Defined benefit pension plan problem

Assignment Help Accounting Basics
Reference no: EM13135834

Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2011. The provisions of the plan were not made retroactive to prior years. A local bank, engaged as trustee for the plan assets, expects plan assets to earn a 10% rate of return. A consulting firm, engaged as actuary, recommends 6% as the appropriate discount rate. The service cost is $150,000 for 2011 and $200,000 for 2012. Year-end funding is $160,000 for 2011 and $170,000 for 2012. No assumptions or estimates were revised during 2011.


Calculate each of the following amounts as of both December 31, 2011, and December 31, 2012:

(1) Projected benefit obligation

(2) Plan assets

(3) Pension expense

Reference no: EM13135834

Previous Q& A

  Calculate the energy (in kj) of a photon

calculate the energy (in kJ) of a photon which has a wavelength of a mircowave with a wavelength of 2.84 cm

  Compute the total price and quantity materials variances

During July, the company purchases and uses 3,800 pounds of materials costing $19,570 in making 1,530 units of finished product. Compute the total, price, and quantity materials variances.

  How many grams of sulfur (s) are needed

How many grams of sulfur (S) are needed to react completely with 326 g of mercury (Hg) to form HgS?

  What entry would be made for the initial pledge by the local

By the fiscal year-end of June 30, 2009, the local government had raised only $5,000 from other donors. What entry would be made for the initial pledge by the local government during the year ended June 30, 2009?

  Calculate the theoretical yield of c2h5cl

Calculate the theoretical yield of C2H5Cl when 106 g of C2H6 reacts with 236 g of Cl2 assuming that C2H6 and Cl2 react only to form C2H5Cl and HCl

  Total compensation cost pertaining

1. Determine the total compensation cost pertaining to the restricted shares. 2. Prepare the appropriate journal entry to record the award on January 1, 2009.

  Company realizes a contribution margin

It would save $6,300 per year over the present method of delivering pizzas. In addition, it would result in the sale of 2,300 more pizzas each year. The company realizes a contribution margin of $1 per pizza.

  What is the molecular formula

what is the molecular formula and empirical formula of NH2Cl, molar mass = 51.5 g/mol

  How has graphical display of data changed in last year

What is the probability of selling your home for the median price in your city (My zip code is 91730 Alta Loma). How has the graphical display of data changed in the last 10 years? How will it change in the next 10 years?

  How much if any accumulated earnings tax will the irs assess

It is now 3 months after the end of the current taxable year. How much, if any, accumulated earnings tax will the IRS assess against Arekay Corporation?


Write a Review


Similar Q& A

  Analysis of mathematics of tucker drillin

Tucker Drillin Corp. plans to borrow $200,000. Northern National Bank will lend the money at one-half percentage point over the prime rate of 8.5% (9 percent total) and requires a compensating balance of 20 percent.

  Determine the inventories direct material costs

JD Enterprises applies factry overhead based on dirct labor costs. The company incurred the following costs during 2003: dirct materials costs, $650000; direct labor costs, $3,000,000; and factory overhead costs applied, $1,800,000.

  What was the actual price per pound of the iron

For 2009, PMD Inc. had set the following standards for production of metal tables: 35 pounds of iron at a standard cost of $2.60 per pound. During June the company produced 300 tables. The company bought 10, 625 pounds of iron at a cost of $25,500..

  Long-formal accounting reports

What are some examples of long formal reports? When might an accounting department or accounting firm use these reports?

  How much liability for outstanding premiums

how much liability for outstanding premiums should be recorded at the end of 2008?

  What was the correct change in the general fund balance

General government revenues for the year were $800,000 with an overall increase in the city's net assets of $150,000.

  Explain this type of revenue recognition transaction

Explain this type of revenue recognition transaction, and what factors should be considered in determining when to recognize revenue in this transaction?

  Recording transactions affecting the enterprise fund

Recording Transactions Affecting the Enterprise Fund and Business-Type Activities,  Prepare general journal entries to record the December 31, 2013, accounts and balances for the Water Utility Fund, selecting the corresponding accounts from drop-down..

  Journalist compromising national security

You're a journalist for an up-and-coming online news website. You are inadvertently given some information that you know would increase your website's popularity, but could potentially compromise national security.

  Cost structure of perfectly competitive firm

In the perfectly competitive industry, the market price is $25. A firm is currently producing 10,000 units of output, its average total cost is $28, its marginal cost is $20, and its average variable cost is $20.

  Absorption costing net operating income last year

Fixed manufacturing overhead costs released from inventory under absorption costing amounted to $32,900. What was the absorption costing net operating income last year?

  Kinnion medical clinic has budgeted the cash flows

Kinnion Medical Clinic has budgeted the following cash flows, Kinnion Medical had a cash balance of $8,000 on January 1. The company desires to maintain a cash cushion of $5,000. Funds are assumed to be borrowed, in increments of $1,000,

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd