Pension data for David Emerson Enterprises include the following: Discount rate, 10% Projected benefit obligation, January...
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Pension data for David Emerson Enterprises include the following: Discount rate, 10% Projected benefit obligation, January 1 Projected benefit obligation, December 31 Accumulated benefit obligation, January 1 Accumulated benefit obligation, December 31 Cash contributions to pension fund, December 31 Benefit payments to retirees, December 31 Required: ($ in millions) $ 360 465 300 415 150 54 Assuming no change in actuarial assumptions and estimates, determine the service cost component of pension expense for the year ended December 31. Note: Enter your answer in millions (i.e., 10,000,000 should be entered as 10). Prepare a pension spreadsheet to show the relationship among the PBO, plan assets, prior service cost, the net gain, pension expense, and the net pension asset. Note: Enter credit amounts with a minus sign and debit amounts with a positive sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). ($ in millions) PBO Plan Assets Prior Service Cost-AOCI Net Gain- Pension AOCI Expense Cash Balance, January 1, 2024 Service cost Interest cost, 5% Expected return on assets Adjust for: Loss on assets Amortization of: Prior service cost Net Pension (Liability)/ Asset Net gain Gain on PBO Cash funding Retiree benefits Balance, December 31, 2024 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 1 0.2 points eBook Hint On January 1, 2024, Ravetch Corporation's projected benefit obligation was $30 million. During 2024, pension benefits paid by the trustee were $4 million. Service cost for 2024 is $12 million. Pension plan assets (at fair value) increased during 2024 by $6 million as expected. At the end of 2024, there were no pension-related other comprehensive income (OCI) accounts. The actuary's discount rate was 10%. Required: Determine the amount of the projected benefit obligation at December 31, 2024. Note: Enter your answers in millions. Amounts to be deducted should be indicated with a minus sign. Projected Benefit Obligation Print Beginning of 2024 References 60001 Actual return on assets Amortization of net gain Amortization of net loss Amortization of prior service cost 0 2 0.2 points eBook Print References Patel Industries has a noncontributory, defined benefit pension plan. Since the inception of the plan, the actuary has used as the discount rate the rate on high-quality corporate bonds, which recently has been 5%. During 2024, changing economic conditions caused the rate to change to 4%, and the actuary decided that 4% is the appropriate rate. Required: 1. Does the change in discount rate create a gain, or does it create a loss for Patel under U.S. GAAP? 2. Assume the magnitude of the change is $14.2 million. Prepare the appropriate journal entry to record any 2024 gain or loss under U.S. GAAP. If Patel prepares its financial statements according to U.S. GAAP, how will the company report the gain or loss? 3. If Patel prepares its financial statements according to International Financial Reporting Standards (IFRS), how will the company report the gain or loss assuming the magnitude of the change is $14.2 million? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Does the change in discount rate create a gain, or does it create a loss for Patel under U.S. GAAP? A decrease in the discount rate from 5% to 4% projected benefit obligation. When the obligation reported as a the , it is Required 1 Required 2 > 2 0.2 points Required 1 Required 2 Required 3 Assume the magnitude of the change is $14.2 million. Prepare the appropriate journal entry to record any 2024 gain or loss under U.S. GAAP. If Patel prepares its financial statements according to U.S. GAAP, how will the company report the gain or loss? Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). eBook Print References View transaction list Journal entry worksheet 1 Record gain or loss under U.S. GAAP. Note: Enter debits before credits. Event 1 General Jounral Debit Credit Show less 2 0.2 points eBook Print References Required 1 Required 2 Required 3 If Patel prepares its financial statements according to International Financial Reporting Standards (IFRS), how will the company report the gain or loss assuming the magnitude of the change is $14.2 million? Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). View transaction list Journal entry worksheet 1 Record gain or loss under IFRS. Note: Enter debits before credits. Event 1 General Journal Debit Credit Show less 0.2 3 points Phrases associated with pensions are listed under List A. Select the term in List B that is most appropriately associated with items under List A. List A List B eBook Print References 1. Future compensation levels estimated. 2. All funding provided by the employer. 3. Credit to OCI and debit to plan assets. 4. Retirement benefits specified by formula. 5. Trade-off between being relevant and representationally faithful. 6. Cumulative gains in excess of losses. 7. Current pay levels implicitly assumed. 8. Created by the passage of time. 9. Not contingent on future employment. 10. Risk borne by employee. 11. Increased by employer contributions. 12. Caused by plan amendment. 13. Loss on plan assets. 14. Excess over 10% of plan assets or PBO. Accumulated benefit obligation Actual return exceeds expected Amortize net loss-AOCI Choice between PBO and ABO 4 Pension data for Fahy Transportation Incorporated include the following: 0.2 points Discount rate, 6% Expected return on plan assets, 9% Actual return on plan assets, 10% Projected benefit obligation, January 1 Plan assets (fair value), January 1 eBook Plan assets (fair value), December 31 Benefit payments to retirees, December 31 Hint Required: ($ in millions) $ 790 760 810 72 Print References Assuming cash contributions were made at the end of the year, what was the amount of those contributions? Note: Enter your answer in millions (i.e., 10,000,000 should be entered as 10). Cash contributions million 5 Data pertaining to the postretirement health care benefit plan of Sterling Properties include the following for 2024: ($ in thousands) 0.2 points eBook Hint Print References Service cost Accumulated postretirement benefit obligation, January 1 Plan assets (fair value), January 1 Prior service cost-AOCI Net gain-AOCI (2024 amortization, $3) Retiree benefits paid (end of year) Contribution to health care benefit fund (end of year) Discount rate, 6% Return on plan assets (actual and expected), 10% Required: 1. Determine the postretirement benefit expense for 2024. $ 156 1,000 70 none 110 98 250 2. Prepare the appropriate journal entries to record the (a) postretirement benefit expense, (b) funding, and (c) retiree benefits for 2024. Complete this question by entering your answers in the tabs below. 5 0.2 points eBook Hint Print References ZU24. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the postretirement benefit expense for 2024. Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands (i.e., 10,000 should be entered as 10). ativement hanafit avman Amortization of net gain Amortization of net loss Amortization of prior service cost Cash contributions ($ in thousands) equired 1 0 Required 2 > 5 0.2 points Required 1 Required 2 Prepare the appropriate journal entries to record the (a) postretirement benefit expense, (b) funding, and (c) retiree benefits for 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in thousands (i.e., 10,000 should be entered as 10). eBook View transaction list Hint Print References Journal entry worksheet 1 2 3 Record the postretirement benefit expense. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit > Show less 5 0.2 points Required 1 Required 2 Prepare the appropriate journal entries to record the (a) postretirement benefit expense, (b) funding, and (c) retiree benefits for 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in thousands (i.e., 10,000 should be entered as 10). eBook View transaction list Hint Print References Journal entry worksheet 1 2 3 Record the funding. Note: Enter debits before credits. Transaction 2 General Journal Debit Credit Show less 5 0.2 points Required 1 Required 2 Prepare the appropriate journal entries to record the (a) postretirement benefit expense, (b) funding, and (c) retiree benefits for 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in thousands (i.e., 10,000 should be entered as 10). eBook View transaction list Hint Print References Journal entry worksheet < 1 2 Record the payment of retiree benefits. Note: Enter debits before credits. Transaction 3 General Journal Debit Credit Show less 6 Lorin Management Services has an unfunded postretirement benefit plan. On December 31, 2024, the following data were available concerning changes in the plan's accumulated postretirement benefit obligation with respect to one of Lorin's employees: Interest cost: ($69,725 9%) Service cost: ($72,000 1/18) 0.2 APBO at the beginning of 2024 points $ 69,725 6,275 4,000 Portion of EPBO attributed to 2024 $ 80,000 eBook Hint Print References APBO at the end of 2024 Required: 1. Over how many years is the expected postretirement benefit obligation being expensed (attribution period)? 2. What is the expected postretirement benefit obligation at the end of 2024? 3. When was the employee hired by Lorin? 4. What is the expected postretirement benefit obligation at the beginning of 2024? Note: Round final answer to the nearest whole dollars. 1. Number of years 2. Expected postretirement benefit obligation (ending) 3. The employee was hired by Lorin 4. Expected postretirement benefit obligation (beginning) years years before 2024 7 0.2 points eBook Print Abbott and Abbott has a noncontributory, defined benefit pension plan. At December 31, 2024, Abbott and Abbott received the following information: Projected Benefit Obligation Balance, January 1 Service cost Interest cost Benefits paid Balance, December 31 ($ in millions) $ 200 36 20 (10) $ 246 Plan Assets References Balance, January 1 Actual return on plan assets Contributions 2021 Benefits paid Balance, December 31 $ 80 9 36 (10) $ 115 The expected long-term rate of return on plan assets was 10%. There was no prior service cost and a negligible net lossAOCI on January 1, 2024. Required: 1. Determine Abbott and Abbott's pension expense for 2024. 2. Prepare the journal entries to record Abbott and Abbott's (a) pension expense, (b) funding, and (c) payment for 2024. 7 0.2 points 1. Determine Abbott and Abbott's pension expense for 2024. 2. Prepare the journal entries to record Abbott and Abbott's (a) pension expense, (b) funding, and (c) payment for 2024. Complete this question by entering your answers in the tabs below. eBook Required 1 Required 2 Print References Determine Abbott and Abbott's pension expense for 2024. Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Pension Expense Pension expense $ 0 Required 1 Required 2 > 7 Prepare the journal entries to record Abbott and Abbott's (a) pension expense, (b) funding, and (c) payment for 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). 0.2 points View transaction list eBook Print References Journal entry worksheet 1 2 3 Record the pension expense. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Record entry Clear entry View general journal > 7 Prepare the journal entries to record Abbott and Abbott's (a) pension expense, (b) funding, and (c) payment for 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). 0.2 points View transaction list eBook Print References Journal entry worksheet 1 2 3 Record the funding of plan assets. Note: Enter debits before credits. Transaction 2 General Journal Debit Credit Record entry Clear entry View general journal > 7 Prepare the journal entries to record Abbott and Abbott's (a) pension expense, (b) funding, and (c) payment for 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). 0.2 points View transaction list eBook Journal entry worksheet < 1 2 3 Print References Record the payment of benefits. Note: Enter debits before credits. Transaction 3 General Journal Debit Credit View general journal Record entry Clear entry 8 0.2 points eBook Print References Pension data for Sterling Properties include the following: Service cost, 2024 Projected benefit obligation, January 1, 2024 Plan assets (fair value), January 1, 2024 Prior service cost-AOCI (2024 amortization, $8) Net loss-AOCI (2024 amortization, $1) Interest rate, 6% Expected return on plan assets, 10% Actual return on plan assets, 11% Required: ($ in thousands) $ 112 850 900 80 101 Assume Sterling Properties prepares its financial statements according to International Financial Reporting Standards (IFRS). The interest rate on high-grade corporate bonds is 6%. Determine the net pension cost. Note: Enter your answer in thousands (i.e., 10,000 should be entered as 10). Net pension cost thousand 0.2 9 points eBook Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2024 (the end of Beale's fiscal year), the following pension-related data were available: Projected Benefit Obligation Balance, January 1, 2024 Service cost Interest cost, discount rate, 5% Gain due to changes in actuarial assumptions in 2024 Pension benefits paid ($ in millions) $ 440 46 22 (13) (22) Hint Balance, December 31, 2024 $ 473 Print Plan Assets ($ in millions) Balance, January 1, 2024 $ 490 References Actual return on plan assets 32 (Expected return on plan assets, $37) Cash contributions 73 Pension benefits paid (22) Balance, December 31, 2024 $ 573 January 1, 2024, balances: Pension asset ($ in millions) $ 50 42 89 Prior service cost-AOCI (amortization $6 per year) Net gain-AOCI (any amortization over 10 years) Required: Prepare a pension spreadsheet to show the relationship among the PBO, plan assets, prior service cost, the net gain, pension expense, and the net pension asset. Note: Enter credit amounts with a minus sign and debit amounts with a positive sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Pension data for David Emerson Enterprises include the following: Discount rate, 10% Projected benefit obligation, January 1 Projected benefit obligation, December 31 Accumulated benefit obligation, January 1 Accumulated benefit obligation, December 31 Cash contributions to pension fund, December 31 Benefit payments to retirees, December 31 Required: ($ in millions) $ 360 465 300 415 150 54 Assuming no change in actuarial assumptions and estimates, determine the service cost component of pension expense for the year ended December 31. Note: Enter your answer in millions (i.e., 10,000,000 should be entered as 10). Prepare a pension spreadsheet to show the relationship among the PBO, plan assets, prior service cost, the net gain, pension expense, and the net pension asset. Note: Enter credit amounts with a minus sign and debit amounts with a positive sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). ($ in millions) PBO Plan Assets Prior Service Cost-AOCI Net Gain- Pension AOCI Expense Cash Balance, January 1, 2024 Service cost Interest cost, 5% Expected return on assets Adjust for: Loss on assets Amortization of: Prior service cost Net Pension (Liability)/ Asset Net gain Gain on PBO Cash funding Retiree benefits Balance, December 31, 2024 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 1 0.2 points eBook Hint On January 1, 2024, Ravetch Corporation's projected benefit obligation was $30 million. During 2024, pension benefits paid by the trustee were $4 million. Service cost for 2024 is $12 million. Pension plan assets (at fair value) increased during 2024 by $6 million as expected. At the end of 2024, there were no pension-related other comprehensive income (OCI) accounts. The actuary's discount rate was 10%. Required: Determine the amount of the projected benefit obligation at December 31, 2024. Note: Enter your answers in millions. Amounts to be deducted should be indicated with a minus sign. Projected Benefit Obligation Print Beginning of 2024 References 60001 Actual return on assets Amortization of net gain Amortization of net loss Amortization of prior service cost 0 2 0.2 points eBook Print References Patel Industries has a noncontributory, defined benefit pension plan. Since the inception of the plan, the actuary has used as the discount rate the rate on high-quality corporate bonds, which recently has been 5%. During 2024, changing economic conditions caused the rate to change to 4%, and the actuary decided that 4% is the appropriate rate. Required: 1. Does the change in discount rate create a gain, or does it create a loss for Patel under U.S. GAAP? 2. Assume the magnitude of the change is $14.2 million. Prepare the appropriate journal entry to record any 2024 gain or loss under U.S. GAAP. If Patel prepares its financial statements according to U.S. GAAP, how will the company report the gain or loss? 3. If Patel prepares its financial statements according to International Financial Reporting Standards (IFRS), how will the company report the gain or loss assuming the magnitude of the change is $14.2 million? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Does the change in discount rate create a gain, or does it create a loss for Patel under U.S. GAAP? A decrease in the discount rate from 5% to 4% projected benefit obligation. When the obligation reported as a the , it is Required 1 Required 2 > 2 0.2 points Required 1 Required 2 Required 3 Assume the magnitude of the change is $14.2 million. Prepare the appropriate journal entry to record any 2024 gain or loss under U.S. GAAP. If Patel prepares its financial statements according to U.S. GAAP, how will the company report the gain or loss? Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). eBook Print References View transaction list Journal entry worksheet 1 Record gain or loss under U.S. GAAP. Note: Enter debits before credits. Event 1 General Jounral Debit Credit Show less 2 0.2 points eBook Print References Required 1 Required 2 Required 3 If Patel prepares its financial statements according to International Financial Reporting Standards (IFRS), how will the company report the gain or loss assuming the magnitude of the change is $14.2 million? Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). View transaction list Journal entry worksheet 1 Record gain or loss under IFRS. Note: Enter debits before credits. Event 1 General Journal Debit Credit Show less 0.2 3 points Phrases associated with pensions are listed under List A. Select the term in List B that is most appropriately associated with items under List A. List A List B eBook Print References 1. Future compensation levels estimated. 2. All funding provided by the employer. 3. Credit to OCI and debit to plan assets. 4. Retirement benefits specified by formula. 5. Trade-off between being relevant and representationally faithful. 6. Cumulative gains in excess of losses. 7. Current pay levels implicitly assumed. 8. Created by the passage of time. 9. Not contingent on future employment. 10. Risk borne by employee. 11. Increased by employer contributions. 12. Caused by plan amendment. 13. Loss on plan assets. 14. Excess over 10% of plan assets or PBO. Accumulated benefit obligation Actual return exceeds expected Amortize net loss-AOCI Choice between PBO and ABO 4 Pension data for Fahy Transportation Incorporated include the following: 0.2 points Discount rate, 6% Expected return on plan assets, 9% Actual return on plan assets, 10% Projected benefit obligation, January 1 Plan assets (fair value), January 1 eBook Plan assets (fair value), December 31 Benefit payments to retirees, December 31 Hint Required: ($ in millions) $ 790 760 810 72 Print References Assuming cash contributions were made at the end of the year, what was the amount of those contributions? Note: Enter your answer in millions (i.e., 10,000,000 should be entered as 10). Cash contributions million 5 Data pertaining to the postretirement health care benefit plan of Sterling Properties include the following for 2024: ($ in thousands) 0.2 points eBook Hint Print References Service cost Accumulated postretirement benefit obligation, January 1 Plan assets (fair value), January 1 Prior service cost-AOCI Net gain-AOCI (2024 amortization, $3) Retiree benefits paid (end of year) Contribution to health care benefit fund (end of year) Discount rate, 6% Return on plan assets (actual and expected), 10% Required: 1. Determine the postretirement benefit expense for 2024. $ 156 1,000 70 none 110 98 250 2. Prepare the appropriate journal entries to record the (a) postretirement benefit expense, (b) funding, and (c) retiree benefits for 2024. Complete this question by entering your answers in the tabs below. 5 0.2 points eBook Hint Print References ZU24. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the postretirement benefit expense for 2024. Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands (i.e., 10,000 should be entered as 10). ativement hanafit avman Amortization of net gain Amortization of net loss Amortization of prior service cost Cash contributions ($ in thousands) equired 1 0 Required 2 > 5 0.2 points Required 1 Required 2 Prepare the appropriate journal entries to record the (a) postretirement benefit expense, (b) funding, and (c) retiree benefits for 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in thousands (i.e., 10,000 should be entered as 10). eBook View transaction list Hint Print References Journal entry worksheet 1 2 3 Record the postretirement benefit expense. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit > Show less 5 0.2 points Required 1 Required 2 Prepare the appropriate journal entries to record the (a) postretirement benefit expense, (b) funding, and (c) retiree benefits for 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in thousands (i.e., 10,000 should be entered as 10). eBook View transaction list Hint Print References Journal entry worksheet 1 2 3 Record the funding. Note: Enter debits before credits. Transaction 2 General Journal Debit Credit Show less 5 0.2 points Required 1 Required 2 Prepare the appropriate journal entries to record the (a) postretirement benefit expense, (b) funding, and (c) retiree benefits for 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in thousands (i.e., 10,000 should be entered as 10). eBook View transaction list Hint Print References Journal entry worksheet < 1 2 Record the payment of retiree benefits. Note: Enter debits before credits. Transaction 3 General Journal Debit Credit Show less 6 Lorin Management Services has an unfunded postretirement benefit plan. On December 31, 2024, the following data were available concerning changes in the plan's accumulated postretirement benefit obligation with respect to one of Lorin's employees: Interest cost: ($69,725 9%) Service cost: ($72,000 1/18) 0.2 APBO at the beginning of 2024 points $ 69,725 6,275 4,000 Portion of EPBO attributed to 2024 $ 80,000 eBook Hint Print References APBO at the end of 2024 Required: 1. Over how many years is the expected postretirement benefit obligation being expensed (attribution period)? 2. What is the expected postretirement benefit obligation at the end of 2024? 3. When was the employee hired by Lorin? 4. What is the expected postretirement benefit obligation at the beginning of 2024? Note: Round final answer to the nearest whole dollars. 1. Number of years 2. Expected postretirement benefit obligation (ending) 3. The employee was hired by Lorin 4. Expected postretirement benefit obligation (beginning) years years before 2024 7 0.2 points eBook Print Abbott and Abbott has a noncontributory, defined benefit pension plan. At December 31, 2024, Abbott and Abbott received the following information: Projected Benefit Obligation Balance, January 1 Service cost Interest cost Benefits paid Balance, December 31 ($ in millions) $ 200 36 20 (10) $ 246 Plan Assets References Balance, January 1 Actual return on plan assets Contributions 2021 Benefits paid Balance, December 31 $ 80 9 36 (10) $ 115 The expected long-term rate of return on plan assets was 10%. There was no prior service cost and a negligible net lossAOCI on January 1, 2024. Required: 1. Determine Abbott and Abbott's pension expense for 2024. 2. Prepare the journal entries to record Abbott and Abbott's (a) pension expense, (b) funding, and (c) payment for 2024. 7 0.2 points 1. Determine Abbott and Abbott's pension expense for 2024. 2. Prepare the journal entries to record Abbott and Abbott's (a) pension expense, (b) funding, and (c) payment for 2024. Complete this question by entering your answers in the tabs below. eBook Required 1 Required 2 Print References Determine Abbott and Abbott's pension expense for 2024. Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Pension Expense Pension expense $ 0 Required 1 Required 2 > 7 Prepare the journal entries to record Abbott and Abbott's (a) pension expense, (b) funding, and (c) payment for 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). 0.2 points View transaction list eBook Print References Journal entry worksheet 1 2 3 Record the pension expense. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Record entry Clear entry View general journal > 7 Prepare the journal entries to record Abbott and Abbott's (a) pension expense, (b) funding, and (c) payment for 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). 0.2 points View transaction list eBook Print References Journal entry worksheet 1 2 3 Record the funding of plan assets. Note: Enter debits before credits. Transaction 2 General Journal Debit Credit Record entry Clear entry View general journal > 7 Prepare the journal entries to record Abbott and Abbott's (a) pension expense, (b) funding, and (c) payment for 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). 0.2 points View transaction list eBook Journal entry worksheet < 1 2 3 Print References Record the payment of benefits. Note: Enter debits before credits. Transaction 3 General Journal Debit Credit View general journal Record entry Clear entry 8 0.2 points eBook Print References Pension data for Sterling Properties include the following: Service cost, 2024 Projected benefit obligation, January 1, 2024 Plan assets (fair value), January 1, 2024 Prior service cost-AOCI (2024 amortization, $8) Net loss-AOCI (2024 amortization, $1) Interest rate, 6% Expected return on plan assets, 10% Actual return on plan assets, 11% Required: ($ in thousands) $ 112 850 900 80 101 Assume Sterling Properties prepares its financial statements according to International Financial Reporting Standards (IFRS). The interest rate on high-grade corporate bonds is 6%. Determine the net pension cost. Note: Enter your answer in thousands (i.e., 10,000 should be entered as 10). Net pension cost thousand 0.2 9 points eBook Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2024 (the end of Beale's fiscal year), the following pension-related data were available: Projected Benefit Obligation Balance, January 1, 2024 Service cost Interest cost, discount rate, 5% Gain due to changes in actuarial assumptions in 2024 Pension benefits paid ($ in millions) $ 440 46 22 (13) (22) Hint Balance, December 31, 2024 $ 473 Print Plan Assets ($ in millions) Balance, January 1, 2024 $ 490 References Actual return on plan assets 32 (Expected return on plan assets, $37) Cash contributions 73 Pension benefits paid (22) Balance, December 31, 2024 $ 573 January 1, 2024, balances: Pension asset ($ in millions) $ 50 42 89 Prior service cost-AOCI (amortization $6 per year) Net gain-AOCI (any amortization over 10 years) Required: Prepare a pension spreadsheet to show the relationship among the PBO, plan assets, prior service cost, the net gain, pension expense, and the net pension asset. Note: Enter credit amounts with a minus sign and debit amounts with a positive sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).
Expert Answer:
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
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