Indicate the reporting of the 2012 pension amounts in the

Assignment Help Accounting Basics

Reference no: EM13576244

Complete the following exercise. Submit journal entries in an Excel file and written segments in an MS Word document. Label each question clearly. For written answers, please make sure your responses are well-written, formatted per APA Style, and have proper citation(s), if needed.

Melanie Vail Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2012, the following balances relate to this plan.

Plan assets	$480,000
Projected benefit obligation	625,000
Accumulated OCI (PSC)	100,000 Dr.

As a result of the operation of the plan during 2012, the following additional data are provided by the actuary.

Service cost for 2012	$90,000
Settlement rate	9%
Actual return on plan assets in 2012	57,000
Amortization of prior service cost	19,000
Expected return on plan assets	52,000
Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions	76,000
Contributions in 2012	99,000
Benefits paid retirees in 2012	85,000

Click here to download an Excel workbook containing the spreadsheets you will need for this exercise.

Use the spreadsheet Pensions to prepare a pension worksheet. On the pension worksheet, compute pension expense, pension asset/liability, projected benefit obligation, plan assets, prior service cost, and net gain or loss.
Compute the same items as in (1), assuming that the settlement rate is now 7% and the expected rate of return is 10%.
Prepare the journal entry using the spreadsheet Journal Entries to record pension expense in 2012.
Indicate the reporting of the 2012 pension amounts in the income statement and balance sheet using the spreadsheet Pensions.

Reference no: EM13576244

Questions Cloud

The overhead allocation rate in franz companys job order : the overhead allocation rate in franz companys job order cost accounting system applies overhead based on direct labor

A standardized test has a mean of 104 and a standard : a standardized test has a mean of 104 and a standard deviation of 16. we want to be 98 certain that we are withing 4

You are trying a new food recipe and the probability that a : you are trying a new food recipe and the probability that a friend of yours likes that food is 0.85. if you invite 18

Both the reported value of longt-term and periodic interest : both the reported value of longt-term and periodic interest charges should be based on unamortized issue price and

Indicate the reporting of the 2012 pension amounts in the : complete the following exercise. submit journal entries in an excel file and written segments in an ms word document.

For simplicity assume that the demand increase and margins : investing 2000000 in tqms channel support systems initiative will at a minimum increase demand for your products 1.7 in

Right foot shoes issued a two-year 46000 interest-bearing : right foot shoes issued a two-year 46000 interest-bearing note on january 1 2008 in exchange for new equipment.

Quantitative analysis on the current state push numbers in : it is currently busy season at the professional service firm. you are currently juggling multiple clients working 12

In addition to the expenses listed above kim could have : during the current year kim incurs the following expenses with respect to her beachfront condominium in hawaiiitems

User Account

All Pages