Homework Answers
| (a) Pension worksheet | ||||||||||||||
| Howard Corp. | ||||||||||||||
| Pension Worksheet-2017 | ||||||||||||||
| General Journal Entries | Memo Record | |||||||||||||
| Items | Annual Pension Expense | Cash | OCI-Prior Service Cost | OCI-Gain/Loss | Pension Asset/ Liability | Projected Benefit Obligation | Plan Assets | |||||||
| Balance, Jan.1, 2017 | $100,000 | Dr. | $ 65,000 | Cr. | $150,000 | Cr. | $ 600,000 | Cr. | $ 450,000 | Dr. | ||||
| Service cost | $ 75,000 | Dr. | $ 75,000 | Cr. | ||||||||||
| Interest cost (600000*7%) | $ 42,000 | Dr. | $ 42,000 | Cr. | ||||||||||
| Actual return | $ 45,000 | Cr. | $ 45,000 | Dr. | ||||||||||
| Unexpected Gain on assets | $ 9,000 | Dr. | $ 9,000 | Cr. | ||||||||||
| Amortization of PSC | $ 20,000 | Dr. | $ 20,000 | Cr. | ||||||||||
| Contributions | $115,000 | Cr. | $ 115,000 | Dr. | ||||||||||
| Benefits | $ 70,000 | Dr. | $ 70,000 | Cr. | ||||||||||
| Amortization of Net Gain-AOCI | $ 500 | Cr. | $ 500 | Dr | ||||||||||
| Journal entry for 2017 | $ 100,500 | Dr. | $115,000 | Cr. | $ 20,000 | Cr. | $ 8,500 | Cr. | $ 43,000 | Dr. | ||||
| Accumulated OCI, Dec 31, 2016 | $100,000 | Dr. | $ 65,000 | Cr. | ||||||||||
| Balance, Dec 31, 2017 | $ 80,000 | Dr. | $ 73,500 | Cr. | $107,000 | Cr. | $ 647,000 | Cr. | $ 540,000 | Dr. | ||||
| (b) Journal entry | ||
| Account Titles and Explanation | Debit | Credit |
| Pension Expense | $ 100,500 | |
| Pension Asset/ Liability | $ 43,000 | |
| Cash | $ 115,000 | |
| OCI-PSC | $ 20,000 | |
| OCI - Gain | $ 8,500 | |
| (To record pension expense) | ||
| Computation of unexpected gain on assets for the year 2017:- | ||
| Expected return on the plan assets (450000*8%) | $ 36,000 | |
| Less: Actual return on the plan assets | $ 45,000 | |
| Unexpected loss/(gain) on plan assets for 2017 | $ (9,000) | |
| Computation of amount of gain to be amortized from OCI-gain Account in 2017:- | ||
| a. OCI - Gain at 01-01-2017 | $ 65,000 | |
| Projected Benefit Obligation as on 01-01-2017 | $ 600,000 | |
| Plan Assets as on 01-01-2017 | $ 450,000 | |
| Higher value | $ 600,000 | |
| b. Corridor =10% of $650000 | $ 60,000 | |
| c. Excess at the beginning of the year (a-b) | $ 5,000 | |
| d. Average remaining service period | 10 years | |
| e. Amount amortized to 2017 pension expense (c/d) | $ 500 | |
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Problem 5. Pension Worksheet. Howard Corp. sponsors a defined benefit pension plan for its employees. On...
Problem 5. Pension Worksheet. Howard Corp, sponsors a defined benefit pension plan for its employees. On...
Problem 5. Pension Worksheet. Howard Corp, sponsors a defined benefit pension plan for its employees. On January 1, 2017, the following balances related to this plan. Plan assets (market-related value) $450,000 Projected benefit obligation 600,000 Prior service cost 100,000 OCI - Gain 65,000 Average remaining service life in years 10 As a result of the operation of the plan during 2017, the actuary provided the following additional data at December 31, 2017 Service cost for 2017 $75,000 Actual return on...
10 Problem 5. Pension Worksheet. Howard Corp. sponsors a defined benefit pension plan for its employees....
10 Problem 5. Pension Worksheet. Howard Corp. sponsors a defined benefit pension plan for its employees. On January 1. 2017, the following balances related to this plan. Plan assets (market-related value) $450,000 Projected benefit obligation 600,000 Prior service cost 100,000 OCI - Gain 65,000 Average remaining service life in years As a result of the operation of the plan during 2017, the actuary provided the following additional data at December 31, 2017. Service cost for 2017 $75,000 Actual return on...
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Van Persie Corp sponsors a defined-benefit pension plan for its employees. The following balances related to...
Van Persie Corp sponsors a defined-benefit pension plan for its employees. The following balances related to the plan exist on December 31, 2016 Plan assets (market value) Projected benefit obligation Pension asset liability $450,000 600,000 150,000 Cr Van Persie amends the pension plan, effective 1/1/2017, and the actuary inforns Van Persie that the Prior Service Cost associated with the amendment equals $90.000. As a result of the operation of the plan during 2017, the actuary provided the following additional data...
Howard Corp. sponsors a defined-benefit pension plan for its employees. On january 1, 2011, the following...
Howard Corp. sponsors a defined-benefit pension plan for its employees. On january 1, 2011, the following balances are related to its defined-benefit pension plan: Plan assets (market-related value) 520,000 Projected benefit obligation 660,000 Pension assoliability 140,000 Prior service cost 60,000 UEGL - Loss 95,000 On December 31, 2011, the actuary provides the following additional data: Service cost for 2011 72,000 Actual return on plan assets in 2011 42,000 Amortization of prior service cost 8,000 Contributions in 2011 60,000 Benefits paid...
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Hood Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2017, the following balances related to this plan. Plan assets (market-related value) $360,000 Projected benefit obligation 520,000 Pension asset/liability 160,000 Cr. Prior service cost 105,000 Net gain or loss (debit) 71,000 As a result of the operation of the plan during 2017, the actuary provided the following additional data at December 31, 2017. Service cost for 2017 $94,000 Settlement rate, 6% expected return rate, 8% Actual...
Howard Corp. sponsors a defined benefit pension plan for its employees. On january 1, 2011, the...
Howard Corp. sponsors a defined benefit pension plan for its employees. On january 1, 2011, the following balances are related to its defined benefit pension plan: Plan assets (market-related value) 520,000 Projected benefit obligation 660,000 Pension asset liability 140,000 Prior service cost 60,000 UEGL - Loss 95,000 On December 31, 2011, the actuary provides the following additional data: Service cost for 2011 Actual return on plan assets in 2011 Amortization of prior service cost Contributions in 2011 Benefits paid retirees...
Howard Corp. sponsors a defined benefit pension plan for its employees. On january 1, 2011, the...
Howard Corp. sponsors a defined benefit pension plan for its employees. On january 1, 2011, the following balances are related to its defined benefit pension plan: 520,000 660,000 140,000 60,000 95,000 Plan assets (market-related value) Projected benefit obligation Pension asset liability Prior service cost VEGL - Loss On December 31, 2011, the actuary provides the following additional data: Service cost for 2011 Actual return on plan assets in 2011 Amortization of prior service cost Contributions in 2011 Benefits paid retirees...
Howard Corp. sponsors a defined benefit pension plan for its employees. On january 1, 2011, the...
Howard Corp. sponsors a defined benefit pension plan for its employees. On january 1, 2011, the following balances are related to its defined benefit pension plan: 520,000 660,000 140,000 60,000 95,000 Plan assets (market-related value) Projected benefit obligation Pension asset liability Prior service cost VEGL - Loss On December 31, 2011, the actuary provides the following additional data: Service cost for 2011 Actual return on plan assets in 2011 Amortization of prior service cost Contributions in 2011 Benefits paid retirees...
Howard Corp. sponsors a defined-benefit pension plan for its employees. On january 1, 2011, the following...
Howard Corp. sponsors a defined-benefit pension plan for its employees. On january 1, 2011, the following balances are related to its defined-benefit pension plan: Plan assets (market-related value) Projected benefit obligation Pension assetliability Prior service cost VEGL - Loss 520,000 660,000 140,000 60,000 95,000 On December 31, 2011, the actuary provides the following additional data: Service cost for 2011 Actual return on plan assets in 2011 Amortization of prior service cost Contributions in 2011 Benefits paid retirees in 2011 Settlement...
Problem 5. Pension Worksheet. Howard Corp, sponsors a defined benefit pension plan for its employees. On January 1, 2017, the following balances related to this plan. Plan assets (market-related value) $450,000 Projected benefit obligation 600,000 Prior service cost 100,000 OCI - Gain 65,000 Average remaining service life in years 10 As a result of the operation of the plan during 2017, the actuary provided the following additional data at December 31, 2017 Service cost for 2017 $75,000 Actual return on...
10 Problem 5. Pension Worksheet. Howard Corp. sponsors a defined benefit pension plan for its employees. On January 1. 2017, the following balances related to this plan. Plan assets (market-related value) $450,000 Projected benefit obligation 600,000 Prior service cost 100,000 OCI - Gain 65,000 Average remaining service life in years As a result of the operation of the plan during 2017, the actuary provided the following additional data at December 31, 2017. Service cost for 2017 $75,000 Actual return on...
Van Persie Corp, sponsors a defined benefit pension plan for its employees. The following balances related to the plan exist on December 31, 2016. Plan assets (market value) Projected benefit obligation Pension asset/liability $450,000 600,000 150,000 Cr. Van Persie amends the pension plan, effective 1/1/2017, and the actuary informs Van Persie that the Prior Service Cost associated with the amendment equals $90,000 As a result of the operation of the plan during 2017, the actuary provided the following additional data...
Van Persie Corp sponsors a defined-benefit pension plan for its employees. The following balances related to the plan exist on December 31, 2016 Plan assets (market value) Projected benefit obligation Pension asset liability $450,000 600,000 150,000 Cr Van Persie amends the pension plan, effective 1/1/2017, and the actuary inforns Van Persie that the Prior Service Cost associated with the amendment equals $90.000. As a result of the operation of the plan during 2017, the actuary provided the following additional data...
Howard Corp. sponsors a defined-benefit pension plan for its employees. On january 1, 2011, the following balances are related to its defined-benefit pension plan: Plan assets (market-related value) 520,000 Projected benefit obligation 660,000 Pension assoliability 140,000 Prior service cost 60,000 UEGL - Loss 95,000 On December 31, 2011, the actuary provides the following additional data: Service cost for 2011 72,000 Actual return on plan assets in 2011 42,000 Amortization of prior service cost 8,000 Contributions in 2011 60,000 Benefits paid...
Howard Corp. sponsors a defined benefit pension plan for its employees. On january 1, 2011, the following balances are related to its defined benefit pension plan: Plan assets (market-related value) 520,000 Projected benefit obligation 660,000 Pension asset liability 140,000 Prior service cost 60,000 UEGL - Loss 95,000 On December 31, 2011, the actuary provides the following additional data: Service cost for 2011 Actual return on plan assets in 2011 Amortization of prior service cost Contributions in 2011 Benefits paid retirees...
Howard Corp. sponsors a defined benefit pension plan for its employees. On january 1, 2011, the following balances are related to its defined benefit pension plan: 520,000 660,000 140,000 60,000 95,000 Plan assets (market-related value) Projected benefit obligation Pension asset liability Prior service cost VEGL - Loss On December 31, 2011, the actuary provides the following additional data: Service cost for 2011 Actual return on plan assets in 2011 Amortization of prior service cost Contributions in 2011 Benefits paid retirees...
Howard Corp. sponsors a defined benefit pension plan for its employees. On january 1, 2011, the following balances are related to its defined benefit pension plan: 520,000 660,000 140,000 60,000 95,000 Plan assets (market-related value) Projected benefit obligation Pension asset liability Prior service cost VEGL - Loss On December 31, 2011, the actuary provides the following additional data: Service cost for 2011 Actual return on plan assets in 2011 Amortization of prior service cost Contributions in 2011 Benefits paid retirees...
Howard Corp. sponsors a defined-benefit pension plan for its employees. On january 1, 2011, the following balances are related to its defined-benefit pension plan: Plan assets (market-related value) Projected benefit obligation Pension assetliability Prior service cost VEGL - Loss 520,000 660,000 140,000 60,000 95,000 On December 31, 2011, the actuary provides the following additional data: Service cost for 2011 Actual return on plan assets in 2011 Amortization of prior service cost Contributions in 2011 Benefits paid retirees in 2011 Settlement...
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