Question

On January 1, 2021, Ivanhoe Co. had the following balances: Projected benefit obligation $7,440,000 Fair value...

On January 1, 2021, Ivanhoe Co. had the following balances:

Projected benefit obligation $7,440,000
Fair value of plan assets 7,440,000


Other data related to the pension plan for 2021:

Service cost 319,000
Contributions to the plan 463,000
Benefits paid 454,000
Actual return on plan assets 472,000
Settlement rate 9%
Expected rate of return 6%

Questions

a)Determine the projected benefit obligation at December 31, 2021. There are no net gains or losses.

b)Determine the fair value of plan assets at December 31, 2021.

c)Calculate pension expense for 2021.

d)Prepare the journal entry to record pension expense and the contributions for 2021.

Account Titles and Explanation

Debit

Credit
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Hit the LIKE Button.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
On January 1, 2021, McGee Co. had the following balances: Projected benefit obligation $7,800,000 Fair value...
On January 1, 2021, McGee Co. had the following balances: Projected benefit obligation $7,800,000 Fair value of plan assets 7,800,000 Other data related to the pension plan for 2021: Service cost 315,000 Contributions to the plan 459,000 Benefits paid 450,000 Actual return on plan assets 468,000 Settlement rate 9% Expected rate of return 6% (a) Determine the projected benefit obligation at December 31, 2021. There are no net gains or losses. On January 1, 2021, McGee Co. had the following...
On January 1, 2021, Parks Co. has the following balances: Projected benefit obligation $5,600,000 Fair value...
On January 1, 2021, Parks Co. has the following balances: Projected benefit obligation $5,600,000 Fair value of plan assets 5,000,000 The settlement rate is 10%. Other data related to the pension plan for 2021 are: Service cost $320,000 Amortization of prior service costs 72,000 Contributions 360,000 Benefits paid 335,000 Actual return on plan assets 352,000 Amortization of net gain 24,000 Calculate the fair value of plan assets at December 31, 2021.
On January 1, 2015, Parks Co. has the following balances: Projected benefit obligation                            &
On January 1, 2015, Parks Co. has the following balances: Projected benefit obligation                                          $4,200,000 Fair value of plan assets                                                   3,480,000 The settlement rate is 10%. Other data related to the pension plan for 2015 are: Service cost                                                                       $226,000 Amortization of prior service costs                                       54,000 Contributions                                                                      270,000 Benefits paid                                                                       250,000 Actual return on plan assets                                               264,000 Amortization of net gain                                                       18,000 The balance of the projected benefit obligation at December 31, 2015 is a.   $4,494,000. b.   $4,596,000. c.   $4,860,000. d.   $4,610,000....
On January 1, 2021, Ravetch Corporation’s projected benefit obligation was $35 million. During 2021, pension benefits...
On January 1, 2021, Ravetch Corporation’s projected benefit obligation was $35 million. During 2021, pension benefits paid by the trustee were $6 million. Service cost for 2021 is $11 million. Pension plan assets (at fair value) increased during 2021 by $9 million as expected. At the end of 2021, there were no pension-related other comprehensive income (OCI) accounts. The actuary’s discount rate was 11%. Required: Determine the amount of the projected benefit obligation at December 31, 2021. (Enter your answers...
          1. The projected benefit obligation is the measure of pension obligation that a. can no...
          1. The projected benefit obligation is the measure of pension obligation that a. can no longer be used under GAAP as an estimate for reporting the service cost component of pension expense. b. is not an allowable estimate for reporting the service cost component of pension expense for defined benefit plans. c. is one of several allowable estimates for reporting the service cost component of pension expense. d. is the only allowable estimate for reporting the service cost component...
(17&18) on January 1, 2017 beaumont has the following balance Projected benefit obligation $2,100,000 Fair Value...
(17&18) on January 1, 2017 beaumont has the following balance Projected benefit obligation $2,100,000 Fair Value of plan asset $1,800,000 the settlement rate is 10% other date related to the pension plan for 2017 are Service cost $180,000 Amortization of prior service cost due to increase in benefits $60,000 Contributions $300,000 Benefits paid $105,000 Actual return on plan assets $237,000 Amortization of net gain $18,000 1. The balance of the projected benefit obligation at December 31, 2017 is 2. The...
At January 1, 2017, Hennein Company had plan assets of $280,000 and a projected benefit obligation...
At January 1, 2017, Hennein Company had plan assets of $280,000 and a projected benefit obligation of the same amount. During 2017, service cost was $27,500, the settlement rate was 10%, actual and expected return on plan assets were $25,000, contributions were $20,000, and benefits paid were $17,500. Prepare a pension worksheet for Hennein Company for 2017. HENNEIN COMPANY General Journal Entries Memo Record Items Pension Expense Cash Pension Asset/Liability Projected Benefit Obligation Plan Assets 1/1/17 $ $ $ $...
Okner Inc. sponsors a defined benefit plan. The company provide the following information: - On December...
Okner Inc. sponsors a defined benefit plan. The company provide the following information: - On December 31, 2020, plan assets were $270,000 - The projected benefit obligation on December 31, 2020 was $270,000 - During 2021, service cost was $30,000, and the settlement rate was 10% (use beginning PBO) - Benefits paid in 2021 were $21,000 and contributions were $18,000 Required: a. Calculate Okner's pension expense for 2021. b. What are the balances of the projected benefit obligation and the...
Coronado Company sponsors a defined benefit pension plan. The following information related to the pension plan...
Coronado Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2020 and 2021. 2020 2021 Plan assets (fair value), December 31 $733,950 $891,450 Projected benefit obligation, January 1 735,000 840,000 Pension asset/liability, January 1 147,000 Cr. ? Prior service cost, January 1 262,500 252,000 Service cost 63,000 94,500 Actual and expected return on plan assets 25,200 31,500 Amortization of prior service cost 10,500 12,600 Contributions (funding) 120,750 126,000 Accumulated benefit obligation,...
Pension data for Barry Financial Services Inc. include the following: ($ in thousands) Discount rate, 7%...
Pension data for Barry Financial Services Inc. include the following: ($ in thousands) Discount rate, 7% Expected return on plan assets, 12% Actual return on plan assets, 11% Service cost, 2021 $ 360 January 1, 2021: Projected benefit obligation 2,550 Accumulated benefit obligation 2,250 Plan assets (fair value) 2,650 Prior service cost—AOCI (2021 amortization, $50) 350 Net gain—AOCI (2021 amortization, $8) 380 There were no changes in actuarial assumptions. December 31, 2021: Cash contributions to pension fund, December 31, 2021...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT