Gordon Company sponsors a defined benefit pension plan. The following information related to the pension plan is
Question:
Gordon Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2022 and 2023 no benefits were paid in either year.
Instructions
a. Compute pension expense for 2022 and 2023.
b. Prepare the journal entries to record the pension expense and the company’s funding of the pension plan for both years.
2022 2023 Plan assets (fair value), December 31 $699,000 $849,000 Defined benefit obligation, January 1 700,000 800,000 Pension asset/liability, January 1 140,000 Cr. ? Service cost 60,000 90,000 Actual return on plan assets 24,000 30,000 Contributions (funding) 115,000 120,000 Accumulated benefit obligation, December 31 Discount (interest) rate 500,000 550,000 %6 %6
Step by Step Answer:
a Computation of Pension Expense 2022 Service Cost 24000 Interest Cost 849000 x 9 76410 Expe...View the full answer
Intermediate Accounting IFRS
ISBN: 9781119607519
4th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, 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 Business questions
-
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...
-
(Pension Expense, Journal Entries, Statement Presentation) Henning Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the...
-
Griseta Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2010 in which no benefits were paid. 1. The actuarial...
-
Refer to the adjusted trial balance for Romney's Marketing Company in M4-8. Prepare the closing entry at the end of the current year. M4-8 Romney's Marketing Company has the following adjusted trial...
-
The toll charged for driving on a certain stretch of a toll road is $5 except during rush hours (between 7 AM and 10 AM and between 4 PM and 7 PM) when the toll is $7. (a) Sketch a graph of as a...
-
On July 16, 1996, Wyatt Corp. purchased 40 acres of land for $350,000. The land has been held for a future plant site until the current date, December 31, 2014. On December 18, 2014, TexoPete Inc....
-
Can a company create value and have a negative TSR over one year? And over 10 years?
-
The income statement of Rawl Company for the year ended December 31, 2010, shows the following: Net sales $ 360,000 Cost of sales .. 190,000 Gross profit 170,000 Selling, general, and administrative...
-
1/2 3/4 5/6 7/8 Lines I and m are parallel lines cut by the transversal line t. Which THREE angles are congruent to 25? A 41 B 24 C 22 D 26 m
-
Kokomochi is considering the launch of an advertising campaign for its latest dessert product, the Mini Mochi Munch. Kokomochi plans to spend $5 million on TV, radio, and print advertising this year...
-
Duesbury Corporation amended its pension plan on January 1, 2022, and granted $120,000 of past service costs to its employees. The employees have an average time to vesting of 4 years. Current...
-
The following facts apply to the pension plan of Boudreau plc for the year 2022. Plan assets, January 1, 2022 ......................................... 490,000 Defined benefit obligation, January 1,...
-
Regarding the tax treatment of a businesss research and experimental (R&E) expenditures, which of the following statements is true? a. A common reason for electing tax deferral for such expenses is...
-
The importance of cause and effect diagrams in achieving an organizations operations and quality objectives and improving its competitiveness
-
explain the importance of the joint function of protection and the relationship of movement and maneuver to a Sergeant Major in the army when conducting unified land operations?
-
For 25 marks "Advise the Mayor on the importance of personnel development to improve procurement".
-
Explain the importance of goals, list four different types, explain how to write SMART goals, and create your own personal goals.
-
The importance of 'purpose' in today's business world cannot be overstated. Organizational definitions of "purpose" and how they relate to challenges like DEI are under scrutiny. A firm's core and...
-
On January 2, 2019, Parton Company issues a 5-year, $10,000,000 note at LIBOR, with interest paid annually. The variable rate is reset at the end of each year. The LIBOR rate for the first year is...
-
r = 0.18 Find the coefficients of determination and non-determination and explain the meaning of each.
-
Lawrence Incorporated owes $100,000 to Ontario Bank Inc. on a two-year, 10% note due on December 31, 2014. The note was issued at par. Because Lawrence is in financial trouble, Ontario Bank agrees to...
-
On January 1, 2014, Steinem Corporation established a special purpose entity to buy $1 million of accounts receivable from Steinem. Investors have invested in the special purpose entity to benefit...
-
At December 31, 2014, Hyasaki Corporation has the following account balances: Bonds Payable-Due January 1, 2022 (face value, $2,000,000) .................... $1,912,000 Bond Interest Payable...
-
YoY growth rate of 17 percent Plant currently operating at capacity Growth will require a new machine costing $3 million Assume additional $300,000 of annual depreciation for this new machine...
-
Ross chooses not to allocate assets costing between $300 and $1,000 into a low-value pool. Instead, he prefers that you depreciate any depreciable assets purchasedin accordance with their effective...
-
Accounting I11) WE THE BEST Inc. has net sales revenue of $1,360,000, cost of goods sold of$761,100, and all other expenses of $301,000. The beginning balance of stockholders'equity is $411,000 and...
Study smarter with the SolutionInn App