Interest (Cost) Rate 8% Expected Rate of Return on Plan Assets 6% Actual Rate of Return...

 

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Interest (Cost) Rate 8% Expected Rate of Return on Plan Assets 6% Actual Rate of Return on Plan Assets 4% Projected benefit obligation at the beginning of 2002 $ 350,000 Service cost, 2002 $ 42,000 $ (26,000) CY G/L on PBO from changes in assumptions $ (33,000) Loss (Gain) on PBO for the current year Less: Benefits paid to retirees during the year Projected benefit obligation at the end of 2002 $ 361,000 $ 380,000 $ 48,000 $ (33,000) $ 410,200 Plan assets at the beginning of the year Cash contributions to the pension plan in 2002 Less: Benefits paid to retirees during the year (same as above) Plan assets at the end of 2002 Beginning balance in cash account $ 80,000 Additional information reported from the actuary and plan trustee: $75,375 PY changes to plan formula $ (77,000) PY difference between actual/expected retum on plan Prior Service Costs incurred beginning of 2001 due to a plan amendment Beginning 2002 year balance AOCI for Net Gain (prev. gains > prev. losses) assets AND PY G/L on PBO from assumptions Average remaining service years of employees 15 years Beginning of year 2002 balance in AOCI for PSC $ 62,000 8. What is the journal entry booked for the interest cost incurred in Year 2002? A. Debit Interest Expense for $42,000 and Credit Cash for $42,000 B. Debit Interest Expense for $42,000 and Credit Accrued Interest Payable for $42,000 C. Debit Pension Expense for $42,000 and Credit PBO for $42,000 D. Debit PBO for $42,000 and Credit Interest Expense for $42,000 9. What is the adjustment for gain or loss on plan assets for Year 2002? Enter a gain as a positive value, loss as a negative value, or 0 if neither is incurred. Do not use any symbols. 10. What is the journal entry recorded to amortize Prior Service Costs for the year? A. Debit Pension Expense for $4,133 and Credit OCI (Equity) for $4,133 B. Debit Pension Expense for $5,025 and Credit OCI (Equity) for $5,025 C. Debit OCI (Equity) for $5,025 and Credit Pension Expense for $5,025 D. Debit OCI (Equity) for $4,133 and Credit Pension Expense for $4,133 Interest (Cost) Rate 8% Expected Rate of Return on Plan Assets 6% Actual Rate of Return on Plan Assets 4% Projected benefit obligation at the beginning of 2002 $ 350,000 Service cost, 2002 $ 42,000 $ (26,000) CY G/L on PBO from changes in assumptions $ (33,000) Loss (Gain) on PBO for the current year Less: Benefits paid to retirees during the year Projected benefit obligation at the end of 2002 $ 361,000 $ 380,000 $ 48,000 $ (33,000) $ 410,200 Plan assets at the beginning of the year Cash contributions to the pension plan in 2002 Less: Benefits paid to retirees during the year (same as above) Plan assets at the end of 2002 Beginning balance in cash account $ 80,000 Additional information reported from the actuary and plan trustee: $75,375 PY changes to plan formula $ (77,000) PY difference between actual/expected retum on plan Prior Service Costs incurred beginning of 2001 due to a plan amendment Beginning 2002 year balance AOCI for Net Gain (prev. gains > prev. losses) assets AND PY G/L on PBO from assumptions Average remaining service years of employees 15 years Beginning of year 2002 balance in AOCI for PSC $ 62,000 8. What is the journal entry booked for the interest cost incurred in Year 2002? A. Debit Interest Expense for $42,000 and Credit Cash for $42,000 B. Debit Interest Expense for $42,000 and Credit Accrued Interest Payable for $42,000 C. Debit Pension Expense for $42,000 and Credit PBO for $42,000 D. Debit PBO for $42,000 and Credit Interest Expense for $42,000 9. What is the adjustment for gain or loss on plan assets for Year 2002? Enter a gain as a positive value, loss as a negative value, or 0 if neither is incurred. Do not use any symbols. 10. What is the journal entry recorded to amortize Prior Service Costs for the year? A. Debit Pension Expense for $4,133 and Credit OCI (Equity) for $4,133 B. Debit Pension Expense for $5,025 and Credit OCI (Equity) for $5,025 C. Debit OCI (Equity) for $5,025 and Credit Pension Expense for $5,025 D. Debit OCI (Equity) for $4,133 and Credit Pension Expense for $4,133

Answer rating: 100% (QA)

Part 8 Beginning Projected Benefit Obligation 350000 Interest Rate 8 Interest cost for the year 3500... View the full answer