Reference no: EM13867364
On January 1, 2010, the Cromwell Company adopted a defined benefit plan for its employees. All the employees are the same age, retire at the same time, and have the same life expectancy after retirement. The following are the relevant facts concerning the pension plan factors and the employee characteristics:
Pension Plan Factors______________________________
Benefit formula Average of last four years ' salary
Number of years of service x 0.025
Expected average of last four years ' salary $80,000 per employee
Annual pension benefit earned each year of service by each employee $80,000 _ 0.025 _ $2,000
Date of computation of pension expense and pension funding December 31
Amount funded each year Equal to annual service cost
Discount rate 10%
Expected long term (and actual) rate of return on plan assets 9%
Paid at end of each year
Plus one seventh of prior service cost in 2013 and 2014
Employee Characteristics__________________________
Number of employees 60
Age of employees 35Years
to retirement (at end of 2010) 25Years
life expectancy after date of retirement 14
For the years 2010 through 2014, the company experienced no net gain or loss in regard to the pension plan. On January 1, 2013, however, the company agreed to an amendment of the pension plan. This amendment changed the factor in the pension benefit formula from 0.025 to 0.03. This amendment was made retroactive to the adoption of the plan.
Required:
1. Prepare a schedule to compute the Cromwell Company 's pension expense for 2010 through 2014. Round to the nearest dollar.
2. Prepare all the journal entries related to Cromwell Company 's pension plan for 2010 through 2014.
3. What is Cromwell Company 's total accrued/prepaid pension cost at the end of 2014? Is it an asset or liability?
|
How might a company''s strategies to prevent occupational
: How might a company's strategies to prevent occupational accidents differ from a program to prevent occupational disease? In what ways might the programs be similar?
|
|
A friend in san diego has suggested a possible need
: As a recent CSUS graduate, you are hoping to share your business writing skills with others (and make a few extra dollars, too). You have set up a communication consulting business and designed a two-day workshop for business professionals who would..
|
|
Differences between microeconomics and macroeconomics?
: differences between microeconomics and macroeconomics?
|
|
Discuss the effects of nafta on u.s.a
: Discuss the effects of NAFTA
|
|
The pension plan factors and the employee characteristics
: On January 1, 2010, the Cromwell Company adopted a defined benefit plan for its employees. All the employees are the same age, retire at the same time, and have the same life expectancy after retirement. The following are the relevant facts concernin..
|
|
Self-evaluation and brief explanation
: It should outline what you learned, what you did, and how you changed as a person. ADDITIONALLY - Attach an extra page with a self-evaluation and brief explanation (a few sentences will be sufficient) of why you believe your self-given grade to be..
|
|
Use thinking to bring about positive change
: As a healthcare leader, you will need to work effectively with the thinking in your organization, and that can be challenging. To get staff members to think in the right ways for your organization to be successful, well, it takes work and finesse!
|
|
Find a single force vector
: Find a single force vector (called the resultant), which would have the same effect as the given vectors
|
|
Histogram for gaussian normal random variable
: 1. A histogram for Gaussian "Normal" random variable X_1 with zero-mean and unit variance. Calculate its mean and variance. 2. Repeat 1 for a uniformly distributed random variable X_2 on the interval [-1,1]
|