39. A corporation has a defined-benefit plan. A pension liability will result at the end of the year if the
Q: tions. Refer to the chart of accounts for the exact wording of the account titles. journals do not u...
A: Journal entries are recording of the transaction in the accounting journal in a chronological order....
Q: On January 1, 2019, Dhaka Company issued $1,000,000 of 6% bonds due on January 1, 2025. Interest on ...
A: The bonds are issued at premium when market rate is lower than the coupon rate of bonds payable.
Q: Current Account Value Exports of goods 107,941 Exports of services 44,133 Primary income receipts 36...
A: Financial Account: Financial accounts are components of a country's balance of payments that represe...
Q: PLI, Inc. has a Debt to Equity Ratio of 3:1. After tax cost of debt is 5% while cost of equity is 10...
A: SPLI, Inc. has a Debt to Equity Ratio of 3:1, that is its has 75% of debt and 25 % equity and the af...
Q: The AA Tours Partnership earned P500,000 this year. The partners have equal capital balances, and s...
A: sharing of profit of of partnership firm among partners are done on the basis of their profit sharin...
Q: ABC Corporation wishes to raise money by selling a 90-day promissory note in the short-term money ma...
A: Solution Given Maturity period of note 90 days Amount payable at maturity $17000000 ...
Q: Units Beginning inventory Started during the month Total units to account for Completed and transfer...
A: The equivalent units are calculated on the basis of percentage of the work completed during the peri...
Q: Required: 1 a. Using the straight-line method, compute the average remaining service life. If requi...
A: Payroll refers to the entire list of the employees of a company which includes the name of their emp...
Q: The Sanding Department of Quik Furniture Company has the following production and manufacturing cost...
A: In this question, we have to make a production cost report For making it we need to first make as w...
Q: A commercial bill with a face value of $100,000 and 270 days to maturity is purchased with a yield t...
A: A commercial bill is a written order to pay a certain su...
Q: Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required ...
A: The question is based on the concept of Financial Accounting.
Q: fill out the yellow highlighted cells based on the information provided
A: There are several forms of cost accounting that is being used in business. One of them is Job costin...
Q: QUESTION 1 a) ABC Company Sdn. Bhd. received an invoice of RM35,000 dated 24 May 2020 with trade dis...
A:
Q: Which of the following types of errors will not self-correct in the next year?
A: Answer: There are different types of accounting errors in the financials.
Q: Question 1: Prepare a bank reconciliation as of May 31. Be sure to complete the statement heading. R...
A: Analysis and adjustment of differences between the cash balance shown on a bank statement, and the a...
Q: d in one metropolitan area. Among other things, the payment of all invoices is centralized in one of...
A: 1): In this case, the ethical considerations are that Merlin's Retail Outlet is technically paying i...
Q: In the Statement of Changes in Equity, the result from the Statement of Profit or Loss is always add...
A: The income statement is prepared to find the profit or net loss incurred during the period.
Q: The company established a stock appreciation rights program for the president. The program entitled ...
A: Stock appreciation rights is also written as SAR. This program is linked with stock price. This is p...
Q: be allocated on the basis of dollars of assets employed; human resources costs are to be allocated o...
A: Cost allocation is a process of allocating overhead cost of service department to the operating depa...
Q: Margo receives a gift of real estate with an adjusted basis of $175,000 and a fair market value of $...
A: Given data, Adjusted basis =$175,000 Fair market value =$100,000 Margo has generated zero recogniz...
Q: Lambert's Auto Mart had a beginning inventory of $1,400,800, purchases of $3,001,300, and an ending ...
A: Inventory turnover = Cost of goods sold / Average inventory where, Average inventory = (beginning in...
Q: Prepare the journal entries for the above events for the month of February 2022 in the General Journ...
A: Journal entry is the basic entry and as well the first entry which is recorded journal book of the c...
Q: Hearts Company has various cash generating units. One cash generating unit has the following carryin...
A: As given , we need to determine amount of impairment loss . Value in use as determined by management...
Q: BITCO purchased a vehicle for $30,000 on July 1, 2020. BITCO's fiscal year ends on December 31, 202...
A: The question is based on the concept of Depreciation Accounting.
Q: Following are examples of control deficiencies that may represent significant deficiencies or materi...
A: Whether a deficiency is classified as a significant deficiency or a material weakness is determined ...
Q: Which of the following statements is correct about closing entries?
A: The answer for the multiple choice question and relevant explanation are presented hereunder : At th...
Q: what is the cost of sales?
A: Cost of sales are the cost incurred for producing the goods which is sold. The concept related to ma...
Q: Define the term marginal cost and marginal costing. Explain the features of marginal costing & Menti...
A: SOLUTION MARGINAL COST IS THE COST OF ONE ADDITIONAL UNIT OF OUTPUT. THE CONCEPT IS USED IS TO DETER...
Q: FDN Company received a four-month note receivable in the amount of PHP41,000,000 on September 1. The...
A: Accrued Income : Accrued Incomes are those incomes which have been earned during the accounting peri...
Q: Ly engage in discussi e11 strategy is employed rming groun technique
A: Decision making refers to the procedure of making the choices through assessing, identifying the dec...
Q: ABC Corporation would like to know what its optimal cash balance for its petty cash fund. The daily ...
A: Computation of optimum cash balance Square root of (2A * P/S) Where A = Annual cash disbursement P ...
Q: Average Cost per Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing o...
A: Incremental manufacturing cost is the additional direct cost incurred on producing one additional un...
Q: 4. Calculate the % Increase / Decrease in profits for each Year (versus the prior year) using the fo...
A: "We’ll answer the first question since the exact one wasn’t specified. Please submit a new question ...
Q: Explain why most companies use the straight-line method, despite the benefits of accelerated depreci...
A: Accelerated depreciation is a type of method of depreciation in which an asset's book value deprecia...
Q: Petra Supply Ltd. At December 31, 2009, Petra Supply Ltd. had the following account balances: Accoun...
A: When journal entry recod for uncollectible receivable debit bad debt expenses and credit allowance f...
Q: Peter Corp acquired the net identifiable assets of Simon Corp by issuing its own 5,000 ordinary shar...
A: According to IFRS 3, Acquisition-related costs incurred by the acquiring company to effect the busin...
Q: Calculate the Payback Period (PBP) for Machine B assuming cash flows are received evenly throughout ...
A: Solution Given ARR Payback period NPV @ 6% IRR pa Machine A 25% 2.9 years 1...
Q: X and Y formed a partnership on March 1, 2018 and agreed to share profit 80% and 20%, respectively. ...
A: Partnership is one of the agreement or arrangement between two or more than two persons, in which th...
Q: The Clarke Chemical Company produces a special kind of body oil that is widely used by professional ...
A: In process costing to calculate the cost of semifinish...
Q: Below are some of the account balances of FDN Company. Purchases P 1,256,500 Purchase returns and al...
A: Ans. The cost of goods available for sale refers to the amount of cost of goods that can be sold by ...
Q: Selected accounts from Phipps Corporation’s trial balance are as follows. Phipps Corporation Trial ...
A: Current assets are those that are expected to be received within 12 months from the end of the repor...
Q: On October 1, 2021, FDN Company paid an insurance premium covering the period from October 1, 2021 t...
A: Adjusting entries are prepared at the end of the accounting year to ensure the accrual base accounti...
Q: how much is the Additional Financing Needed for the entire 4 years (total AFN for the 4-year period)...
A: AFN is the Additional financing needs of the organization which is planning to expand its business. ...
Q: The Wizarding Company uses the Process Cost System and the Average Costing Method. Materials and Con...
A:
Q: Adamson Corporation is considering four average-risk projects with the following costs and rates of ...
A: The question is based on the concept of Financial Management.
Q: Gerald paid $1730 to install a lift which was hydraulic in nature and an air filter which costs $88 ...
A: Transactions of an organisation will be recorded initially through journal entries in the books of a...
Q: FDN Company received a four-month note receivable in the amount of P68,000,000 on September 1. The n...
A: Accrued interest income will be calculated in proportion of time for an amount at a specified rate. ...
Q: 41. A pension liability is reported when the pension expense reported for the period is greater t...
A: Solution Concept Funded status Funded status of the pension is calculated as =fair value of the plan...
Q: One reason that an cntity is allowed to change its accounting policy is when It is required by an a...
A: Accounting Policies- Accounting principles are the ethics that are to be followed by an accountant ...
Q: he following table gives Foust Company's earnings per share for the last 10 years. The common stock,...
A: Growth rate = $4.21-$3.90 $3.90×100 = $4.55 - $4.21$4.21×100 = $4.91 - $4.55$4.55×100 =$5.31 -$4.91$...
39.
A corporation has a defined-benefit plan. A pension liability will result at the end of the year if the
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 1. Which of the following statements typifies defined contribution plans? Investment risk is borne by the corporation sponsoring the plan. O Retirement benefit is defined by a pension formula O The plans are more complex than defined benefit plans. O The employer's obligation is satisfied by making the periodic contribution to the plan.Which of the following is not a characteristic of a defined-contribution pension plan? The employer's contribution each period is fixed. If the employer does not make contribution in full, then it reports a pension liability. If the employer contributes more than the required amount, then it reports a pension asset. An appropriate funding pattern must be established to ensure that the promised benefits at employees’ retirement will be met. The benefit of gain or the risk of loss from the assets contributed to the pension fund are borne by the employee.Under a nonqualified pension plan, I. the yearly earnings on the pension plan assets are taxable income to the employee. II. an employer's contribution is taxable income to the employee at the time of the contribution. Oa. Only statement II is correct. Ob. Only statement I is correct. Oc. Both statements are correct. Od. Neither statement is correct.
- pension liability is reported when the projected benefit obligation exceeds the fair value of pension plan assets Ⓒthe accumulated benefit obligation is less than the fair value of pension plan assets. the pension expense reported for the period is greater than the funding amount for the same period accumulated other comprehensive income exceeds the fair value of pension plan assets41. A pension liability is reported when the pension expense reported for the period is greater than the funding amount for the same period. the accumulated benefit obligation is less than the fair value of pension plan assets. accumulated other comprehensive income exceeds the fair value of pension plan assets. the projected benefit obligation exceeds the fair value of pension plan assets.35. In a defined-benefit plan, a formula is used that defines the contribution the employer is to make; no promise is made concerning the ultimate benefits to be paid out to the employees. requires that the benefit of gain or the risk of loss from the assets contributed to the pension plan be borne by the employee. defines the benefits that the employee will receive at the time of retirement. requires that pension expense and the cash funding amount be the same.
- Carson Company sponsors a single-employer defined benefit pension plan. The plan provides that pension benefits are determined by age, years of service, and compensation. Among the components that should be included in the calculation, net pension cost is service cost, the interest cost, and actual return on plan assets. What two accounting problems result from the nature of the defined benefit pension plan? Why do these problems arise?Lamont Corporation has a pension plan in which the corporation makes all contributions and employees receive benefits at retirement based on the balance in their accumulated pension fund. What type of pension plan does Lamont have?Carson Company sponsors a single-employer defined benefit pension plan. The plan provides that pension benefits are determined by age, years of service, and compensation. Among the components that should be included in the calculation net pension cost are service cost, interest cost, and actual return on plan assets. Required: A. What two accounting problems result from the nature of the defined benefit pension plan? Why do those problems arise? B. How should Carson determine service cost component of the net pension cost? C. How should Carson determine the interest cost component of the net pension cost? D. How should Carson determine the actual return on plan assets component of the net pension cost?
- Under a qualified pension plan, I. the yearly earnings on the pension plan assets are taxable income to the employee. II. an employer's contribution is not taxable income to the employee at the time of the contribution. Oa, Only statement I is correct. Ob. Only statement II is correct. Oc. Both statements are correct. Od. Neither statement is correct.The projected benefit obligation is the measure of pension obligation that __is not sanctioned under generally accepted accounting principles for reporting the service cost component of pension expense. __is required to be used for reporting the service cost component of pension expense. __requires pension expense to be determined solely on the basis of the plan formula applied to years of service to date and based on existing salary levels. __requires the longest possible period for funding to maximize the tax deduction.In a defined-benefit plan, a formula is used that Select one: a. requires that the benefit of gain or the risk of loss from the assets contributed to the pension plan be borne by the employee. b. requires that pension expense and the cash funding amount be the same. c. defines the contribution the employer is to make; no promise is made concerning the ultimate benefits to be paid out to the employees. d. defines the benefits that the employee will receive at the time of retirement.