Calculate the prior service cost amortization for 2011

Assignment Help Accounting Basics
Reference no: EM131002803

Southeast Technology provides postretirement health care benefits to employees. On January 1, 2011, the following plan-related data were available:
On January 1, 2011, Southeast amends the plan in response to spiraling health care costs. The amendment establishes an annual maximum of $3,000 for medical benefits that the plan will provide. The actuary determines that the effect of this amendment is to decrease the APBO by $80,000. Management amortizes prior service cost on a straight-line basis. The interest rate is 8%. The service cost for 2011 is $114,000.

Required:

1. Calculate the prior service cost amortization for 2011.

2. Calculate the postretirement benefit expense for 2011. 

Reference no: EM131002803

Questions Cloud

Prepare the journal entry to record the expense : Calculate the postretirement benefit expense for 2011. Prepare the journal entry to record the expense.
Find the percent of the undergraduates enrolled : Find the percent of the undergraduates enrolled in each of the four types of programs who were 18 to 24 years old. Make a bar graph to compare these percent's
Summative discussion board : How did participating in discussions help your understanding of the subject matter? Is anything still unclear that could be clarified?
Distribution of income of families : The distribution of income of families in the US in 1979 (in actual dollars uncorrected for in?ation) is shown in the table below (Prob 4.28):
Calculate the prior service cost amortization for 2011 : Calculate the prior service cost amortization for 2011. Calculate the postretirement benefit expense for 2011.
Months between occurrences of safety violations : The time in months between occurrences of safety violations in a toll manufacturing facility is shown in the table below for three operators, "A," "B," "C".
New diagnostic tool for the treatment of diabetes : Identify a research or evidence-based article that focuses comprehensively on a specific intervention or new diagnostic tool for the treatment of diabetes in adults or children.
What is the area of the paper in mks units : You measure a sheet of paper. The width is 8.49 inches and the length is 11.09 inches. What is the area of the paper in MKS units (m2)?
Using the service method calculate the amount : Using the straight-line method, calculate the amount of prior service cost to be amortized to pension expense in each of the next 10 years.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Accrual of interest and amortization of premium

Prepare journal entries to record the sale of the bonds on March 1, the accrual of interest and amortization of premium on August 31, and the first interest payment on September 1. Use the effective interest method to amortize the premium.

  Sufficient years to retire the bonds

Kate Greenway Corporation, having recently issued a $20 million, 15-year bond issue, is committed to make annual sinking fund deposits of $620,000. The deposits are made on the last day of each year and yield a return of 10%. Will the fund at the ..

  Compute trintos current ratio

Compute Trinton's current ratio, debt ration and earnings per share.

  What amount of drawings was made

Net income is $29,000. Beginning capital balance was $34,000. Ending capital balance was $55,000. No capital contributions were made by the owner during the year. What amount of drawings was made?

  The allowance for doubtful accounts balance at the

the chs company has provided the following information bull accounts receivable written-off as uncollectible during

  The austin land co sold lanbd for 85000 in cash the land

the austin land co sold lanbd for 85.000 in cash. the land was originally purchased for 65000 and at the time of sale

  Convenience of location friendly personnel value for money

A researcher wishes to compare two hotels on the following attributes: Convenience of location Friendly personnel Value for money a. Design a Likert scale to accomplish this task.

  Abc company produces product x product y and product z all

abc company produces product x product y and product z. all three products require processing on specialized finishing

  Gross income as the recovery of a prior deduction

Orange Furniture must include $ in gross income as the recovery of a prior deduction.

  Humanistic approach of a terminally ill patient

In this summary the care of a dying person affects the dying person and his or her family. There are two aspects that can happen to each of us "birth and death", which is a joyful and painful personal experience for us all. Dying and death has mul..

  Flip company purchased equipment on january 1 2011 for

flip company purchased equipment on january 1 2011 for 90000. it is estimated that the equipment will have a 5000

  Different approaches to system installation

What are the different approaches to system installation? Which is the most costly and least expensive? What are the risks with each method?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd