1 On December 31, 2005, Brisbane Company had 100,000 shares of common stock outstanding and 30,000 shares of 7 , $50 par, cumulative preferred stock outstanding On February 28, 2006, Brisbane purchased 24,000 shares of common stock on the open market as treasury stock paying $40 per share Brisbane sold 6,000 treasury shares on September 30, 2006, for $45 per share Net income for 2006 was $180,905 Also outstanding during the year were stock options giving key personnel the option to buy 50,000 common shares at $40 During 2006, the average market price of the common shares was $50 with a closing price of $51 on December 31, 2006 Required Compute Brisbane's basic and diluted earnings per share for 2006 2 Burrito Corporation has a defined benefit pension plan Burrito received the following information for the current calendar year Projected benefit obligation Balance, January 1 $150,000,000 Service cost 25,000,000 Internet cost 15,000,000 Benefit paid (12,000,000) Balance, December 31 $178,000,000 Plan assets Balance, January 1 $90,000,000 Actual return on plan assets 11,000,000 Contribution 23,000,000 Benefit paid (12,000,000) Balance, December 31 $112,000,000 The expected long term return on plan assets is 10 There were no other relevant data for the year Required 1) Determine Burrito's pension expense for the year 2) Prepare the journal entries to record the pension expense and funding for the year 1 On December 31, 2005, Brisbane Company had 100,000 shares of common stock outstanding and 30,000 shares of 7 , $50 par, cumulative preferred stock outstanding On February 28, 2006, Brisbane purchased 24,000 shares of common stock on the open market as treasury stock paying $40 per share Brisbane sold 6,000 treasury shares on September 30, 2006, for $45 per share Net income for 2006 was $180,905 Also outstanding during the year were stock options giving key personnel the option to buy 50,000 common shares at $40 During 2006, the average market price of the common shares was $50 with a closing price of $51 on December 31, 2006 Required Compute Brisbane's basic and diluted earnings per share for 2006 2 Burrito Corporation has a defined benefit pension plan Burrito received the following information for the current calendar year Projected benefit obligation Balance, January 1 Service cost Internet cost Benefit paid Balance, December 31 Plan assets Balance, January 1 Actual return on plan assets Contribution Benefit paid Balance, December 31 $150,000,000 25,000,000 15,000,000 (12,000,000) $178,000,000 $90,000,000 11,000,000 23,000,000 (12,000,000) $112,000,000 The expected long term return on plan assets is 10 There were no other relevant data for the year Required 1) Determine Burrito's pension expense for the year 2) Prepare the journal entries to record the pension expense and funding for the year

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 26, 2024

1. On December 31, 2005, Brisbane Company had 100,000 shares of common stock outstanding and 30,000 shares of 7%, $50 par, cumulative preferred stock outstanding.

1. On December 31, 2005, Brisbane Company had 100,000 shares of common stock outstanding and 30,000 shares of 7%, $50 par, cumulative preferred stock outstanding. On February 28, 2006, Brisbane purchased 24,000 shares of common stock on the open market as treasury stock paying $40 per share. Brisbane sold 6,000 treasury shares on September 30, 2006, for $45 per share. Net income for 2006 was $180,905. Also outstanding during the year were stock options giving key personnel the option to buy 50,000 common shares at $40. During 2006, the average market price of the common shares was $50 with a closing price of $51 on December 31, 2006. Required: Compute Brisbane's basic and diluted earnings per share for 2006. 2. Burrito Corporation has a defined benefit pension plan. Burrito received the following information for the current calendar year: Projected benefit obligation Balance, January 1 $150,000,000 Service cost 25,000,000 Internet cost 15,000,000 Benefit paid (12,000,000) Balance, December 31 $178,000,000 Plan assets Balance, January 1 $90,000,000 Actual return on plan assets 11,000,000 Contribution 23,000,000 Benefit paid (12,000,000) Balance, December 31 $112,000,000 The expected long-term return on plan assets is 10%. There were no other relevant data for the year. Required: 1) Determine Burrito's pension expense for the year. 2) Prepare the journal entries to record the pension expense and funding for the year. image text in transcribed

1. On December 31, 2005, Brisbane Company had 100,000 shares of common stock outstanding and 30,000 shares of 7%, $50 par, cumulative preferred stock outstanding. On February 28, 2006, Brisbane purchased 24,000 shares of common stock on the open market as treasury stock paying $40 per share. Brisbane sold 6,000 treasury shares on September 30, 2006, for $45 per share. Net income for 2006 was $180,905. Also outstanding during the year were stock options giving key personnel the option to buy 50,000 common shares at $40. During 2006, the average market price of the common shares was $50 with a closing price of $51 on December 31, 2006. Required: Compute Brisbane's basic and diluted earnings per share for 2006. 2. Burrito Corporation has a defined benefit pension plan. Burrito received the following information for the current calendar year: Projected benefit obligation Balance, January 1 Service cost Internet cost Benefit paid Balance, December 31 Plan assets Balance, January 1 Actual return on plan assets Contribution Benefit paid Balance, December 31 $150,000,000 25,000,000 15,000,000 (12,000,000) $178,000,000 $90,000,000 11,000,000 23,000,000 (12,000,000) $112,000,000 The expected long-term return on plan assets is 10%. There were no other relevant data for the year. Required: 1) Determine Burrito's pension expense for the year. 2) Prepare the journal entries to record the pension expense and funding for the year