Question: At the end of the current year Mapie Company has
At the end of the current year, Mapie Company has a projected benefit obligation of $439,000 for its pension plan, and the fair value of its pension plan assets is $450,000. Maple has a debit balance of $5,000 in its Accrued/Prepaid Peasion Cost account. Prepare the journal entry' to adjust its Accrued/Prepaid Pension Cost account. Assume that the difference between the projected benefit obligation and the fair value of the pension plan assets is due to the actual return on plan assets being different from the expected return on plan assets. Indicate why and where (and the amount) Maple would report its Accrucd/Prepaid Pension Cost.
Answer to relevant QuestionsAt the end of the current year, Chelsey Company has a projected benefit obligation of $600,000 for its pension plan, and the lair value of its pension plan assets is $580,000. Chelsey has a credit balance of $32,000 in its ...Straight-Line Amortization At the beginning of 2016, Brent Company amended its defined benefit pension plan. The amendment entitled five active participating employees to receive increased future benefits based on their ...TAN Company has a defined benefit pension plan for its employees. The plan has been in existence for several years. During 2015, for the first time, TAN experienced a difference between its expected and actual projected ...Income smoothing is the concept of reducing the period-to-period fluctuations in revenues and expenses in order to decrease the variability of reported income. GAAP generally does not support income smoothing; however, a ...List five benefits to the lessee of leasing versus purchasing an asset.
Post your question