Intermediate Accounting Solutions to Selected exercises from Kieso Chap 20

Intermediate Accounting Solutions to Selected exercises from Kieso Chap 20

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a. Pension Expense(NET PERIODIC PENSION COST): Service cost 60,000 Interest on PBO 50,000 =500,000x.1 expected return (12,000) amortization prior SC 8,000 106,000 b.) Pension Expense 106,000 cash 95,000 Pension asset/Liability 11,000 Additional Entry not asked for in problem: Pension asset/Liability 8,000 Other Comprehensive income prior service costs (PSC) 8,000
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Pension Expense(NET PERIODIC PENSION COST): Service cost 90,000 Interest on PBO 80,000 = 800,000x.1 expected return (64,000) amortization prior SC 10,000 116,000 Journal entries(not required in problem) JE #1 Pension expense 116,000 cash 105,000 Pension asset/liability 11,000 JE#2 Pension asset/liability 10,000 other Comprhensive Income(PSC) 10,000
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The following worksheet reconciles key components of Pensiion accounting. This is not exactly the answ question. From Pension Acc PBO Assets prior page asset/liab OCI(PSC) 1/1/11 (800,000) 640,000 (160,000) 150,000 interest (80,000) exp ret 64,000 JE #1 (11,000) SC (90,000) contribution 105,000 JE#2 10,000 JE#2 (10,000) benefits pd 40,000 benefits pd (40,000) expected 12/31/11 (930,000) 769,000 (161,000) 140,000 Note: PBO-assets=pension asset/liability
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wer to the authors
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This is not exactly a solution of the text book question! Pension Expense(NET PERIODIC PENSION COST): Service cost 40,000 Interest on PBO 41,650 =490,000x.085 expected return (49,700) 31,950 Pension expense 31,950 cash 30,000 Pension asset/liability 1,950 Pension PBO Assets asset/liab 1/1/11 (490,000) 490,000 0 interest (41,650) exp ret 49,700 JE above (1,950) SC (40,000) contribution 30,000 benefits pd 33,400 benefits pd (33,400) expected 12/31/11 (538,250) 536,300 (1,950) Note: PBO-assets=pension asset/liability
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This note was uploaded on 06/24/2008 for the course ACCT 202 taught by Professor Hintz during the Spring '08 term at St. John Fisher College.

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Intermediate Accounting Solutions to Selected exercises from Kieso Chap 20

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