User Account

All Pages

Determining pension worksheet-journal entries

Assignment Help Accounting Basics
Reference no: EM1356172

The accountant for ABC co. has developed the following information for the company's defined -pension plan for 2008:

Beginning PBO $3,750,000
Beginning FMV of assets $2,750,000
Pension Liability $1,000,000
AOCI - unrecognized PSC $625,000
Service cost $500,000
Actual return on plant assets $260,000
Annual contribution to the plan $900,000
Amortization of prior services cost $105,000
Benefits paid to retirees $60,000
Settlement rate 10%
Expected rate of return on plan assets 8%
The Accumulated benefit obligation at December31, 2008 amounted to $4,250,000.

Instructions:

a) Using the above information for ABC co., prepare a pension work sheet for 2008. Indicate (credit) entries by parentheses. Calculated amounts should be supported.

b) Prepare the journal entries to reflect the accounting for the company's pension plan for the year ending December 31, 2008

Reference no: EM1356172

Questions Cloud

Steps in accounting cycle and items on balance sheet : What are the steps of the accounting cycle? Why is it necessary to make adjusting entries at the end of each accounting period? What would happen if all of the steps of the accounting cycle were not completed in a specific accounting period?
Global expansion through franchising for market penetration : The CEO is looking for another country in which to enter with his restaurant. He has to work within certain limitations, etc. One my suggestions will be to establish more franchises within the countries where restaurants were recently opened.
Describe information using table : Describe the information seen, using the terms such as table, schema and key. Describe the EMPLOYEE and EMP_PHOTO tables in detail.
Major categories of tests : List the major categories of tests, giving one example for each category. When giving your example, list the users of the test and a use for the test.
Determining pension worksheet-journal entries : Using the above information for ABC co., prepare a pension work sheet for 2008. Indicate (credit) entries by parentheses. Calculated amounts should be supported. Prepare the journal entries to reflect the accounting for the company's pension plan f..
Global risk factors : Explain what factors are most prevalent in today's market and how can one modify investment strategies to account for such risks?
Describe the equilibrium price and sales : Describe the equilibrium price and sales of X. Let PY = $10. Determine whether X and Y are substitutes or complements.
How medical conditions might mimic psychological disorders : Can someone help me with an example of how medical conditions might mimic psychological disorders?
Using a single global advertising outlet : Show the reasons an MNE might prefer to work with a single global advertising agency instead of a series of local or regional agencies.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Determining valuing preferred stock

Best Rate Bank just issued some new preferred stock. The issue will pay a $10 annual dividend in perpetuity, beginning 10 years from now. If the market needs a 7% return on this investment

  Determining loss with break-even point

Tarrah Company's variable expenses are 72% of sales. The company's break-even point in sales is $2,450,000. If sales are $60,000 below the break-even point, the company would report a:

  Annual cash outflow for operating costs

Jim Bingham is considering starting a small catering business. He would need to purchase a delivery van and several equipment costing $125,000 to equip the business and another $60,000 for inventories

  Requirements of incorporating the business

Discuss in detail the requirements of incorporating the business, the advantages and disadvantages, and provide JJ with recommendations.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Equity method of accounting to fair value method

Compare the equity technique of accounting to the fair value technique for equity securities. In what cases would you employ each?

  Amount of outstanding checks

Fitzgerald Company wrote checks totalling $17,080 during October and $18,650 during November. What was the amount of outstanding checks on November 30?

  Four elements of budgeting cycle

Discuss the four elements of the budgeting cycle. What are the human aspects of budgeting? Do you have a budget for personal expenses? Does it work?

  Prepare a schedule of cash collections

Prepare a schedule of cash collections for January, February, and March and for the quarter in total, Prepare a production budget for January, February, and March and for the quarter in total.

  Investment journal entries

Hobson acquires 40% of the outstanding voting stock of Stokes Company on January 1, 2008,for $210,000 in cash. The book value of Stokes' net assets on the date was $400,000, although one company's buildings, with a $60,000 carrying value, was actu..

  Financing sources city enterprise fund

A city's Enterprise Fund issued revenue bonds with a face value of $10,000,000-the Enterprise Fund will report total other financing sources in the amount of

  Preventative controls

Discuss the nature of preventive controls that may be designed into an AIS. Give an example and explain how it may prevent fraud or abuse of the system.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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