Not a graded assignment Ivanhoe Limited is a publicly traded company on the Toronto Stock Exchange. The company sponsors a defined benefit pension planfor all of its employees, and the controller provides you with the following data that relate to the plan for fiscal 2023:1.The actuary has determined that the actuarial present value of future benefits earned by employees for services rendered inthe year amounted to $89,440.2.The plan requires Ivanhoe to make a cash contribution of $182,000 to the plan assets for 2023.3.On January 1, 2023, the company's defined benefit obligation was $1,071,200, and the fair value of pension plan assets was$988,000. The plan assets generated a return of $58,240 during the year, and Ivanhoe's discount rate was 8%.4.Benefits of $78,000 were paid in 2023.5.In late December 2023, an actuarial revaluation of the defined benefit obligation indicated an actuarial loss of $30,160.(a)Determine the defined benefit expense that should be recognized by the company in 2023.Defined benefit expense$ B. Prepare the journal entries to record defined benefit expense and the company's funding of the pension plan in 2023.

It is defined as the benefit ahead of timeIt is a monthly payment in retirement, based on the…

Answered: Ivanhoe Limited is a publicly traded…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 6RE

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Lemur Corp. is going to pay three employees a year-end bonus. The amount of the year-end bonus and the amount of federal income tax withholding are as follows. Lemurs payroll deductions include FICA Social Security at 6.2%, FICA Medicare at 1.45%, FUTA at 0.6%, SUTA at 5.4%, federal income tax as previously shown, state income tax at 5% of gross pay, and 401(k) employee contributions at 2% of gross pay. Record the entry for the employee payroll on December 31.
Blossom Corporation is a publicly traded company and follows IFRS. On December 31, 2022, Blossom's financial records indicated the following information related to the company's defined benefit pension plan: Defined Benefit Obligation Pension Plan Assets Blossom Corporation's actuary provided the following information on December 31, 2023: Discount rate Current year service cost Prior service cost, granted Jan 1, 2023 Employer contributions for the year Benefits paid to retirees Expected return on assets Actual return on assets (a) Balance, January 1, 2023 Current Service Cost $1,360,000 Prior Service Cost 1,520,000 Net Interest/Finance Cost Prepare a pension worksheet for Blossom Corporation for 2023. Asset Remeasurement Gain/Loss $80,000 Net Funding Entry 194,000 84,000 31,000 Employer Contributions to Pension Fund Balance, December 31, 2023 Defined Benefit Expense Entry - 2023 5% 6% Benefits Paid to Retirees from Pension Fund 5% Remeasurement Gain/Loss (OCI) < Annual Defined Benefit…
TKE Corporation established a defined benefit pension plan in 2016. TKE has provided the following information for the year ended December 31, 20X1: Service cost $ 90,000 Interest cost $ 120,000 Actual return on plan assets $ 70,000 Expected return on plan assets $ 80,000 Amortization of prior service costs $ 30,000 If the company contributes $130,000 cash to the pension plan trustee, which one of the following journal entries properly records the payment? Multiple Choice DR Pension expense 90,000 DR Pension asset (liability) 40,000 CR Cash 130,000 DR Pension expense 120,000 DR Pension asset 10,000 CR Cash 130,000 DR Pension expense 130,000 CR Cash 130,000 DR Pension expense 160,000 CR Cash 130,000 CR Pension asset (liability) 30,000
Ridley Corporation is a manufacturing company in the Caribbean. The companysponsors a defined benefit pension plan for its employees. The following balances relateto the plan on January 1, 2020. (amounts in thousands). Defined benefit obligationPlan assets (market-related value)Pension asset/liabilityOCI—Loss $340,000$270,000$ 70,000 Cr$ 39,000 On December 31, 2020, the actuary provided the following additional data as a result ofthe operation of the plan during the year. Actual return on plan assetsService costBenefits paid retireesContributionsDiscount (interest) rate $27,000$45,000$41,000$65,0007% 1. Prepare the journal entry to record pension expense and the employer’s contribution tothe pension plan in 2020 2. Indicate the pension-related amounts that would be reported on the income statement andthe statement of financial position for Ridley Corporation for the year 2020
Ridley Corporation is a manufacturing company in the Caribbean. The companysponsors a defined benefit pension plan for its employees. The following balances relate to the plan on January 1, 2020. (amounts in thousands).Defined benefit obligation $340,000Plan assets (market-related value) $270,000Pension asset/liability $ 70,000 CrOCI—Loss $ 39,000On December 31, 2020, the actuary provided the following additional data as a result of the operation of the plan during the year. Actual return on plan assets $27,000Service cost $45,000Benefits paid retirees $41,000Contributions $65,000Discount (interest) rate 7%Instructions.(a) Prepare a 2020 pension worksheet with supplementary schedules. (b) Determine the amounts of the components of pension expense that should be recognized by the company in 2020. (c) Indicate the pension-related amounts that would be reported on the income statement and the statement of financial position for Ridley Corporation for the year 2020.
Ridley Corporation is a manufacturing company in the Caribbean. The companysponsors a defined benefit pension plan for its employees. The following balances relate to the plan on January 1, 2020. (amounts in thousands).Defined benefit obligation $340,000Plan assets (market-related value) $270,000Pension asset/liability $ 70,000 CrOCI—Loss $ 39,000On December 31, 2020, the actuary provided the following additional data as a result of the operation of the plan during the year. Actual return on plan assets $27,000Service cost $45,000Benefits paid retirees $41,000Contributions $65,000Discount (interest) rate 7%Instructions.(a) Prepare a 2020 pension worksheet with supplementary schedules. (b) Determine the amounts of the components of pension expense that should be recognized by the company in 2020. (c) Prepare the journal entry to record pension expense and the employer’s contribution to the pension plan in 2020.
Ridley Corporation is a manufacturing company in the Caribbean. The companysponsors a defined benefit pension plan for its employees. The following balances relate to the plan on January 1, 2020. (amounts in thousands).Defined benefit obligation $340,000Plan assets (market-related value) $270,000Pension asset/liability $ 70,000 CrOCI—Loss $ 39,000On December 31, 2020, the actuary provided the following additional data as a result of the operation of the plan during the year. Actual return on plan assets $27,000Service cost $45,000Benefits paid retirees $41,000Contributions $65,000Discount (interest) rate 7%Instructions.(a) Prepare a 2020 pension worksheet with supplementary schedules. (b) Determine the amounts of the components of pension expense that should be recognized by the company in 2020. (c) Prepare the journal entry to record pension expense and the employer’s contribution to the pension plan in 2020. (d) Indicate the pension-related amounts that would be reported on the…
Marigold Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2021, the following balances related to this plan. Plan assets (market-related value) $269.400 Projected benefit obligation 334.400 Pension asset/liability 65,000 Cr. Prior service cost 89,600 OCI-Loss 39,700 As a result of the operation of the plan during 2021, the actuary provided the following additional data for 2021. Service cost $44,500 Actual return on plan assets 26,900 Amortization of prior service cost 12,000 Contributions 64,400 Benefits paid retirees 41,400 Settlement rate 7 % Expected return on plan assets 8 % Average remaining service life of active employees 10 years Indicate the pension amounts reported in the financial statements. Marigold Corp. Income Statement (Partial) Marigold Corp. Comprehensive Income Statement $XXXX $XXXX Marigold Corp. Partial Balance Sheet $ 2$
Ridley Corporation is a manufacturing company in the Caribbean. The companysponsors a defined benefit pension plan for its employees. The following balances relateto the plan on January 1, 2020. (amounts in thousands).Defined benefit obligation $340,000Plan assets (market-related value) $270,000Pension asset/liability $ 70,000 CrOCI—Loss $ 39,000On December 31, 2020, the actuary provided the following additional data as a result ofthe operation of the plan during the year.Actual return on plan assets $27,000Service cost $45,000Benefits paid retirees $41,000Contributions $65,000Discount (interest) rate 7%(a) Prepare a 2020 pension worksheet with supplementary schedules. (b) Determine the amounts of the components of pension expense that should be recognizedby the company in 2020. (c) Prepare the journal entry to record pension expense and the employer’s contribution tothe pension plan in 2020.
Superman Inc. maintains a defined benefit pension plan. At the beginning of 2022 the pension plan has assets of $700,000 and a defined benefit obligation of $900,000. The discount rate chosen by the actuary is 9%. Current service costs for 2022 are $60,000 while some past service costs arose due to a plan amendment at the beginning of the year of $20,000. In 2022, the company contributed $75,000 to the plan at the end of the year. The benefits paid out of the plan to pensioners during 2022 amounted to $50,000 and this occurred evenly throughout the year. The plan assets at the end of the year were actually $802,250 Complete a worksheet that will calculate the movement in all company and pension plan related accounts. Record the journal entry needed to account for the pension expense in 2022 assuming Superman uses ASPE and then redo the entry assuming IFRS is used. Identify the pension plan's funded status and the asset or liability reported on the Balance Sheet at December 31, 2022.
Fernando's Furniture Inc. sponsors a defined benefit pension plan for its employees. The plan's trustee reports the following information for calendar 2023: Defined benefit obligation, January 1 Fair value of plan assets, January 1..... Current service cost......... $240,000 180,000 80,000 Actual and expected return on plan assets ....21,000 Contributions .70,000 Benefits paid to retirees. 120,000 Interest (discount) rate..... 10% Past service costs (as of January 1). 10,000 ……………. The corporation uses ASPE. Instructions a) Calculate the amount of the defined benefit expense for 2023, and prepare the required adjusting entries. b) Calculate the surplus or deficit of the plan on December 31, 2023.
Hubbard, Inc. received the following information from its pension plan trustee concerning the operation of the company's defined-benefit pension plan for the year ended December 31, 2021. 1/1/21 $13,300,000 7,000,000 2,800,000 -0- The service cost component of pension expense for 2021 is $1,040,000 and the amortization of prior service cost due to an increase in benefits is $210,000. The settlement rate is 10% and the expected rate of return is 8%. What is the amount of pension expense for 2021? a. $2,062,000 b. $2,020,000 c. $1,936,000 d. $1,740,000 12/31/21 $13,720,000 Projected benefit obligation Pension assets (at fair value) Accumulated benefit obligation Net (gains) and losses 8,050,000 3,220,000 280,000

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