A government makes a contribution to its pension plan in the amount of $10,000 for year 1. The actuarially-determined annual required contribution for year 1 was $12,500. The pension plan paid benefits of $8,200 and refunded employee contributions of $800 for year 1. What is the pension expense for the Government-Wide Statements for year 1? $8,200 $10,000 $12,500 None of above

A government makes a contribution to its pension plan in the amount of $10,000 for year 1. The actuarially-determined annual required contribution for year 1 was $12,500. The pension plan paid benefits of $8,200 and refunded employee contributions of $800 for year 1. What is the pension expense for the Government-Wide Statements for year 1? $8,200 $10,000 $12,500 None of above

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The following information is related to the defined benefit pension plan of Havana for the year: Service cost Contributions to pension plan Benefits paid to retirees Plan assets (fair value), January 1 Plan assets (fair value), December 31 Actual return on plan assets PBO, January 1 PBO, December 31 Discount rate Long-term expected return on plan assets $ 65,000 117,000 156,000 643,000 760,000 156,000 915,000 915,500 3:09 10% 9% Assuming no other relevant data exist, what is the pension expense for the year? Multiple Choice $96,630. $156,500. 2 of 16 Next > < Prev Mc Graw Hill MacBook Air
You gathered the following information related to Ashley Company’s the defined benefit plan for the current year ended December 31: Fair value of plan assets: P2,100 million at January 1, and P2,300 million at December 31 Present value of obligation to provide benefits: P2,200 million at January 1, and P2,600 million at December 31 Contributions paid to the fund: P80 million Benefits paid to retired employees: P50 million The defined benefit cost for the year is A P250 million B P280 million C P200 million D P120 million
The Marino Company has provided you the following information pertaining to its defined benefit pension plan that was adopted on January 1, 20X1: • The service cost was $950,000 during 20X1 and $1,045,000 during 20X2. • The prior service cost amortization each year was $290,000. • The contribution to the pension plan was $1,500,000 on December 31, 20X1 and $1,800,000 on December 31, 20X2. • The actuarially determined discount rate and the expected return on plan assets was 10%. • The actual return on plan assets was 9.5%. • Retirement benefits pertaining to years of service prior to 20X1 were granted to the employees. The prior service cost is being amortized over the remaining ten-year life of the employees. What is the balance of the projected benefit obligation as of December 31, 20X2?
The Marino Company has provided you the following information pertaining to its defined benefit pension plan that was adopted on January 1, 20X1: The service cost was $950,000 during 20X1 and $1,045,000 during 20X2. The prior service cost amortization each year was $290,000. The contribution to the pension plan was $1,500,000 on December 31, 20X1 and $1,800,000 on December 31, 20X2. The actuarially determined discount rate and the expected return on plan assets was 10%. The actual return on plan assets was 9.5%. Retirement benefits pertaining to years of service prior to 20X1 were granted to the employees. The prior service cost is being amortized over the remaining ten-year life of the employees. What is the pension expense for the year ended December 31, 20X2? Multiple Choice $1,335,000 $1,280,000 $1,185,000 $1,599,000
You gathered the following information related to Ashley Company's the defined benefit plan for the current year ended December 31: • Fair value of plan assets: P2,100 million at January 1, and P2,300 million at December 31 • Present value of obligation to provide benefits: P2,200 million at January 1, and P2,600 million at December 31 • Contributions paid to the fund: P80 million • Benefits paid to retired employees: P50 million The defined benefit cost for the year is O P200 million O P120 million P280 million O P250 million
The Carrasco Company has provided you the following information pertaining to its defined benefit pension plan that was adopted on January 1, 20X1: The service cost was $750,000 during 20X1 and $1,125,000 during 20X2. The contribution to the pension plan was $600,000 on December 31, 20X1 and $1,200,000 on December 31, 20X2. The actuarially determined discount rate and the expected return on plan assets are both 10%. The actual return on plan assets was 10.5%. Retirement benefits pertaining to years of service prior to 20X1 were not granted to the employees. What is the pension expense for the year ended December 31, 20X2? Multiple Choice $1,140,000 $1,065,000 $1,200,000 $1,137,000
Rosaria Co. sponsors a defined benefit pension plan. For the current year ended December 31, thefollowing information relevant to the plan has been accumulated:Defined benefit obligation, 1/1 P11,250,000Fair value of plan assets, 1/1 10,500,000Current service cost 1,050,000Past service cost 2,200,000Actual return on plan assets 600,000Decrease in defined benefit obligation due tochanges in actuarial assumptions300,000Discount rate 8%Requirements:1. In the working papers computations, what balance of plan assets will be determined?2. In the working papers computations, what balance of benefit obligation will be determined?3. Calculate the amount that the entity would recognize in profit or loss for the year in accordancewith the revised PAS 19.4. Calculate the amount that the entity would recognize in other comprehensive income for theyear in accordance with the revised PAS 19.
The following information relates to the defined benefit pension plan for the Citywide Company for the year ending December 31, 2018: Present value of benefit obligation, January 1 P6,900,000 Present value of benefit obligation, December 31 7,793,500 Fair value of plan assets, January 1 7,552,500 Fair value of plan assets, December 31 8,347,500 Employer contribution 637,500 Benefits paid to retirees 585,000 Settlement rate 10% Ceiling -- January 1 300,000 How much would be the net pension cost for the year 2018?
6. On January 1, a pension fund has a balance of $X. A contribution of $200,000 is paid into the fund on a date prior to June 30. Immediately before the contribution, the balance in the fund is $1,375,000. The balance on June 30 is $1,732,500. On July 1, benefit payments of $125,000 are paid from the fund. The balance on December 31 is $1,607,500. The time weighted and dollar weighted yield rates on the fund are both equal to 21%. Determine the month in which the contribution was made.
E5 (Pension Entries) Assume that the actuarially required pension plan contribution for a county for its general government employees is $8,000,000. Compute the pension expenditures to be reported in each of the following situations: The county contributed $5,000,000 to the pension plan. Its unfunded pension liability increased by $3,000,000 (all classified as unmatured). The county contributed $4,500,000 to the pension plan. Its unfunded pension liability increased by $3,500,000 (all classified as unmatured). The county contributed $4,200,000 to the pension plan. The matured portion of its unfunded pension liability increased $150,000. The county contributed $9,000,000 to the pension plan. The matured portion of its unfunded pension liability decreased $200,000.
At the start of the year,Boy had the following balances in its pension benefit memo records: Fair value of plan assets, 3,200,000 Accrued benefit obligations, 3,200,000 During the year,the following data related to pension plan are available: current service cost, 140,000 Contribution to the plan, 204,000 Benefits paid to retirees, 200,000 Actual return on plan assets, 185,000 Discount rate, 9% The amount of retirement benefit expense to be recognized in other comprehensive income? a. 143,000 b. 236,000 c. 243,000 d. 436,000
2. Big City provides a defined benefit pension plan for employees of the city water department,an enterprise fund. Assume that the service cost component is $420,000, and interest on thepension liability is $380,000 for the year. Actual returns on plan assets for the year were$300,000 while the projected level of earnings on plan investments was $360,000. Thisdifference is to be amortized over a 5 year period, beginning this year. Finally assume theCity is amortizing a deferred inflow resulting from a change in plan assumptions from a prioryear in the amount of $10,000 per year. Required: Prepare journal entries to record annual pension expense for the enterprise fund.