User Account

All Pages

Prepare the journal entry to reflect the accounting

Assignment Help Accounting Basics
Reference no: EM132467392

Howard Corp. sponsors a defined-benefit pension plan for its employees. On January 1, 2011, the following balances related to this plan.

Plan assets (market-related value)                $500,000

Projected benefit obligation                           600,000

OCI - Prior service cost                                 75,000

OCI - Loss                                                  70,000

As a result of the operation of the plan during 2011, the actuary provided the following additional data at December 31, 2011.

Service cost for 2011                                $ 75,000

Actual return on plan assets in 2011              45,000

Amortization of prior service cost                 20,000

Contributions in 2011                                115,000

Benefits paid retirees in 2011                       70,000

Interest rate                                                   7%

Expected return rate                                       10%

Average remaining service life of active employees 10 years

Instructions

Question (a) Using the above information to complete the pension work sheet for 2011 . Indicate (credit) entries by parentheses.

Question (b) Prepare the journal entry to reflect the accounting for the company's pension plan for the year ending December 31, 2011.

Reference no: EM132467392

Questions Cloud

Resulting cash flows both today and one year : Assume that risk-free bonds earn a return of 3.5% and that an investment today of $1000 in the market index fund will pay off either $1200
Relationships between capital costs and leverage : Assume that Firms U and L are in the same risk class and that both have . Firm U uses no debt financing, and its cost of equity is . Firm L has
What is the duration of a two-year zero-coupon : What is the duration of a two-year zero-coupon bond that is yielding 11.5 percent? Use $1,000 as the face value.
What is the price of car : If you can borrow money at 8%, what is the price of this car? Assume the payment is made at the end of each year.
Prepare the journal entry to reflect the accounting : Determine and Prepare the journal entry to reflect the accounting for the company's pension plan for the year ending December 31, 2011.
Annual payment on loan for gardens : What is the annual payment on this loan for Gardens Plus?
Financial implementations of undertaking a major renovation : What type of budget will identify the financial implementations of undertaking a major renovation of the fitness center in a large commercial property
What is the lowest price your company should offer : The investment team at your company guarantees a return of 8%. What is the lowest price your company should offer?
Value the services of an investment banker : When researching the IPO market do you believe that the companies who go public actually need and value the services of an investment banker in this process?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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