The following information relates to a firm's pension plan. Prior service cost due to 2013 amendment................................$ 60,000
Question:
The following information relates to a firm's pension plan.
Prior service cost due to 2013 amendment................................$ 60,000
PBO, January 1, 2013......................................................1,000,000
FMV, January 1, 2013......................................................1,200,000
Settlement interest rate..............................................................7%
Expected return on plan assets......................................................9%
Actual return on plan assets.........................................................8%
Liability loss (gain)............................................................(40,000)
Contribution to plan trustee (made at end of year)........................100,000
Service cost.....................................................................115,000
Payments to retired employees................................................30,000
REQUIRED
a. Compute the December 31, 2013, PBO and FMV of pension assets.
b. Compute 2013 pension expense.
c. Use the financial statements effects template to show the effects on the 2013 financial statements.
Financial StatementsFinancial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Step by Step Answer:
a b Pension Expense PBO January 1 2013 1000000 Service Cost 115000 115000 Interest on PBO 1000000 7 ...View the full answer
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1285190907
8th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
