Prepare the journal entries to record the pension expense and the company's funding of the pension plan for both years. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020 Pension Expense 136880 Pension Asset/Llability 27140 Other Comprehensive I 11800 Other Comprehensive 16520 Cash 135700 Dec. 31, 2021 pension Expense 179360 Pension Asset/Liability 23600 Other Comprehensive I 14160 Cash 141600
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- Question text Net interest cost is a component of pension expense under IFRS. How is net interest cost calculated? Select one: а. Interest expense on the defined benefit obligation (DBO), net of expected interest income earned on plan assets. b. The increase in the DBO over the period, net of the increase in the plan assets over the period. С. Interest expense on the DBO, net of actual interest income earned on plan assets. d. The increase in the DBO over the period, net of the increase in the plan assets over the period.Determining Funded Status, Recording Pension Expense, Preparing Worksheet Rico Corporation initiated a defined benefit pension plan on January 1, 2020. The plan does not provide any retroactive benefits for existing employees. The pension funding payment is made to the trustee on December 31 of each year. The following information is available for 2020 and 2021. 2020 2021 Service cost $75,000 $82,500 Funding payment (contribution) 85,000 92,500 Interest on projected benefit obligation 7,500 Actual and expected return on plan assets 9,000 Financial Statement Presentation and Entries Pension Worksheet a. In its December 31, 2020, balance sheet, Rico should report what amount of net pension asset/liability? Balance Sheet December 31, 2020 Noncurrent assets Net pension asset Noncurrent liabilities Net pension liability b. In its December 31, 2021, balance sheet, Rico should report what amount of net pension asset/liability?…Determining Funded Status, Recording Pension Expense, Preparing Worksheet Rico Corporation initiated a defined benefit pension plan on January 1, 2020. The plan does not provide any retroactive benefits for existing employees. The pension funding payment is made to the trustee on December 31 of each year. The following information is available for 2020 and 2021. 2020 2021 Service cost $75,000 $82,500 Funding payment (contribution) 85,000 92,500 Interest on projected benefit obligation 7,500 Actual and expected return on plan assets 9,000 Financial Statement Presentation and Entries Pension Worksheet a. In its December 31, 2020, balance sheet, Rico should report what amount of net pension asset/liability? Balance Sheet December 31, 2020 Noncurrent assets Net pension asset Noncurrent liabilities Net pension liability b. In its December 31, 2021, balance sheet, Rico should report what amount of net pension asset/liability?…
- Current Attempt in Progress Cullumber Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2025, the following balances relate to this plan. Plan assets Projected benefit obligation Pension asset/liability Accumulated OCI (PSC) $465,800 604,200 138,400 95,000 Dr. As a result of the operation of the plan during 2025, the following additional data are provided by the actuary. (a) Service cost Settlement rate, 10% Actual return on plan assets Amortization of prior service cost Expected return on plan assets Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions Contributions Benefits paid retirees $86,600 55,000 19,300 52,000 79,600 102,800 88,300 Using the data above, compute pension expense for Cullumber. for the year 2025 by preparing a pension worksheet. (Enter all amounts as positive)1. Compute 2022 net periodic pension expense. The 2022 records of MPS Company provided the following data related to its noncontributory, defined benefit pension plan (amounts in PO00s): a. Accumulated benefit obligation (report of actuary) Beginning balance P3,000 Service cost 1,200 Interest cost 240 Pension benefits paid Ending balance (400) P4,040 Discount rate used by actuary, 8% b. Plan assets at fair value (report of trustee): Beginning balance Actual return on plan assets Contributions P2,400 168 1,016 (400) Pension benefits paid Ending balance Р3,192 Expected long-term rate of return of plan assets, 7% c. January 1, 2022, balance of unrecognized prior service cost, gains and losses, and transaction cost, zero.Splish Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2020 and 2021. Plan assets (fair value), December 31 Projected benefit obligation, January 1 Pension asset/liability, January 1 Prior service cost, January 1 Service cost Actual and expected return on plan assets Amortization of prior service cost Contributions (funding) Accumulated benefit obligation, December 31 Interest/settlement rate 2020 $712,980 714,000 142,800 Cr. 255,000 61,200 24,480 10,200 117,300 510,000 8% 2021 $865,980 816,000 ? 244,800 91,800 30,600 12,240 122,400 561,000 8 %
- Computing Pension Expense, Gain/Loss Amortization, PBO, and Plan Asset Balances The following data relate to a defined benefit pension plan for Hollistir Co. Fair value of plan assets, Jan. 1, 2020 $9,600 PBO Jan. 1, 2020, not including any items below 12,000 PSC from amendment dated Jan. 1, 2020, (10 years is the amortization period) 6,000 Gain from change in actuarial assumptions, computed as of Jan. 1, 2020 1,800 Actual return on plan assets, 2020 1,200 Contributions to plan assets in 2020 2,400 Benefits paid to retirees in 2020 3,000 Service cost for 2020 5,400 Discount rate 8% Expected rate of return on plan assets 10% Required a. Compute pension expense for 2020. Hollistir amortizes the full pension gain/loss over average service life of 15 years, using the straight-line method. Pension expense, 2020 b. Compute PBO at December 31, 2020. PBO, Dec. 31, 2020 c. Compute fair value of plan assets at December 31, 2020. Fair…Determining Pension Expense The following information pertains to Qdobe Corporation’s defined benefit pension plan for 2020. Service cost $512,000 Actual and expected gain on plan assets 112,000 Actuarial loss on PBO incurred during 2020 128,000 Amortization of unrecognized prior service cost 16,000 Annual interest on pension obligation 160,000 What amount should Qdobe report as pension expense in its 2020 income statement? Assume no beginning balance in Accumulated OCI—Pension Gain/Loss. Pension expense, 2020Exercise 20-03 (Part Level Submission) Pina Company provides the following information about its defined benefit pension plan for the year 2020. Service cost $88,700 Contribution to the plan 103,000 Prior service cost amortization 9,800 Actual and expected return on plan assets Benefits paid 63,000 40,100 Plan assets at January 1, 2020 633,700 Projected benefit obligation at January 1, 2020 699,000 Accumulated OCI (PSC) at January 1, 2020 150,500 Interest/discount (settlement) rate 10 %
- Wildhorse Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2020 and 2021. 2020 2021 Plan assets (fair value), December 31 $817,830 $993,330 Projected benefit obligation, January 1 819,000 936,000 Pension asset/liability, January 1 163,800 Cr. ? Prior service cost, January 1 292,500 280,800 Service cost 70,200 105,300 Actual and expected return on plan assets 28,080 35,100 Amortization of prior service cost 11,700 14,040 Contributions (funding) 134,550 140,400 Accumulated benefit obligation, December 31 585,000 643,500 Interest/settlement rate 10 % 10 % Compute pension expense for 2020 and 2021. Pension expense for 2020 $ Pension expense for 2021 $Wildhorse Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2020 and 2021. 2020 2021 Plan assets (fair value), December 31 $817,830 $993,330 Projected benefit obligation, January 1 819,000 936,000 Pension asset/liability, January 1 163,800 Cr. ? Prior service cost, January 1 292,500 280,800 Service cost 70,200 105,300 Actual and expected return on plan assets 28,080 35,100 Amortization of prior service cost 11,700 14,040 Contributions (funding) 134,550 140,400 Accumulated benefit obligation, December 31 585,000 643,500 Interest/settlement rate 10 % 10 % Pension expense for 2020: $135,720 Pension expense for 2021: $177,840 Prepare the journal entries to record the pension expense and the company’s funding of the pension plan for both years. Date Account Titles and Explanation Debit Credit Dec.…Wildhorse Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2020 and 2021. 2020 2021 Plan assets (fair value), December 31 $817,830 $993,330 Projected benefit obligation, January 1 819,000 936,000 Pension asset/liability, January 1 163,800 Cr. ? Prior service cost, January 1 292,500 280,800 Service cost 70,200 105,300 Actual and expected return on plan assets 28,080 35,100 Amortization of prior service cost 11,700 14,040 Contributions (funding) 134,550 140,400 Accumulated benefit obligation, December 31 585,000 643,500 Interest/settlement rate 10 % 10 % Prepare the journal entries to record the pension expense and the company’s funding of the pension plan for both years.