheeseFactory Inc's pension plan for the year 2020: Defined benefit obligation at January 1, 2020 - $627,000 Fair value of plan assets at January 1, 2020 - $600,000 Current service cost - $82,000 Cost of past service benefits granted effective December 31, 2020 - $34,000 Actual return on plan assets - $70,000 Contributions to plan - $87,000 Benefits paid - $ 45,000 Actuarial loss - $39,000 Interest (discount) rate - 8% Instructions: (a) Prepare a...
Turner Inc. provides a defined benefit pension plan to its employees. The company has 150 employees....
Turner Inc. provides a defined benefit pension plan to its employees. The company has 150 employees. The remaining amortization period at December 31, 2016, for prior service cost is 5 years. The average remaining service life of employees is 11 years at January 1, 2017, and 10 years at December 31, 2017. The AOCI—net actuarial (gain) loss was zero at December 31, 2016. Turner smooths recognition of its gains and losses when computing its market-related value to compute expected return....
Preparing Pension Entries and Pension Worksheet Rollo Company has a defined benefit pension plan. At the...
Preparing Pension Entries and Pension Worksheet Rollo Company has a defined benefit pension plan. At the end of the current reporting period, December 31, 2020, the following information was available: Projected benefit obligation Balance, Jan. 1, 2020 $300,000 Service cost 80,000 Interest cost ($150,000 x 10% discount rate) 30,000 Change in actuarial assumptions on Dec. 31, 2020 (800) Pension benefits paid (84,000) Balance, Dec. 31, 2020 $325,200 Accumulated benefit obligation $240,000 Vested benefit obligation $80,000 Plan assets Balance, Jan. 1,...
The following information relates to the 2005 activity of the defined benefit pension plan of Linsey...
The following information relates to the 2005 activity of the defined benefit pension plan of Linsey Corp., a company whose stock is publicly traded: Service cost $150,000 Expected and actual return on plan assets 40,000 Interest cost on pension benefit obligation 82,000 Amortization of actuarial loss 15,000 Fair value of plan assets at year end 800,000 Accumulated benefit obligation at year end . 750,000 January 1 balance of Prepaid/Accrued Pension Cost Employer contribution to plan during 2005 250,000 Required: 1....
The following information relates to the 2005 activity of the defined benefit pension plan of Linsey...
The following information relates to the 2005 activity of the defined benefit pension plan of Linsey Corp., a company whose stock is publicly traded: Service cost $150,000 Expected and actual return on plan assets 40,000 Interest cost on pension benefit obligation 82,000 Amortization of actuarial loss 15,000 Fair value of plan assets at year end 800,000 Accumulated benefit obligation at year end 750,000 January 1 balance of Prepaid/Accrued Pension Cost Employer contribution to plan during 2005 250,000 Required: 1. Determine...
The following information relates to the 2005 activity of the defined benefit pension plan of Linsey...
The following information relates to the 2005 activity of the defined benefit pension plan of Linsey Corp., a company whose stock is publicly traded: Service cost $150,000 Expected and actual return on plan assets 40,000 Interest cost on pension benefit obligation 82,000 Amortization of actuarial loss 15,000 Fair value of plan assets at year end 800,000 Accumulated benefit obligation at year end 750,000 January 1 balance of Prepaid/Accrued Pension Cost Employer contribution to plan during 2005 250,000 Required: 1. Determine...
The following information relates to the contributory, defined pension plan of Klarbrun Inc. Account Balances Projected...
The following information relates to the contributory, defined pension plan of Klarbrun Inc. Account Balances Projected Benefit Obligation.. Plan Assets.. Accumulated OCI—Prior Service Cost... Jan. 1, 2020 $75,000 Cr. 78,750 Dr. 49,500 Dr. . Activity 2020 Service cost ........ $ 49,000 Interest cost 6,000 Prior service cost amortization. 500 Actual return on plan assets (same as expected return) 4.725 Cash funding by company 37,500 Cash funding by plan participants 10,000 Pension benefits paid to retirees 5,000 Net income... 500,000 Required...
Pension Complete the following. Scottsdale Corp. sponsors a defined benefit pension plan for its employees. On...
Pension Complete the following. Scottsdale Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2017, the following balances relate to this plan. Plan assets $480,000 Projected benefit obligation 625,000 Accumulated OCI (PSC) 100,000 Dr. Accumulated OCI (Gain/Loss) 85,000 Cr. As a result of the operation of the plan during 2017, the following additional data are provided by the actuary: Service cost for 2017 $90,000 Settlement rate 9% Actual return on plan assets in 2017 57,000 Expected...
* Question 6 Cheyenne Inc. has sponsored a noncontributory, defined benefit pension plan for its employees...
* Question 6
Cheyenne Inc. has sponsored a noncontributory, defined benefit
pension plan for its employees since 1997. Prior to 2020,
cumulative net pension expense recognized equaled cumulative
contributions to the plan. Other relevant information about the
pension plan on January 1, 2020, is as follows.
1.
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.
2.
The projected benefit obligation amounted to...
Coronado Company sponsors a defined benefit pension plan for its employees. The following data relate to...
Coronado Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2020 in which no benefits were paid. 1. The actuarial present value of future benefits earned by employees for services rendered in 2020 amounted to $56,100. Minimize global navigation res a contribution to the pension trustee amounting to $136,572 for 2020. 3. As of January 1, 2020, the company had a projected benefit obligation of $903,400,...
The following data relates to CheeseFactory Inc's pension plan for the year 2020: Defined benefit obligation at January 1, 2020 - $627,000 Fair value of plan assets at January 1, 2020 - $600,000 Current service cost - $82,000 Cost of past service benefits granted effective December 31, 2020 - $34,000 Actual return on plan assets - $70,000 Contributions to plan - $87,000 Benefits paid - $ 45,000 Actuarial loss - $39,000 Interest (discount) rate - 8% Instructions: (a) Prepare a...
Preparing Pension Entries and Pension Worksheet Rollo Company has a defined benefit pension plan. At the end of the current reporting period, December 31, 2020, the following information was available: Projected benefit obligation Balance, Jan. 1, 2020 $300,000 Service cost 80,000 Interest cost ($150,000 x 10% discount rate) 30,000 Change in actuarial assumptions on Dec. 31, 2020 (800) Pension benefits paid (84,000) Balance, Dec. 31, 2020 $325,200 Accumulated benefit obligation $240,000 Vested benefit obligation $80,000 Plan assets Balance, Jan. 1,...
The following information relates to the 2005 activity of the defined benefit pension plan of Linsey Corp., a company whose stock is publicly traded: Service cost $150,000 Expected and actual return on plan assets 40,000 Interest cost on pension benefit obligation 82,000 Amortization of actuarial loss 15,000 Fair value of plan assets at year end 800,000 Accumulated benefit obligation at year end . 750,000 January 1 balance of Prepaid/Accrued Pension Cost Employer contribution to plan during 2005 250,000 Required: 1....
The following information relates to the 2005 activity of the defined benefit pension plan of Linsey Corp., a company whose stock is publicly traded: Service cost $150,000 Expected and actual return on plan assets 40,000 Interest cost on pension benefit obligation 82,000 Amortization of actuarial loss 15,000 Fair value of plan assets at year end 800,000 Accumulated benefit obligation at year end 750,000 January 1 balance of Prepaid/Accrued Pension Cost Employer contribution to plan during 2005 250,000 Required: 1. Determine...
The following information relates to the 2005 activity of the defined benefit pension plan of Linsey Corp., a company whose stock is publicly traded: Service cost $150,000 Expected and actual return on plan assets 40,000 Interest cost on pension benefit obligation 82,000 Amortization of actuarial loss 15,000 Fair value of plan assets at year end 800,000 Accumulated benefit obligation at year end 750,000 January 1 balance of Prepaid/Accrued Pension Cost Employer contribution to plan during 2005 250,000 Required: 1. Determine...
The following information relates to the contributory, defined pension plan of Klarbrun Inc. Account Balances Projected Benefit Obligation.. Plan Assets.. Accumulated OCI—Prior Service Cost... Jan. 1, 2020 $75,000 Cr. 78,750 Dr. 49,500 Dr. . Activity 2020 Service cost ........ $ 49,000 Interest cost 6,000 Prior service cost amortization. 500 Actual return on plan assets (same as expected return) 4.725 Cash funding by company 37,500 Cash funding by plan participants 10,000 Pension benefits paid to retirees 5,000 Net income... 500,000 Required...
* Question 6
Cheyenne Inc. has sponsored a noncontributory, defined benefit
pension plan for its employees since 1997. Prior to 2020,
cumulative net pension expense recognized equaled cumulative
contributions to the plan. Other relevant information about the
pension plan on January 1, 2020, is as follows.
1.
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.
2.
The projected benefit obligation amounted to...
Coronado Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2020 in which no benefits were paid. 1. The actuarial present value of future benefits earned by employees for services rendered in 2020 amounted to $56,100. Minimize global navigation res a contribution to the pension trustee amounting to $136,572 for 2020. 3. As of January 1, 2020, the company had a projected benefit obligation of $903,400,...
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