Question: Hollander City maintains a defined benefit pension plan for its employees. In a recent year, the city contributed $12 million to its pension fund. However,

Hollander City maintains a defined benefit pension plan for its employees. In a recent year, the city contributed $12 million to its pension fund. However, its annual required contribution as calculated by its actuary was $22 million. The city accounts for the pension contributions in the general fund.
Required
1. Record the pension expenditure and related liability in the general fund and account group.
2. Suppose that in the following year the city contributed $14 million to its pension fund, but its annual required contribution per its actuary was only $12 million. Prepare the appropriate journal entries.

Step by Step Solution

★★★★★

3.49 Rating (189 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

1 Year 1 General Fund Expenditures 12000000 Cash 12000000 To ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

418-B-A-N-P-O (683).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Manchester City maintains a defined benefit pension plan for its employees. In a recent year, the city contributed $15 million to its pension fund. However, its annual pension expense and increase in...

Thorp Inc. maintains a defined benefit pension plan for its employees. Pension plan balances as at January 1, 2020 include: Projected Benefit Obligation (PBO), January 1, 2020 $ 600,000 Plan assets...

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...

Recorded pension expenditures are not always influenced by actuarial computations. Hayward City maintains a defined benefit pension plan for its employees. In a recent year, the city contributed $ 5...

EX. 10-5 Recorded pension expenditures are not always influenced by actuarial computations. Hayward City maintains a defined benefit pension plan for its employees. In a recent year, the city...

Pebble city maintains a defined benefit pension plan for its employees. In a recent year, the city's consulting actuary calculated that the city's annual required contribution for the year was...

EX. 10-4 Who selects scholarship recipients matters A wealthy alumnae donates $500.000 in marketable securities to her alma mater to establish a scholar- ship fund. Per the trust agreement only the...

Hayward City maintains a defined benefit pension plan for its employees. In a recent year, the city contributed $5 million to its pension fund. However, its annual pension cost as calculated by its...

EX. 10-5 Recorded pension expenditures are not always influenced by actuarial computations. Hayward City maintains a defined benefit pension plan for its employees. In a recent year, the city con-...

Record pension expenditures are not always influenced by actuarial computations. Note I only need the NUMBER 2 answered, number one is not needed. Hayward City maintains a defined benenfit pension...

Discuss how place, time, possession, and communication utilities can be created for each of the following:

Sam Holdings is planning to open a new wholesaling operation. The target operating profit margin is 25%. The unit contribution margin will be 40% of sales. Average annual sales are forecast to be...

Which statement is false? The initial measurement of an ARO is at current fair value. An expected cash flow approach is often used rather than fair value. The cost of workovers falls within the scope...

A continuous foundation with a width of 1 m is located on a slope made of clay soil. Refer to Figure 7.19 and let D f = 1 m, H = 4 m, b = 2 m, = 16.8 kN/m 3 , c = c u = 68 kN/m 2 , = 0, and b = 60....

The attached wheels roll without slipping on the plates A and B, which are moving in opposite directions as shown. If v A = 60 mm/s to the right and v B = 200 mm/s to the left, determine the speeds...

Perform an experimental analysis of the efficiency (number of character comparisons performed) of the brute-force and Boyer-Moore pattern-matching algorithms for varying-length patterns.

Design an algorithm to generate the sequence of positive integers (in increasing order) whose only prime divisors are 2 and 3; that is, your program should produce the sequence 2, 3, 4, 6, 8, 9, 12,...

Each of the two rods of mass m is welded to the face of the disk, which rotates about the vertical axis with a constant angular velocity w. Determine the bending moment M acting on each rod at its...

Let(X, Y ) be a random vector of continuous type with joint PDF f (x, y). Define Z = X + Y, U = X Y, V = XY, W = X Y . Then, prove that the PDFs of Z, U, V , and W are, respectively, given by fZ (z)...

Prepare a journal entry (or entries) to account for the parents investment income for the current year if the reported income of its 80 percent-owned subsidiary is $50,000 and the consolidated entity...

Calculate the parents income from its 75 percent-owned subsidiary if the reported net income of the subsidiary for the period is $100,000 and the consolidated entity has a constructive loss of $8,000...

The Whistling Straits Corporation needs to raise $45 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed...

If $ 2500 is invested for eight years and interest is compounded continuously with a 7% rate, then the compound amount is

4 points Cachita Haynes works as a currency speculator for Vatic Capital of Los Angeles. The current spot rate is 1120.00/5. She must choose between the following 90-day options on the Japanese yen:...