{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

ACT_3392_Chp_20_Homework_Solutions

# ACT_3392_Chp_20_Homework_Solutions - Intermediate...

This preview shows pages 1–7. Sign up to view the full content.

Intermediate Accounting II Amanda N. Paul, CPA, MBA Troy University

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Chapter 20 EXERCISE 20-1 (a) Computation of pension expense: Service cost \$ 60,000 Interest cost (\$500,000 X .10) 50,000 Expected return on plan assets (12,000) Unrecognized prior service cost amortization 8,000 Pension expense for 2010 \$106,000 (b) Pension Expense 106,000 Cash 95,000 Pension Asset /Liability 3,000 Other Comprehensive Income (PSC) 8,000
EXERCISE 20-2 Computation of pension expense: Service cost \$ 90,000 Interest cost (\$800,000 X 10%) 80,000 Expected return on plan assets (64,000) Prior service cost amortization 10,000 Pension expense for 2011 \$116,000

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
EXERCISE 20-5 Computation of Service-Years Year Ed Paul Mary Dave Caroline Total 2011 1 1 1 1 1 5 2012 1 1 1 1 1 5 1 1 1 1 1 1 5 2014 1 1 1 1 4 2015 1 1 1 3 2016 1 1 1 3 3 4 6 6 6 25 Cost per service-year: \$60,000 ÷ 25 = \$2,400
EXERCISE 20-5, continued Computation of Annual Prior Service Cost Amortization Year Total Cost Annual Service-Years Per Service-Year Amortization 2011 5 \$2,400 \$12,000 2012 5 2,400 12,000 2013 5 2,400 12,000 2014 4 2,400 9,600 2015 3 2,400 7,200 2016 3 2,400 7,200 \$60,000

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
EXERCISE 20-6 Computation of Actual Return on Plan Assets
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 10

ACT_3392_Chp_20_Homework_Solutions - Intermediate...

This preview shows document pages 1 - 7. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online