On January 1, 2024, Onyeocha Climbing Academy instituted a defined benefit pension plan for its employees. The annual service cost for each year of 2024 and 2025 was $740,000. The interest rate used to determine the projected benefit obligation is 12%. Both the actual and the expected return on plan assets are 10% for both years. Onyeocha funded the plan in the amount of $540,000 each January 1, beginning on January 1, 2024.
Q: Oregon Company's employees are eligible for retirement with benefits at the end of the year in which…
A: Companies provide the retirement options to the employees and companies make provisions for that in…
Q: Golden Manufacturing Company started operations by acquiring $116,000 cash from the issue of common…
A: Multiple sub parts given, so as per guideline, solving first 3 parts only.Introduction:Balance sheet…
Q: Mrs. Hubbard, a mother of two, has been selected for an audit. Advise her on what to do to prepare…
A: The objective of the question is to provide advice to Mrs. Hubbard on how to prepare for an audit…
Q: Req 1A Req 18 Req 2B Calculate the expected total throughput margin for the restaurant per day, and…
A: In the given question Taylor’s is a popular restaurant that offers customers a large dining room and…
Q: In the year 2023, with the social security wage cap set at $160,200, Alex obtained a $100,000 income…
A: Self-employed tax is a tax that self-employed individuals must pay to fund their social security and…
Q: [The following information applies to the questions displayed below.] Matt and Meg Comer are married…
A: Tax liability refers to the legal obligation of an individual, business, or entity to pay taxes to…
Q: On January 1, 2016, BEAST CORP. started construction of a new office building. To finance…
A: The Borrowing Cost will be capitalized in case of qualifying assets. In other words expenditure in…
Q: Data table Beginning work in process (May 1)ª Started in May 2020 Reference Physical Units (Watches)…
A: Process Costing : Operation costing method employed to determine the value of a product at each…
Q: Hackman Corporation began on September 23rd of the current year. Hackman incurred $40, 000 of…
A: Startup costs are the costs which are incurred during the process of establishing a new business.…
Q: Carlise Corp., which manufactures ceiling fans, currently has two product lines, the Indoor and the…
A: The overhead allocation is a method of allocating indirect costs to the goods produced. It can be…
Q: mais200 by br 9. A taxpayer received the following items of income during the taxable year 2023:…
A: When an individual receives and generates income in the form of money, services or property, it is…
Q: Piedmont Company segments its business into two regions-North and South. The company prepared the…
A: The break-even point is the level of sales at which a company covers all its costs, resulting in…
Q: Dividing partnership net loss Morgan Graff and Serigo Vargas formed a partnership in which the…
A: A partnership firm is a such type of business when two or more partner cames do business to earn…
Q: To achieve this goal, how much does the company have to receive in the liquidation of its equipment?
A: Inventory includes all the items, merchandise, and raw materials that are used by the business…
Q: You are about to borrow $15,000 from a bank at an interest rate of 8% compounded annually You are…
A: It is known as Amortization of loan , it is a process in banking where the loan amount or principal…
Q: D Question 34 The equity portion of the balance sheet for BusFin Inc.is shown below. If the stock…
A: MARKET TO BOOK RATIOMarket to Book Ratio is the Ratio between Market Price per share and Book Value…
Q: Problem: Module 3 Textbook Problem 3 Learning Objective: 3-4 Show how warranty obligations affect…
A: Income statement is a financial statement that records all the income and expenses of the business…
Q: On December 31, 2024, Oriole Corporation's common shares were trading for $42, and the company had…
A: Dividend refers to the income earned on investment made in stock in a company. The dividend can be…
Q: How much was the VAT payable for March 2018?
A: To calculate the VAT payable for March 2018, we first need to determine the amount of VAT that was…
Q: Duela Dent is single and had $194,400 in taxable income. Using the rates from Table 2.3. calculate…
A: Answer:- The income tax liability is determined based on the taxable income and the taxpayer's…
Q: Admitting new partner with bonus Cody Jenkins and Lacey Tanner formed a partnership to provide…
A: Partnership is one of the form of business organisation under which two or more than two persons…
Q: 64. Dissolution of a firm takes place- A. O by the death of any one of the partner B. O by the…
A: Dissolution of a firm occurs when its operations cease, typically due to reasons like bankruptcy,…
Q: Current Attempt in Progress Pharoah Company recorded journal entries for the issuance of common…
A: STATEMENT OF SHAREHOLDERS EQUITYStatement of Shareholders Equity is also Known as Changes in…
Q: prescribed A. 80,000 B. 82,500 go C. 175,000 221.500 The deductible amount of interest is FO
A: Deductible interest expense refers to the interest payments that an individual or business can…
Q: Sunland Co's stockholders' equity at January 1, 2026 is as follows: Common stock, $10 par value;…
A: When a company purchases its own shares from outside market, the shares so purchased are known as…
Q: Problem 07-34 (Static) [LO 7-1, 7-5, 7-9, 7-11) SEP, a calendar year corporation, reported $918,000…
A: For accurate financial reporting, adherence to accounting rules, fair financial statements, tax…
Q: a. Convert the following Annual Salaries Monthly 4,583.33 3,333.33 3,125.00 2,000.00 8,000.00 a. $…
A: A social security program called the Canada Pension Plan (CPP) offers qualifying Canadians savings…
Q: hrd.3
A: Investment is the process of generating income in the near future by investing in an asset which is…
Q: vin December 1, jasIIN ETTISL Viyamizeu EITISL CONSuiliny. Vin December 3, the witer contributed…
A: Income statement is a financial statement that records all the income and expenses of the business…
Q: A local partnership was considering the possibility of liquidation. Capital account balances at that…
A: Liquidation: In the fields of finance and economics, liquidation refers to the process of ending a…
Q: Required information [The following information applies to the questions displayed below.] The trial…
A: Statement of Cash Flow is a financial statement that includes the inflow and outflow of cash during…
Q: Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed…
A: Fixed cost is the cost that remains same irrespective of the level of output. Examples of Fixed…
Q: A select list of transactions for Texas Delivery Service follows: For each transaction, identify…
A: Accrual accounting is an accounting method where revenue or expenses are recorded when a transaction…
Q: Which of the following statements about activity-based costing (ABC) is false? Group of answer…
A: The objective of the question is to identify the false statement about activity-based costing (ABC)…
Q: Required: 1. Prepare schedules showing budgeted merchandise purchases for May and June. 2. Prepare a…
A: Since you have posted multiple questions with multiple sub parts, we will provide the solution only…
Q: Polk Software Inc. has a quick ratio of 2.00x, $30,825 in cash, $17,125 in accounts receivable, some…
A: Lets understand the basics.Inventory turnover ratio shows how many times entity is able to replace…
Q: • It is correct to say that Cold Goose's net inflows and outflows of cash at the end of Years 1 and…
A: In accounting, net inflow and outflow of cash at the end of a period are not necessarily equal at…
Q: Q5. A company uses a process costing system for its sole processing department. There were 4, 000…
A: The equivalent units are calculated on the basis of the percentage of the work completed during the…
Q: Tristar Production Company began operations on September 1, 2024. Listed below are a number of…
A: A general journal is a chronological record of a company's transactions, where each entry includes…
Q: Evergreen Inc. expects to manufacture 4,000 refrigerators during the last quarter of the current…
A: Using activity-based costing, the overhead is applied to the production using different activity…
Q: On January 1, 2024, Nguyen Electronics leased equipment from Nevels Leasing for a four-year period…
A: Accounting for lease refers to the process of reporting the financial transactions associated with…
Q: 24. Net Fixed Assets and Depreciation On the balance sheet, the net fixed assets (NFA) account is…
A: “Since you have asked multiple questions, we will answer the first question for you. If you want any…
Q: On January 1, 2024, Nguyen Electronics leased equipment from Nevels Leasing for a four-year period…
A: Lease is defined as a contractual agreement incorporated between two business entities where one…
Q: Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses as…
A: Contribution means the difference between the selling price and variable cost. Break even point…
Q: The company's adjusted trial balance as follows includes the following accounts balances: Cash,…
A: The closing entries are prepared to close the temporary accounts of the business. The revenue,…
Q: Required information [The following information applies to the questions displayed below.] Annin…
A: In the process costing system, the equivalent number of units are obtained by multiplying the number…
Q: Support Department Cost Allocation-Direct Method Yo-Town Inc. produces yogurt. Information related…
A: The direct method allocates costs to the operating departments directly, with no allocations to the…
Q: Payable journal Entries; Straight - Line Interest Amortization and discount tamortization (staight…
A: The straight line amortization refers to the method of estimating in what manner discount on bonds…
Q: 2 Blue inc. Purchases and assets for $100,000. The asset has a useful life of ten years and no…
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
Q: Two independent companies, Denver and Bristol, each own a warehouse. On January 1, they agree to an…
A: The objective of the question is to prepare the journal entries for Denver and Bristol to record the…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images
- Pinecone Company has plan assets of 500,000 at the beginning of the current year and expects to earn 12% on its plan assets during the year. Pinecones service cost is 230,000, and its interest cost is 55,000. Compute Pine-cones pension expense for the current year.In 2019, Magenta Corporation paid compensation of 45,300 to the participants in a profit sharing plan. During 2019, Magenta Corporation contributed 13,200 to the plan. a. Calculate Magentas deductible amount for 2019. b. Calculate the amount of any contribution carryover from 2019.Superman Inc. maintains a defined benefit pension plan. At the beginning of 2022 the pension plan has assets of $700,000 and a defined benefit obligation of $900,000. The discount rate chosen by the actuary is 9%. Current service costs for 2022 are $60,000 while some past service costs arose due to a plan amendment at the beginning of the year of $20,000. In 2022, the company contributed $75,000 to the plan at the end of the year. The benefits paid out of the plan to pensioners during 2022 amounted to $50,000 and this occurred evenly throughout the year. The plan assets at the end of the year were actually $802,250 Complete a worksheet that will calculate the movement in all company and pension plan related accounts. Record the journal entry needed to account for the pension expense in 2022 assuming Superman uses ASPE and then redo the entry assuming IFRS is used. Identify the pension plan's funded status and the asset or liability reported on the Balance Sheet at December 31, 2022.
- On January 1, 2021, Gillock Climbing Academy instituted a defined benefit pension plan for its employees. The annual service cost for each year of 2021 and 2022 was $790,000. The interest rate used to determine the projected benefit obligation is 12%. Both the actual and the expected return on plan assets are 10% for both years. Gillock funded the plan in the amount of $590,000 each January 1, beginning on January 1, 2021. What pension liability should Gillock report in its balance sheet for the year ended December 31, 2022? Multiple Choice $501,500 $311.900 $370.900 $406,700Urban Life Ltd. sponsors a defined benefit pension plan for its employees. It is now the 20X9 fiscal year. An appropriate interest rate for long-term debt is 6%. Information with respect to the plan is as follows: Fair value of plan assets, 31 December 2018 $ 5,478,000 Defined benefit obligation, 31 December 2018 6,659,000 Actual return on plan assets for 2019 62,700 Past service cost from amendment dated 31 December 2019, liability is reduced because benefits were reduced (219,200 ) Actuarial revaluation dated 31 December 20]9; liability is reduced because of changed mortality assumptions (619,700 ) Funding payment at year-end 2019 530,000 Benefits paid to retirees during 2019 121,000 Current service cost for 2019 258,400 Required: 1. Calculate the SFP net defined benefit pension liability as of 31 December 2018. 2. Calculate the net defined benefit pension liability as of 31 December 2019 by calculating the defined benefit obligation and the fair value of plan assets at 31 December…Pharoah Company sponsors a defined benefit plan for its 100 employees. On January 1, 2025, the company's actuary provided the following information. The average remaining service period for the participating employees is 10 years. All employees are expected to receive benefits under the plan. On December 31, 2025, the actuary calculated that the present value of future benefits earned for employee services rendered in the current year amounted to $50, 800; the projected benefit obligation was $492, 700; fair value of pension assets was $277, 400; the accumulated benefit obligation amounted to $372, 300. The expected return on plan assets and the discount rate on the projected benefit obligation were both 10%. The actual return on plan assets is $10,000. The company's current year's contribution to the pension plan amounted to $65,000. No benefits were paid during the year.
- Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2024. 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. The actual return was also 10% in 2024 and 2025. A consulting firm, engaged as actuary, recommends 5% as the appropriate discount rate. The service cost is $160,000 for 2024 and $210,000 for 2025. Year-end funding is $170,000 for 2024 and $180,000 for 2025. No assumptions or estimates were revised during 2024. *We assume the estimated return was based on the actual return on similar investments at the inception of the plan and that, since the estimate didn't change, that also was the actual rate in 2025. Required: Calculate each of the following amounts as of both December 31, 2024, and December 31, 2025: Note: Enter your answers in thousands (i.e., 200,000 should be entered as 200). Enter a liability as a negative amount. 1…Lewis Industries adopted a defined benefit pension plan on January 1, 2021. By making the provisions of the plan retroactive to prior years, Lewis incurred a prior service cost of $2 million. The prior service cost was funded immediately by a $2 million cash payment to the fund trustee on January 2, 2021. However, the cost is to be amortized (expensed) over 10 years. The service cost—$250,000 for 2021—is fully funded at the end of each year. Both the actuary’s discount rate and the expected rate of return on plan assets were 9%. The actual rate of return on plan assets was 11%. At December 31, the trustee paid $16,000 to an employee who retired during 2021.Required:Determine each of the following amounts as of December 31, 2021, the fiscal year-end for Lewis:1. Projected benefit obligation.2. Plan assets.3. Pension expense.Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2024. 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. The actual return was also 10% In 2024 and 2025.* A consulting firm, engaged as actuary, recommends 6% as the appropriate discount rate. The service cost is $200,000 for 2024 and $300,000 for 2025. Year-end funding is $210,000 for 2024 and $220,000 for 2025. No assumptions or estimates were revised during 2024. "We assume the estimated return was based on the actual return on similar Investments at the Inception of the plan and that, since the estimate didn't change, that also was the actual rate in 2025. Required: Calculate each of the following amounts as of both December 31, 2024, and December 31, 2025: Note: Enter your answers in thousands (l.e., 200,000 should be entered as 200). Enter a llability as a negative amount. December…
- Bonita Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan. Plan assets $469,800 Projected benefit obligation 607,000 Pension asset/liability 137,200 Accumulated OCI (PSC) 97,100 Dr. As a result of the operation of the plan during 2020, the following additional data are provided by the actuary. Service cost $91,100 Settlement rate, 8% Actual return on plan assets 54,400 Amortization of prior service cost 19,100 Expected return on plan assets 51,600 Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions 79,700 Contributions 99,500 Benefits paid retirees 85,800 Using the data above, compute pension expense for Bonita Corp. for the year 2020 by preparing a pension worksheet. (Enter all amounts as positive.) BONITA CORP.Pension Worksheet General Journal Entries Memo…Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2024. 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. The actual return was also 10% in 2024 and 2025.* A consulting firm, engaged as actuary, recommends 4% as the appropriate discount rate. The service cost is $150,000 for 2024 and $280,000 for 2025. Year-end funding is $160,000 for 2024 and $170,000 for 2025. No assumptions or estimates were revised during 2024. *We assume the estimated return was based on the actual return on similar investments at the inception of the plan and that, since the estimate didn't change, that also was the actual rate in 2025. Required: Calculate each of the following amounts as of both December 31, 2024, and December 31, 2025: Note: Enter your answers in thousands (i.e., 200,000 should be entered as 200). Enter a liability as a negative amount. X Answer…Sandhill Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan. Plan assets $458,800 Projected benefit obligation 574,100 Pension asset/liability 115,300 Accumulated OCI (PSC) 103,900 Dr. As a result of the operation of the plan during 2020, the following additional data are provided by the actuary. Service cost $94,400 Settlement rate, 8% Actual return on plan assets 54,600 Amortization of prior service cost 19,100 Expected return on plan assets 51,500 Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions 75,700 Contributions 101,100 Benefits paid retirees 86,700 (a) Using the data above, compute pension expense for Sandhill Corp. for the year 2020 by preparing a pension worksheet. (Enter all amounts as positive.) SANDHILL CORP.Pension Worksheet General Journal…