Ridley Corporation is a manufacturing company in the Caribbean. The company sponsors a defined benefit pension plan for its employees. The following balances relate to the plan on January 1, 2020. (amounts in thousands).
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Ridley Corporation is a manufacturing company in the Caribbean. The company
sponsors a defined benefit pension plan for its employees. The following balances relate
to the plan on January 1, 2020. (amounts in thousands).
Defined benefit obligation $340,000
Plan assets (market-related value) $270,000
Pension asset/liability $ 70,000 Cr
OCI—Loss $ 39,000
On December 31, 2020, the actuary provided the following additional data as a result of
the operation of the plan during the year.
Actual return on plan assets $27,000
Service cost $45,000
Benefits paid retirees $41,000
Contributions $65,000
Discount (interest) rate 7%
(a) Prepare a 2020 pension worksheet with supplementary schedules.
(b) Determine the amounts of the components of pension expense that should be recognized
by the company in 2020.
(c) Prepare the
the pension plan in 2020.
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- Ridley Corporation is a manufacturing company in the Caribbean. The companysponsors a defined benefit pension plan for its employees. The following balances relate to the plan on January 1, 2020. (amounts in thousands).Defined benefit obligation $340,000Plan assets (market-related value) $270,000Pension asset/liability $ 70,000 CrOCI—Loss $ 39,000On December 31, 2020, the actuary provided the following additional data as a result of the operation of the plan during the year. Actual return on plan assets $27,000Service cost $45,000Benefits paid retirees $41,000Contributions $65,000Discount (interest) rate 7%Instructions.(a) Prepare a 2020 pension worksheet with supplementary schedules. (b) Determine the amounts of the components of pension expense that should be recognized by the company in 2020. (c) Indicate the pension-related amounts that would be reported on the income statement and the statement of financial position for Ridley Corporation for the year 2020.Ridley Corporation is a manufacturing company in the Caribbean. The companysponsors a defined benefit pension plan for its employees. The following balances relate to the plan on January 1, 2020. (amounts in thousands).Defined benefit obligation $340,000Plan assets (market-related value) $270,000Pension asset/liability $ 70,000 CrOCI—Loss $ 39,000On December 31, 2020, the actuary provided the following additional data as a result of the operation of the plan during the year. Actual return on plan assets $27,000Service cost $45,000Benefits paid retirees $41,000Contributions $65,000Discount (interest) rate 7%Instructions.(a) Prepare a 2020 pension worksheet with supplementary schedules. (b) Determine the amounts of the components of pension expense that should be recognized by the company in 2020. (c) Prepare the journal entry to record pension expense and the employer’s contribution to the pension plan in 2020.Ridley Corporation is a manufacturing company in the Caribbean. The companysponsors a defined benefit pension plan for its employees. The following balances relate to the plan on January 1, 2020. (amounts in thousands).Defined benefit obligation $340,000Plan assets (market-related value) $270,000Pension asset/liability $ 70,000 CrOCI—Loss $ 39,000On December 31, 2020, the actuary provided the following additional data as a result of the operation of the plan during the year. Actual return on plan assets $27,000Service cost $45,000Benefits paid retirees $41,000Contributions $65,000Discount (interest) rate 7%Instructions.(a) Prepare a 2020 pension worksheet with supplementary schedules. (b) Determine the amounts of the components of pension expense that should be recognized by the company in 2020. (c) Prepare the journal entry to record pension expense and the employer’s contribution to the pension plan in 2020. (d) Indicate the pension-related amounts that would be reported on the…
- Ridley Corporation is a manufacturing company in the Caribbean. The companysponsors a defined benefit pension plan for its employees. The following balances relateto the plan on January 1, 2020. (amounts in thousands). Defined benefit obligationPlan assets (market-related value)Pension asset/liabilityOCI—Loss $340,000$270,000$ 70,000 Cr$ 39,000 On December 31, 2020, the actuary provided the following additional data as a result ofthe operation of the plan during the year. Actual return on plan assetsService costBenefits paid retireesContributionsDiscount (interest) rate $27,000$45,000$41,000$65,0007% 1. Prepare the journal entry to record pension expense and the employer’s contribution tothe pension plan in 2020 2. Indicate the pension-related amounts that would be reported on the income statement andthe statement of financial position for Ridley Corporation for the year 2020Shamrock Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances related to this plan. Plan assets (market-related value) $565,000 Projected benefit obligation 656,000 Pension asset/liability 91,000 Cr. Prior service cost 86,000 Net gain or loss (debit) 92,000 As a result of the operation of the plan during 2020, the actuary provided the following additional data for 2020. Service cost $98,000 Settlement rate, 9%; expected return rate, 10% Actual return on plan assets 50,000 Amortization of prior service cost 26,000 Contributions 126,000 Benefits paid retirees 92,000 Average remaining service life of active employees 10 years Using the preceding data, compute pension expense for Shamrock Corp. for the year 2020 by preparing a pension worksheet that shows the journal entry for pension expense. (Enter all amounts as positive.)Shamrock Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances related to this plan. Plan assets (market-related value) $565,000 Projected benefit obligation 656,000 Pension asset/liability 91,000 Cr. Prior service cost 86,000 Net gain or loss (debit) 92,000 As a result of the operation of the plan during 2020, the actuary provided the following additional data for 2020. Service cost $98,000 Settlement rate, 9%; expected return rate, 10% Actual return on plan assets 50,000 Amortization of prior service cost 26,000 Contributions 126,000 Benefits paid retirees 92,000 Average remaining service life of active employees 10 years Using the preceding data, compute pension expense for Shamrock Corp. for the year 2020 by preparing a pension worksheet that shows the journal entry for pension expense. (Enter all amounts as positive.) Use the market-related…
- Ling Ltd operates a defined benefit pension scheme for all of its employees. The closing balances on the scheme assets and liabilities, at 31 December 2020, were $100 million and $104 million respectively. Ling's actuary has provided the following information that has yet to be accounted for in the year-ended 31 December 2020. Required: Show the effects of the above on the financial statements for the year.The Pension Expense in a pension plan for the year were recorded at $856,800. In addition, an amount of $161,400 had been debited to the Other Comprehensive Income account to record all actuarial losses for the year. In addition, the company had contributed a cash amount of $350,000 to the Plan Assets. What would have been the amount recorded as Pension expenses for 2019 if the company were reporting under ASPE? Select one: a. $856,800. b. $757,200. c. $161,400. d. $350,000. e. None of the above.Howard Corp. sponsors a defined-benefit pension plan for its employees. On January 1, 2020, the following balances related to this plan. Plan assets (fair value) $2,200,000 Projected benefit obligation 2,400,000 Pension asset/liability 200,000 Cr. Prior service cost 300,000 OCI – Loss 260,000 As a result of the operation of the plan during 2020, the actuary provided the following additional data at December 31, 2020. Service cost for 2020 $280,000 Actual return on plan assets in 2020 180,000 Amortization of prior service cost 60,000 Contributions in 2020 460,000 Benefits paid retirees in 2020 320,000 Settlement rate 7% Expected return rate 8% Average remaining service life of active…
- Blossom Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances related to this plan. Plan assets (market-related value) $480,000 Projected benefit obligation 650,000 Pension asset/liability 170,000 Cr. Prior service cost 80,000 Net gain or loss (debit) 85,000 As a result of the operation of the plan during 2020, the actuary provided the following additional data for 2020. Service cost $99,000 Settlement rate, 9%; expected return rate, 10% Actual return on plan assets 42,000 Amortization of prior service cost 25,000 Contributions 124,000 Benefits paid retirees 82,000 Average remaining service life of active employees 10 years Using the preceding data, compute pension expense for Blossom Corp. for the year 2020 by preparing a pension worksheet that shows the journal entry for pension expense. (Enter all amounts as positive.) PLEASE FIX THE INCORRECT…Blossom Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances related to this plan. Plan assets (market-related value) $480,000 Projected benefit obligation 650,000 Pension asset/liability 170,000 Cr. Prior service cost 80,000 Net gain or loss (debit) 85,000 As a result of the operation of the plan during 2020, the actuary provided the following additional data for 2020. Service cost $99,000 Settlement rate, 9%; expected return rate, 10% Actual return on plan assets 42,000 Amortization of prior service cost 25,000 Contributions 124,000 Benefits paid retirees 82,000 Average remaining service life of active employees 10 years Using the preceding data, compute pension expense for Blossom Corp. for the year 2020 by preparing a pension worksheet that shows the journal entry for pension expense PICTURE BELOW FOR REFERENCE:Pronghorn Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan. Plan assets $497,900 Projected benefit obligation 571,700 Pension asset/liability 73,800 Accumulated OCI (PSC) 101,400 Dr. As a result of the operation of the plan during 2020, the following additional data are provided by the actuary. Service cost $87,700 Settlement rate, 9% Actual return on plan assets 53,100 Amortization of prior service cost 18,300 Expected return on plan assets 50,200 Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions 74,400 Contributions 97,200 Benefits paid retirees 84,500 Prepare the journal entry for pension expense for 2020