Calculate pension expense for 2013, Financial Accounting

Assignment Help:

Ortiz Motors sponsors a defined-benefit pension plan for its employees. On January 1, 2013, the company's records showed the following account balances relevant to this plan:
Plan Assets (market-related value) $450,000
Projected Benefit Obligation $600,000
Prior Service Cost - AOCI $ 75,000
Net Loss - AOCI $ 65,000

As a result of the operation of the plan during 2013, the actuary provided the following additional data:

Service cost for 2013 $ 75,000
Actual return on plan assets in 2013 $ 45,000
Amortization of prior service cost in 2013 $ 20,000
Contributions to the pension fund in 2013 $115,000
Benefits paid to retirees in 2013 $ 70,000
Actuary's discount rate 7%
Expected rate of return 8%
Average remaining service life of active employees 10 years

1. Calculate pension expense for 2013
2. What is the amount of PBO at the end of 2013?
3. What is the amount of Plan Assets at the end of 2013?
4. Prepare the journal entry for pension expense for 2013.


Related Discussions:- Calculate pension expense for 2013

ACCOUTING, Ask questio. You have been appointed the accountant of a new org...

Ask questio. You have been appointed the accountant of a new organisation that is preparing its first set of financial statements. In determining the depreciation for the first yea

Utility of Management accounting, Enumerate the scope and utility of manage...

Enumerate the scope and utility of management accounting.

The rules of intestacy-executorship law, The rules of intestacy Agricul...

The rules of intestacy Agricultural land, crops and livestock in certain areas of Kenya are not covered by these rules; they are distributed according to the law or custom of t

Major qualitative characteristics of accounting information, Four major qua...

Four major qualitative characteristics of accounting information There are four major qualitative characteristics which influence usefulness of accounting information. Additio

Explain the term reporting interval - management accounting, Explain the te...

Explain the term Reporting interval - Management accounting For most businesses, financial accounting reports are produced on an annual basis, though some large businesses prod

Advancement-truts laws and accounts, ADVANCEMENT Trustees may apply not...

ADVANCEMENT Trustees may apply not more than half of the presumptive or vested share of the capital held in trust for any person (infant or adult) for  his advancement or ben

How do you react to the investment banker?, You are the CFO of Diversi?ed I...

You are the CFO of Diversi?ed Industries. Diversi?ed has suffered through 4 or 5 tough years. This has deteriorated its ? financial condition to the point that Diversi?ed is in dan

Disclaimer-liquidation of companies, Disclaimer The liquidator may disc...

Disclaimer The liquidator may disclaim onerous property consisting of: 1.    Land burdened with onerous covenants; 2.    Stocks and shares; 3.    Unprofitable contracts, or 4.

Project, Looking for someone who can help me with my investment project

Looking for someone who can help me with my investment project

Write Your Message!

Captcha
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