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 | 40,000 | 45,000 | ||||
Actual return on plan assets | 140,000 | 120,000 | ||||
Expected rate of return on assets | 8 | % | 6 | % |
Indicate the postretirement-benefit–related amounts reported in the 2018 financial statements.
Elton Co.
Partial Income Statement
For the Year Ended December 31, 2018
-DividendsExpensesNet Income / (Loss)Retained Earnings, January 1, 2018 Retained Earnings, December 31, 2018 Revenues Total Expenses Total Revenues-
-Amortization of Loss Asset Gain (Loss) Comprehensive Income (Loss) Liability Gain (Loss) Postretirement Expense Prior Service Cost Amortization Other Comprehensive Income (Loss)- $
Elton
Co. Comprehensive Income Statement December 31, 2018For the Year Ended December 31, 2018For the Quarter Ended December 31, 2018 |
||||
DividendsExpensesNet Income / (Loss)Retained Earnings, January 1, 2018Retained Earnings, December 31, 2018RevenuesTotal ExpensesTotal Revenues |
$XXXX |
|||
Amortization of LossAsset Gain (Loss)Comprehensive Income (Loss)Liability Gain (Loss)Plan Amendment (PSC)Postretirement ExpensePrior Service Cost AmortizationOther Comprehensive Income (Loss) |
||||
Amortization of Loss Asset Gain (Loss) Comprehensive Income (Loss) Liability Gain (Loss) Plan Amendment (PSC) Postretirement Expense Prior Service Cost Amortization Other Comprehensive Income (Loss) |
$ | |||
Amortization of Loss Asset Gain (Loss) Comprehensive Income (Loss) Liability Gain (Loss) Plan Amendment (PSC) Postretirement Expense Prior Service Cost Amortization Other Comprehensive Income (Loss) |
||||
Amortization of Loss Asset Gain (Loss) Comprehensive Income (Loss) Liability Gain (Loss) Plan Amendment (PSC) Postretirement Expense Prior Service Cost Amortization Other Comprehensive Income (Loss) |
||||
Amortization of LossAsset Gain (Loss)Comprehensive Income (Loss)Liability Gain (Loss)Plan Amendment (PSC)Postretirement ExpensePrior Service Cost AmortizationOther Comprehensive Income (Loss) |
$XXXX |
Elton
Co. Partial Balance Sheet December 31, 2018For the Year Ended December 31, 2018For the Quarter Ended December 31, 2018 |
||||||
Current AssetsIntangible AssetsLiabilitiesLong-term InvestmentsProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Intangible AssetsTotal Long-term InvestmentsTotal Property, Plant and EquipmentTotal Stockholders' Equity |
||||||
Accumulated Other Comprehensive Loss (G/L) Accumulated Other Comprehensive Loss (PSC) Current Assets Current Liabilities Expenses Intangible Assets Liabilities Long-term Investments Long-term Liabilities Postretirement Liability Property, Plant and Equipment Revenues Stockholders' Equity Total Assets Total Current Assets Total Current Liabilities Total Expenses Total Intangible Assets Total Liabilities Total Liabilities and Stockholders' Equity Total Long-term Investments Total Long-term Liabilities Total Property, Plant and Equipment Total Revenues Total Stockholders' Equity Stockholders’ Equity |
$ | |||||
Current AssetsIntangible AssetsLiabilitiesLong-term InvestmentsProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Intangible AssetsTotal Long-term InvestmentsTotal Property, Plant and EquipmentTotal Stockholders' Equity |
||||||
Accounts Payable Accounts Receivable Accumulated Depreciation Accumulated Other Comprehensive Income (G/L) Accumulated Other Comprehensive Loss (G/L) Accumulated Other Comprehensive Income (PSC) Accumulated Other Comprehensive Loss (PSC) Common Stock Postretirement Liability Retained Earnings |
$ | |||||
Accounts Payable Accounts Receivable Accumulated Depreciation Accumulated Other Comprehensive Income (G/L) Accumulated Other Comprehensive Loss (G/L) Accumulated Other Comprehensive Income (PSC) Accumulated Other Comprehensive Loss (PSC) Common Stock Postretirement Liability Retained Earnings |
Elton Co. has the following postretirement benefit plan balances on January 1, 2017. Accumulated postretirement benefit...
Tamarisk Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2020 and 2021. 2020 2021 Projected benefit obligation, January 1 $602,200 Plan assets (fair value and market-related value), January 1 411,200 Pension asset/liability, January 1 191,000 Cr. Prior service cost, January 1 159,200 Service cost 39,800 $58,700 Settlement rate 10 % 10 % Expected rate of return 10 % 10 % Actual return on plan assets...
Riverbed Company received the following selected information from its pension plan trustee concerning the operation of the company’s defined benefit pension plan for the year ended December 31, 2017. January 1, 2017 December 31, 2017 Projected benefit obligation $1,523,000 $1,550,000 Market-related and fair value of plan assets 794,000 1,128,400 Accumulated benefit obligation 1,597,000 1,716,400 Accumulated OCI (G/L)—Net gain 0 (202,300 ) The service cost component of pension expense for employee services rendered in the current year amounted to $77,000 and...
*P20-14 (L06,7) (Postretirement Benefit Worksheet-2 Years) Elton Co. has the following postretirement benefit plan bal ances 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%. Or a ry 1, 2018, the company amends the plan so that peor service costs of $175,000 are created. Other data related to the plan and 2017 $ 75,000 Service costs Prior service costs amortization Contributions (funding) to the...
Waterway Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2017 in which no benefits were paid. 1. The actuarial present value of future benefits earned by employees for services rendered in 2017 amounted to $55,400. 2. The company’s funding policy requires a contribution to the pension trustee amounting to $134,684 for 2017. 3. As of January 1, 2017, the company had a projected benefit obligation...
Problem 20-11 The following data relate to the operation of Culver Co.'s pension plan in 2018. Service cost Actual return on plan assets Amortization of prior service cost Annual contributions Benefits paid retirees Average service life of all employees $64,900 35,200 30,800 56,100 29,700 25 years The pension worksheet for 2017 is presented below. CULVER COMPANY Worksheet-2017 General Journal Entries Annual Pension Expense Cash OCI-Prior OCI - Pension Service Cost Gain/Loss Asset/Liability $132,000 Cr. Memo Record Projected Benefit Obligation Plan...
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,...
Waterway Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2017 and 2018. Prepare a pension worksheet presenting both years 2017 and 2018. (Round answers to 0 decimal places, e.g. 5,125. Enter all amounts as positive.) Calculate the amortization of the loss (2018) using the corridor approach. Amortization of the loss $ _______ Prepare the journal entries (from the worksheet) to reflect all pension plan transactions...
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...
Pearl Enterprises provides the following information relative to its defined benefit pension plan. Balances or Values at December 31, 2020 Projected benefit obligation $2,743,700 Accumulated benefit obligation 1,980,300 Fair value of plan assets 2,290,800 Accumulated OCI (PSC) 212,000 Accumulated OCI—Net loss (1/1/20 balance, 0) 45,800 Pension liability 452,900 Other pension plan data for 2020: Service cost $94,300 Prior service cost amortization 42,200 Actual return on plan assets 129,800 Expected return on plan assets 175,600 Interest on January 1, 2020, projected...