What is the funded status of zaras pension plan as of dec

Assignment Help Accounting Basics

Reference no: EM13589334

Zara Clothing has a defined benefit pension plan for its employees. As of December 31, 2012, the balance in the projected benefit obligation (PBO) was $6,000,000, and the fair value of the plan assets was $4,500,000. On December 31, 2012, the AOCI-Deferred Gain/Loss account had a debit balance of $20,000 and the AOCI-PSC account had a debit balance of $200,000. Other data related to the plan for the year 2013 are: Service Cost $800,000 Amortization of prior service cost $10,000 Contribution to the plan $600,000 Benefits paid $500,000 Actual return on plan assets $90,000 Expected return on plan assets 3% Interest (discount or settlement) rate 4%

a.) Prepare a worksheet for Zaras defined benefit pension plan in 2013.

b.) prepare the journal entry that Zara would make on Dec 31, 2013, to record pension expense.

c.) What is the funded status of Zaras pension plan as of Dec 31, 2013? That is, Is it over-or-under funded and by what amount? d.)If Zara had a defined contribution pension plan instead of a defined benefit plan, what journal entry, if any, would it make to record a cash contribution of $600,000 to the plan?

Reference no: EM13589334

Questions Cloud

Write a short essay between 400 and 500 words responding to : write a short essay between 400 and 500 words responding to the assignment below. you are expected to use the textbook

A description of a land feature anywhere on earth that has : create a 5- to 7-slide microsoft powerpoint presentation with presenter notes. the presentation must include the

The monthly payment on a 1000000 15 yr mortgage at 6 is : the monthly payment on a 1000000 15 yr. mortgage at 6 is 8438.57 per month. how much of that 1000000 on day 1 is deemed

Khamsah mining company purchased a tract of mineral land : khamsah mining company purchased a tract of mineral land for 900000. it is estimated that this tract will yield 120000

What is the funded status of zaras pension plan as of dec : zara clothing has a defined benefit pension plan for its employees. as of december 31 2012 the balance in the projected

Marsha thomason an auditor with dorrit cpas is performing a : marsha thomason an auditor with dorrit cpas is performing a review of mikhail companys inventory account. mikhail did

How much energy can be stored in a capacitor with two : question how much energy can be stored in a capacitor with two parallel plates each with an area of 15.0 cm2 and

What will be the new second row after the row operation : which of the following is the solution to system3x 4y 7x 2y 2answerx 6 y -2 x 5 y -2 x 4 y -12 x 3 y

Three different companies each purchased a machine on : three different companies each purchased a machine on january 1 2008 for 42000. each machine was expected to last five

User Account

All Pages