(Comprehensive 2-Year Worksheet) Lemke Company sponsors a defined-benefit pension plan for its employees. The following data relate...
Question:
(Comprehensive 2-Year Worksheet) Lemke Company sponsors a defined-benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2010 and 2011.
(a) Prepare a pension worksheet presenting both years 2010 and 2011 and accompanying computations and amortization of the loss (2011) using the corridor approach.
(b) Prepare the journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31 of each year.
(c) For 2011, indicate the pension amounts reported in the financialstatements.
Projected benefit obligation, January 1 Plan assets (fair value and market-related value), January 1 Pension asset/liability, January 1 Prior service cost, January 1 Service cost Settlement rate Expected rate of return Actual return on plan assets Amortization of prior service cost Annual contributions Benefits paid retirees Increase in projected benefit obligation due to changes in actuarial assumptions Accumulated benefit obligation at December 31 Average service life of all employees Vested benefit obligation at December 31 2010 $600,000 410,000 190,000 Cr. 160,000 40,000 10% 10% 36,000 70,000 97,000 31,500 87,000 721,800 2011 $ 59,000 10% 10% 61,000 50,000 81,000 54,000 -0- 789,000 20 years 464,000
Step by Step Answer:
a Items Balance Jan 1 2010 Service cost Interest costa Actual return Unexpected lossb Amortization of PSC Contributions Benefits Increase in PBO Journ...View the full answer
Intermediate Accounting
ISBN: 978-0470423684
13th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
Related Video
A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
Students also viewed these Accounting questions
-
Lemke Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2020 and 2021. Instructions a. Prepare a pension...
-
Lemke SA sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2019 and 2020. Instructions a. Prepare a pension worksheet...
-
Glesen Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2010 and 2011. Instructions (a) Prepare a pension...
-
What does a SWOT analysis reveal about the overall attractiveness of lululemon's situation?
-
The following graph shows a market in which a price floor of $3.00 per unit has been imposed. Calculate the values of each of the following. a. The deadweight loss. b. The transfer of producer...
-
Note 25 to High Liner's financial statements shows that inventories increased by $34,828,000 in the year ended December 31, 2011. What impact does this increase have on cash from operations? Explain...
-
Which of the following is least likely to be a major focus when undertaking long-run planning for the information systems audit function? a. Identifying the sequence in which material application...
-
1. How does Mill describe the basic moral standard of utilitarianism? 2. How does he defend himself against those who say that this is a crass pleasure theory? 3. What is the basis for knowing that...
-
Bouvous Corporation had the following information for 2020: Revenue $ 440 comma 000$440,000 Operating expenses 340 comma 000340,000 Total assets 500 comma 000500,000 What is the retur
-
There is a lottery with n coupons and n people take part in it. Each person picks exactly one coupon. Coupons are numbered consecutively from 1 to n, n being the maximum ticket number. The winner of...
-
(Pension Worksheet) Hanson Corp. sponsors a defined-benefit pension plan for its employees. On January 1, 2010, the following balances related to this plan. Plan assets (market-related value)...
-
(Comprehensive 2-Year Worksheet) Hobbs Co. has the following defined-benefit pension plan balances on January 1, 2010. Projected benefit obligation? ? ? ? ? ? ? ? ? ? ? ? ? ??$4,600,000 Fair value of...
-
Swiss Chocolate's U.S. division is experiencing an increase in demand for the month of October due to the upcoming holiday season. The following fact pattern forms the basis for the static budget:...
-
The IS Enterprise Content Management (ECM) team has a challenging Records Management opportunity for a Corporate Information Analyst III. The Corporate Information Analyst III will have the...
-
Your firm represents I. B. Miffed. On January 10, 2022, Miffed lent $10,000 to Jim Nasium, who signed a note promising to repay the note in full on January 10, 2023, along with 10% interest. Nasium...
-
Devlin was the owner of a large residential subdivision with several lots for sale. Parnell became interested in purchasing a lot but could not decide between Lot 40 and Lot 41. The price and fair...
-
Can you elaborate on the concept of catalytic cycles, particularly in the context of organometallic catalysis, and explain how these cycles contribute to the regeneration and sustained activity of...
-
how patient wait time affects patient satisfaction and what are the ramification when the time is too long. Explain.
-
Royal Meat Processing Company buys and processes livestock for sale to supermarkets. In connection with the audit of the company's financial statements, you have prepared the following notes based on...
-
Establish identity. cos( + k) = (-1)k cos , k any integer
-
Air (1 atm and 30C) flows crosswise over a bare copper tube (1-in, BWG 16). The approach velocity of the air is 20 m/s. Water enters the tube at 140C and leaves the tube at an average temperature of...
-
Francis Corporation purchased an asset at a cost of $50,000 on March 1, 2014. The asset has a useful life of 8 years and a salvage value of $4,000. For tax purposes, the MACRS class life is 5 years....
-
Judds Company purchased a new plant asset on April 1, 2014, at a cost of $711,000. It was estimated to have a service life of 20 years and a salvage value of $60,000. Judds accounting period is the...
-
Jon Seceda Furnace Corp. purchased machinery for $315,000 on May 1, 2014. It is estimated that it will have a useful life of 10 years, salvage value of $15,000, production of 240,000 units, and...
-
Question Two (a) A six-month European Call option on a non-dividend paying Stock Index has a strike price of $4900. The index price is $5000, the risk-free rate is 5% per annum, and the value of u...
-
2 Assume these are the stock market and Treasury bill returns for a 5-year period: T-Bill Return Year Stock Market Return (%) (%) 2016 32.80 0.09 2017 12.20 0.09 2018 -2.90 0.09 2019 14.00 0.04 2020...
-
ces - Perpetuity Trust Fund You want to establish a trust fund that will provide $330,000 a year forever for your heirs. If the fund can earn a guaranteed rate of return of 15 percent, how much must...
Study smarter with the SolutionInn App