Reference no: EM13867395
On January 1, 2010, the Baznik Company adopted a defined benefit pension plan. At that time, the company awarded retroactive benefits to certain employees. These retroactive benefits resulted in a prior service cost of $1,200,000 on that date (which it did not fund). The company has six participating employees who are expected to receive the retroactive benefits. Following is a schedule that identifies the participating employees and their expected years of future service as of January 1, 2010:
Expected Years of Employee Future Service
A .............. 1
B .............. 3
C .............. 4
D .............. 5
E .............. 5
F .............. 6
The company decided to amortize the prior service cost to pension expense using the years of future service method. The following are the amounts of the components of Baznik Company's pension expense, in addition to the amortization of the prior service cost for 2010 and 2011:
.png)
The company contributed $850,000 and $830,000 to the pension fund at the end of 2010 and 2011, respectively.
Required:
1. Prepare a set of schedules for the Baznik Company to determine
(a) The amortization fraction for each year,
(b) The amortization of the prior service cost.
2. Prepare all the journal entries related to the Baznik Company 's pension plan for 2010 and2011.
|
Cash flow calculations using a spreadsheet
: Cash flow calculations using a spreadsheet
|
|
Goose down is used in a wide variety of products
: Goose down is used in a wide variety of products, including jackets, bedding, and pillows.) In recent years, the cost of down has been increasing. For example, in October 2010, Lands' End, a retailer of clothing and bedding items, was paying about $1..
|
|
Assignment on operating budget
: Assignment on Operating Budget
|
|
What mistake you think you would make if you start business
: What mistake do you think you would make if you started your own business? (If you don't think you would make any, then please explain a weakness that you have that you would have to guard against.)
|
|
These retroactive benefits resulted in a prior service cost
: On January 1, 2010, the Baznik Company adopted a defined benefit pension plan. At that time, the company awarded retroactive benefits to certain employees.
|
|
What is the economic quantity for ben to order?
: What is the economic quantity for Ben to order?
|
|
Prepare journal entries for each of the transactions
: Prepare journal entries for each of the transactions through August 1. Prepare any adjusting entries required on December 31. Show how all of the liabilities arising from these items are reported on the balance sheet at December 31. Complete requirem..
|
|
Nolan industries manufactures control units
: Nolan Industries manufactures control units that are used in high-speedproduction systems such as pulp and paper manufacturing. The companyhas two major products: the XR244 and the XR276. Punit Shah, the salesmanager at Nolan Industries, is preparing..
|
|
Modern industrial wireless modems
: 1. List three basic technologies used in modern Industrial wireless modems 2. List two issues you should be aware of when deciding on whether you should implement a link at 900 MHz or 2.4 GHz.
|