5 Question 4*McLaughlin Corp., a publicly accountable entity, operates a defined benefit pension planfor its employees. Information for the pension plan for the year endedDecember 31, 2021, is as follows:Defined benefit obligation, at December 31, 2020Pension plan assets, at December 31, 2020$16,500,000 CO$14,300,000 ACurrent service cost, at December 31, 2021$1,900,0000$ 650,000Benefits paid to retirees, at December 31, 2021Contribution to pension plan, at December 31, 2021Actual return on plan assets, 2021$ 1,200,000$ 430,000 0Yield on high corporate bonds, 2021now.4%Defined benefit obligation - per actuary, at December 31, 2021$18,300,000Required:OS TEPrepare all journal entries for the pension plan transactions for the year endedDecember 31, 2021.ra

Introduction: Under defined benefit plan, the pension that employee receives after retirement is…

Question 4* McLaughlin Corp., a publicly accountable entity, operates a defined benefit pension plan for its employees. Information for the pension plan for the year ended December 31, 2021, is as follows: Defined benefit obligation, at December 31, 2020 Pension plan assets, at December 31, 2020 $16,500,0000 $14,300,000 R T.C n Current service cost, at December 31, 2021 Benefits paid to retirees, at December 31, 2021 Contribution to pension plan, at December 31, 2021 Actual return on plan assets, 2021 $1,900,000 0 $ 650,000 $1,200,000.0 430,000 08 4% $ Yield on high corporate bonds, 2021 Defined benefit obligation - per actuary, at December 31, 2021 $18,300,000 Required: Prepare all journal entries for the pension plan transactions for the year ended December 31, 2021. S18

Question 4* McLaughlin Corp., a publicly accountable entity, operates a defined benefit pension plan for its employees. Information for the pension plan for the year ended December 31, 2021, is as follows: Defined benefit obligation, at December 31, 2020 Pension plan assets, at December 31, 2020 $16,500,0000 $14,300,000 R T.C n Current service cost, at December 31, 2021 Benefits paid to retirees, at December 31, 2021 Contribution to pension plan, at December 31, 2021 Actual return on plan assets, 2021 $1,900,000 0 $ 650,000 $1,200,000.0 430,000 08 4% $ Yield on high corporate bonds, 2021 Defined benefit obligation - per actuary, at December 31, 2021 $18,300,000 Required: Prepare all journal entries for the pension plan transactions for the year ended December 31, 2021. S18

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 5E

See similar textbooks

Similar questions

Question text The relationship between the amount funded and the amount reported for pension expense is as follows Select one: а. pension expense will be less than the amount funded. b. pension expense will be more than the amount funded. c. pension expense must equal the amount funded. d. pension expense may be greater than, equal to, or less than the amount funded.
Pension Question Sophia Consultants Inc. has had a defined benefit pension plan since January 1, 2018. The following represents beginning balances as at January 1, 2022: Plan Asset $1,155,300; Defined Benefit Obligation $1,275,000; Net Pension Liability $119,700 Additional Information is as follows for 2022: Current Service cost is $186,000 for 2022 Company Funding/Contribution is $200,000 for 2022. Funding is made on December 31 of each year. Actual return on assets is $55,900 for 2022. There is an increase in obligation for $29,000 due to changes in Actuarial assumptions at Dec 31, 2022. There are payments made equal to $80,000 per year to retired employees in 2022 (payments to retirees are made at the end of the year on December 31). Past service cost of $85,900 from plan amendment dated December 31, 2022: liability is increased because benefits were increased on a retroactive basis. For 2022, the assumed interest rate is 6%. Assume IFRS. Required: 1. Determine Defined Benefit…
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.
3 continue b... The following information is available for the pension plan of Vaughn Company for the year 2020. Actual and expected return on plan assets $ 14,700 Benefits paid to retirees 40,800 Contributions (funding) 81,100 Interest/discount rate 10 % Prior service cost amortization 7,600 Projected benefit obligation, January 1, 2020 458,000 Service cost 63,900 Prepare the journal entry to record pension expense and the employer’s contribution to the pension plan in 2020. (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.) Account Titles and Explanation Debit Credit enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount…
J The following information relates to the defined benefit pension plan for the Nicola Company for the year ending December 31, 2020. Defined benefit obligation, January 1 P4,600,000 Defined benefit obligation, Dec. 31 4,729,000 Fair value of plan assets, January 1 5,035,000 Fair value of plan assets, Dec. 31 5,565,000 Expected return on plan assets 450,000 Employer contributions 425,000 Benefits paid to retirees 390,000 Settlement rate 10% Service cost for the year would be Group of answer choices P94,000 P59,000 P390,000 P129,000
Question 16 Buffalo Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan. Plan assets $463,200 Projected benefit obligation 578,200 Pension asset/liability 115,000 Accumulated OCI (PSC) 100,100 Dr. As a result of the operation of the plan during 2020, the following additional data are provided by the actuary. Service cost $86,600 Settlement rate, 8% Actual return on plan assets 53,200 Amortization of prior service cost 18,000 Expected return on plan assets 50,200 Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions 79,600 Contributions 99,600 Benefits paid retirees 85,100 Prepare the journal entry for pension expense for 2020. (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…
Crane Syrups Company provides the following pension plan information: Fair value of pension plan assets, January 1, 2025 Fair value of pension plan assets, December 31, 2025 Contributions to the plan in 2025 Benefits paid retirees in 2025 $1,215,000 1,424,000 157,000 204,000 From the data above, compute the actual return on the plan assets for 2025. Actual return on plan assets for 2025 $
What amount will be presented on the balance sheet for fiscal 2020? Fiscal 2019 Fiscal 2020 Fair value of pension plan assets Accrued pension obligation Contributions Benefits O A. $8,000,000 B. $3,000,000 deficit OC. $5,000,000 O D. $3,000,000 surplus $50,000,000 60,000,000 7,000,000 8,000,000 $45,000,000 42,000,000 10,000,000 8,000,000
rane importers provides the following pension plan Fair value of pension plan assets, January 1, 2025 Fair value of pension plan assets, December 31, 2025 Contributions to the plan in 2025 Benefits paid retirees in 2025 Tormation. Actual return on plan assets for 2025 $ $2,575,000 2,914,000 299,000 366,000 From the data above, compute the actual return on the plan assets for 2025.
Question 16# Buffalo Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan. Plan assets $463,200 Projected benefit obligation 578,200 Pension asset/liability 115,000 Accumulated OCI (PSC) 100,100 Dr. As a result of the operation of the plan during 2020, the following additional data are provided by the actuary. Service cost $86,600 Settlement rate, 8% Actual return on plan assets 53,200 Amortization of prior service cost 18,000 Expected return on plan assets 50,200 Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions 79,600 Contributions 99,600 Benefits paid retirees 85,100 (b) Prepare the journal entry for pension expense for 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the…
Crane Enterprises Ltd. provides the following information about its defined benefit pension plan: Balances or Values at December 31, 2023 Defined benefit obligation Vested benefit obligation Fair value of plan assets $2,710,000 1,629,393 2,255,546 Other pension plan data: Current service cost for 2023 93,000 Actual return on plan assets in 2023 129,000 Return on plan assets in 2023 using discount rate 173,920 Interest on January 1, 2023 defined benefit obligation 250,000 Funding of plan in 2023 91,406 Benefits paid 139,000 (a) Calculate the January 1, 2023 balances for the pension-related accounts if Crane follows IFRS. Defined benefit obligation Fair value of plan assets Net defined benefit +A +A
Question 19 Tyson, Inc sponsors a defined-benefit pension plan. The following data relates to the operation of the plan for the year 2021. Service cost $345.000 330,000 270.000 Plan contributions Actual return on plan assets Projected benefit obligation January 1 Fair value of plan assets, January 1 3,600,000 2,400,000 The expected return on plan assets and the settlement rate were both 10%. The amount of pension expense reported for 2021 is: OA$705,000 OR$465,000 Oc$435.000 OD$345.000