accounting help

Project Description:

need help with accounting task.

e19-1 pension expense
the bailey company has had a defined pension plan for several years. at the end of 2013, bailey’s actuary provided the following information for 2013 regarding the pension plan: (1) service cost, $115,000; (2) expected return on plan assets, $14,000; (3) amortization of net loss, $2,000; (4) interest on projected benefit obligation, $16,000; (5) amortization of prior service costs, $4,000. bailey decides to fund an amount at the end of 2013 equal to its pension expense.
1. compute the amount of bailey’s pension expense for 2013 and prepare related journal entry.
2. if bailey had decided to fund an amount less than the 2013 pension expense how would the company’s balance sheet be affected?
e 19-4 pension expense different than funding over one year
verna company has had a defined benefit plan for several years. at the end of 2013, verna accumulated the following information: (1) service cost for 2013, $127,000; (2) projected benefit obligation, 1/1/13, $634,000; (3) discount rate, 9%; (4) plan assets, 1/1/13, $589,000; and (5) expected long term rate of return on plan assets, 9%. there are no other components of verna’s pension expense. verna had an accrued/prepaid pension cost liability at the end of 2012. verna contributed $128,000 to the pension plan at the end of 2013.
compute the amount verna’s pension expense for 2013 and prepare the related journal entries.
several years ago, lewad company established a define benefit plan for its employees. the following information is available for 2013 in regard to its pension plan (1) discount rate 10% (2) service cost $142,000 (3) plan assets (1/1), $659,000 and (4) expected return on plan assets $65,900. there is no amortization of prior to service cost and there is no gain or loss. on december 31,2013 lewad contributed $143,000 to the pension plan resulting in a credit to accrued/prepaid pension cost of $8,200.
1. compute the amount of lewad’s projected benefit obligation on january 1, 2013.
2. how would a decrease in the discount rate affect lewad’s pension expense?

p19-12 accounting for an oprb plan
on january 1, 2013 vasby software company adopted a healthcare plan for its retired employee. to determine eligibility for benefits, vasby retroactively gives credit to the date of hire for each employee. the service cost for 2013 is $8,000. the plan is not funded and the discount rate is 10%. all employees were hired at age 28 and become eligible for full benefits at age 58. employee c was paid $7,000 for post retirement healthcare benefits for 2013. on december 31, 2013, the accumulated post retirement benefit obligation for employee b and c were $77,000 and $41,500 respectively. additional information on january 1, 2013 is as follows:
employee status age expected retirement age accumulated postretirement benefit obligation
1. employee 31 65 $14,000
2. employee 55 65 $70,000
3. retired 67 - $45,000
1. compute the oprb expense for 2013 if vasby uses the average remaining service life to amortize the prior service cost.
2. prepare all the required journal entries for 2013 if the plan is not funded.

e20-2 lessee accounting with payments made at beginning of year
adden company signs a lease agreement dated january 1, 2013, that provides for it to lease heavy equipment from scott rental company beginning january 1, 2013. the lease terms, provisions, and related events are as follows:
1. the lease term is 4 years. the lease is noncancelabe and requires annual rental payments of $20,000 each to be paid in advance at the beginning of the year.
2. the cost, and also fair value, of the heavy equipment to scott at the inception of the lease is $68,036.62. the equipment has an estimated life of 4 years and has a zero estimated residual value at the end of this time.
3. adden agrees to pay all executory costs.
4. the lease contains no renewal or bargain purchase option.
5. scott’s interest rate implicit in the lease is 12%. adden is aware of this rate, which is equal to its borrowing rate.
6. adden uses the straight line method to record depreciation on similar equipment.
7. executory costs paid at the end of the year by adden are:
2013 2014
insurance, $1,500 insurance, $1,300
property taxes, $6,000 property taxes, $5,500
1. examine and evaluate each capitalization creiteria and determine what type of lease this is for adden.
2. prepare a table summarizing the lerase payments and interest expense for adden.
3. prepare journal entries for adden for the years 2013 and 2014.
e20-4 comparisons of operating and sales type leases
on january 1, 2013 nelson company leases certain property to queens company at an annual rental of $60,000 payable in advance at the beginning of each year for 8 years. the first payment is received immediately. the lease property, which is new, cost $175,000 and has an estimated economic life of 8 years and no residual value. the interest rate implicit in the lease is 12% and the lease is noncancelable. nelson had no other costs associated with this lease. it should have accounted for this lease as a sales type lease but mistakenly treated it as an operating lease.
compute the effect on income before income taxes during the first year of the lease as a result of nelson’s classification of the lease as an operating rather than a sales type lease. round your answer to the nearest dollar.
Skills Required:
Project Stats:

Price Type: Negotiable

Total Proposals: 3
1 Current viewersl
209 Total views
Project posted by:


Proposals Reputation Price offered
  • 4.2
    37 Jobs 24 Reviews
    $70 in 0 Day
  • 3.7
    12 Jobs 3 Reviews
    $0 in 0 Day