Prepare journal entries to reflect pension plan transactions

Assignment Help Financial Accounting
Reference no: EM131178398

E 20-19 (Postretirement Benefit Expense Computation)

 

Kreter Co. provides the following information about its postretirement benefit plan for the year 2014.

 

Service cost

$45,000

Contribution to the plan

10,000

Actual and expected return on plan assets

11,000

Benefits paid

20,000

Plan assets at January 1, 2014

110,000

Accumulated postretirement benefi t obligation at January 1, 2014

330,000

Discount rate

8%

 

Instructions

 

Compute the postretirement benefit expense for 2014.

 

P20-8 (Comprehensive 2-Year Worksheet) Lemke Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2014 and 2015.

 


2014

2015

Projected benefit obligation, January 1

$600,000


Plan assets (fair value and market-related value), January 1

410,000


Pension asset/liability, January 1

190,000 Cr.


Prior service cost, January 1

160,000


Service cost

40,000

$59,000

Settlement rate

10%

10%

Expected rate of return

10%

10%

Actual return on plan assets

36,000

61,000

Amortization of prior service cost

70,000

50,000

Annual contributions

97,000

81,000

Benefits paid retirees

31,500 54,000


Increase in projected benefit obligation due to

 

 

changes in actuarial assumptions

87,000

-0-

Accumulated benefit obligation at December 31

721,800

789,000

Average service life of all employees

 

20 years

Vested benefit obligation at December 31

 

464,000

 

Instructions

 

(a) Prepare a pension worksheet presenting both years 2014 and 2015 and accompanying computations and amortization of the loss (2015) using the corridor approach.

 

(b) Prepare the journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31 of each year.

 

(c) For 2015, indicate the pension amounts reported in the financial statements.

Reference no: EM131178398

Questions Cloud

Compute the required rate of return on the stock : The firm is expected to pay a dividend of $4.20 in the upcoming year. Dividends are expected to grow at the rate of 8% per year. The riskfree rate of return is 3% and the expected return on the market portfolio is 12%. Investors use the CAPM to compu..
Calculate the minimum storage tank size for water : Estimate the peak hot water demand of an 18-unit condominium having a single water heating system. Each unit has two full bathrooms and a clothes washing machine. Calculate the minimum storage tank size for this water heating system.
Powerful suite of techniques in today e-marketing world : Microtargeting has become a powerful suite of techniques in today's e-marketing world, allowing 'intimate' personalisation on a massive scale. By closely tracking consumers, voters and other constituents, companies can understand and use predictiv..
What would the return on equity be after the refinancing : The NEWT Company is located in a country where there are no taxes and there are perfect capital markets so that there are no bankruptcy costs. The corporation currently has $25 million in debt outstanding and the value of its equity is $75 million. W..
Prepare journal entries to reflect pension plan transactions : Prepare the journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31 of each year. For 2015, indicate the pension amounts reported in the financial statements.
Discuss the effect on the assessable income of the parent : Discuss the effect on the assessable income of the parent and would your answer differ if she wrote the story for her own satisfaction and only decided to sell it later?
Social network-based recommender systems : Nowadays, like magic, there are social network-based recommender systems, proximity location-based application and a handful of other models and features. Seeking a recommendation (for anything) these days is only a click away!
Detracts from the website : What a Java® applet is The URL of a Java® applet you found Why you feel this Java® applet enhances or detracts from the website

Reviews

Write a Review

Financial Accounting Questions & Answers

  Prepare a presentation on moving averages method

Prepare a presentation on moving averages method of price determination

  Sugar beets into end products industrial fiber-refined sugar

Sohr Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs $62 to buy from farmers and $21 to crush in the company's plant. Two intermediate products, beet fiber and beet ..

  Claire ltd owns all the share capital of lauren ltd the

claire ltd owns all the share capital of lauren ltd. the following transactions relate to the period ended 30 june

  Write the footnote for danerys year-end financial statement

Write the footnote for Danerys' year-end financial statements related to goodwill and other intangible assets. Assume Danerys had no intangible assets prior to the acquisition.

  Show the net present value approach

Which alternative would you recommend that the company accept? Show all computations using the net present value approach. Show separate computations for each project.

  What is the roi under each alternative

The company expects to earn 15% before interest and taxes on sales of $3 million. The tax rate is 40%.

  The following information was provided by the treasurer of

the following information was provided by the treasurer of suretthe following information was provided by the treasurer

  Question on 1st january 2009 carlin corporation issued

question on 1st january 2009 carlin corporation issued 2400000 of 5-year 8 percent bonds at 95 the bonds pay interest

  Prepare a condensed cost of goods manufactured schedule

Prepare a condensed cost of goods manufactured schedule for situation (1) for the year ended December 31, 2012

  Discussions this week

Some common sense talking points are moving around in our discussions this week. As always there are very solid themes coming to the forefront. Ben McClure writes for Investigator, and I think some of his ideas here are valuable to this discussion.

  Prepare dated journal entries to record the transactions

Calculate Dahl's 20X6 consolidated net income and identify the amount attributable to Dahl's shareholders and to the non-controlling interest and prepare dated journal entries to record the transactions shown above.

  Identify specific reasons for outsourcing-jobs lost

Identify a real-life outsourcing decision that has been made. Identify the specific reasons for the outsourcing. If information is available, discuss the results of the outsourcing decision (jobs lost, cost savings, etc.). Cite sources as deemed nece..

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