ch 20.docx - The following information is available for the...

Info icon This preview shows pages 1–10. Sign up to view the full content.

View Full Document Right Arrow Icon
Image of page 1

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

View Full Document Right Arrow Icon
Image of page 2
Image of page 3

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

View Full Document Right Arrow Icon
Image of page 4
Image of page 5

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

View Full Document Right Arrow Icon
Image of page 6
Image of page 7

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

View Full Document Right Arrow Icon
Image of page 8
Image of page 9

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

View Full Document Right Arrow Icon
Image of page 10
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: The following information is available for the pension plan of Flint Company for the year 2017. Actual and expected return on plan assets $ 15,400 Benefits paid to retirees 38,500 Contributions (funding) 90,500 Interest/discount rate 9 % Prior service cost amortization 8,200 Projected benefit obligation, January 1, 2017 507,000 Service cost 63,500 Your answer is correct. Compute pension expense for the year 2017. 101930 $— Pension expense for 2017 Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2017. (Credit account titles are an amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the arm: Account Titles and Explanation Debit Credit Pension Expense 101930 90500 Pension Asset/Liability 3230 Other Comprehensive Income (PSC) 8200 |‘ |‘ i |‘ IN IN I‘ I‘ IN IN I‘ I« Click if you would like to Show Work for this question: Open Show Work Exercise 20-2 Your answer is correct. Blossom Company provides the following information about its defined benefit pension plan for the year 2017. Service cost $ 90,300 Contribution to the plan 106,800 Prior service cost amortization 9,600 Actual and expected return on plan assets 63,800 Benefits paid 39,700 Plan assets at January 1, 2017 629,900 Projected benefit obligation at January 1, 2017 706,100 Accumulated OCI (PSC) at January 1, 2017 150,800 Interest/discount (settlement) rate 10 % Compute the pension expense for the year 2017. Pension expense for 2017 $— Click if you would like to Show Work for this question: Open Show Work Exercise 20-4 Your answer is correct. The following facts apply to the pension plan of Pronghorn Inc. for the year 2017. Plan assets, January 1, 2017 $505,500 Projected benefit obligation, January 1, 2017 505,500 Settlement rate 8 % Service cost 38,400 Contributions (funding) 26,100 Actual and expected return on plan assets 47,600 Benefits paid to retirees 33,700 Exercise 20-7 Your answer is correct. The following defined pension data of Crane Corp. apply to the year 2017. Projected benefit obligation, 1/1/17 (before amendment) Plan assets, 1/1/17 Pension liability On January 1, 2017, Crane Corp., through plan amendment, grants prior service benefits having a present value of Settlement rate Service cost Contributions (funding) Actual (expected) return on plan assets Benefits paid to retirees Prior service cost amortization for 2017 Items OCI-Prior Service Cost Annual Pension Expense Asset/ Liability $545,000 531,200 13,800 1 19,000 8 "/0 63,800 60,600 52,000 38,200 16,400 Projected Benefit Obligation Balance, Dec. 31, 2016 Prior service cost Balance, Jan. 1, 2017 Service cost Interest cost Actual return Amortization of PSC Contributions Benefits Journal entry for 2017 Accumulated OCI, Dec. 31, 2016 Balance, Dec. 31, 2017 Click if you would like to Show Work for this question: J I J J $“ -Cr. H “ “ 66400 “ J -'_ J Open Show Work Exercise 20-8 Your answer is correct. Ivanhoe Corp. has the following beginning-of—the-year present values for its projected benefit obligation and market-related values for its pension plan assets. Projected Plan Benefit Assets Obligation Value 2016 $2,420,000 $2,299,000 2017 2,904,000 3,025,000 2018 3,569,500 3,146,000 2019 4,356,000 3,630,000 The average remaining service life per employee in 2016 and 2017 is 10 years and in 2018 and 2019 is 12 years. The net gain or loss that occurred during each year is as follows: 2016, $338,800 loss; 2017, $108,900 loss; 2018, $13,310 loss; and 2019, $30,250 gain. (In working the solution, the gains and losses must be aggregated to arrive at year-end balances.) Using the corridor approach, compute the amount of net gain or loss amortized and charged to pension expense in each of the four years, setting up an appropriate schedule. Year Minimum Amortization of Loss l 2016 $ V $ J $ ./ $ Click if you would like to Show Work for this question: Open Show Work Flint Company sponsors a defined benefit pension plan. The corporation’s actuary provides the following information about the plan. January 1, 2017 December 31, 2017 Vested benefit obligation $1,620 $1,780 Accumulated benefit obligation 1,780 2,720 Projected benefit obligation 2,550 3,590 Plan assets (fair value) 1,650 2,800 Settlement rate and expected rate of return 10 % Pension asset/liability 900 ? Service cost for the year 2017 390 Contributions (funding in 2017) 680 Benefits paid in 2017 180 (3) Compute the actual return on the plan assets in 2017. Actual return on the plan assets $m (b) Compute the amount of the other comprehensive income (G/L) as of December 31, 2017. (Assume the January 1, 2017, balance was zero.) (Enter loss using eithera negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net pension liability gains and losses 3;” (c) Compute the amount of net gain or loss amortization for 2017 (corridor approach). Net gain or loss amortization $- (d) Compute pension expense for 2017. Pension expense 480 $ Exercise 20-14 Sheridan Company sponsors a defined benefit pension plan. The corporation’s actuary provides the following information about the plan. January 1, 2017 December 31, 2011 Vested benefit obligation $1,530 Accumulated benefit obligation 1,880 Projected benefit obligation 2,490 Plan assets (fair value) 1,690 Settlement rate and expected rate of return Pension asset/liability 800 Service cost for the year 2017 Contributions (funding in 2017) Benefits paid in 2017 Your answer is correct. Prepare a 2017 pension worksheet. (Enter all amounts as positive.) $1,880 2,730 3,320 2,620 10% ? 400 710 200 SHERIDAN COMPANY Pension Worksheet—2017 General Journal Entries Annual Pension Items Expense Cash Balance, Jan. 1, 2017 Service cost Interest cost Actual return Unexpected gain Contributions Benefits Liability increase OCI— Gain/ Loss Journal entry for 2017 Accumulated OCI, Dec. 31, 2016 Pension Asset] Liability Memo Record Entries Projected Benefit Plan Obligation Assets Balance, Dec. 31, 2017 Date Account Titles and Explanation Debit Credit I II II DEC- 31: 2017 Pension Expense 480 Other Comprehensive Income (GIL) 130 Pension Asset/Liability 100 I II I cash 710 II IK SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Your answer is correct. Indicate the pension amounts reported in the balance sheet. Sheridan Company’s Balance Sheet (Partial) December 31, 2017 I Liabilities ¢ I ¢ ~/ Pen5|on Liability | $— ~/ 130 l _ Stockholders' EqUIty I Accumulated Other Comprehensive Loss (G/L) I $— A Y A V Click if you would like to Show Work for this question: Open Show Work ...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern