Question
Problem 17-12 Determine pension expense; journal entries; two years [LO17-3, 17-4, 17-5, 17-6, 17-7, 17-8] The Kollar Company has a defined benefit pension plan. Pension
Problem 17-12 Determine pension expense; journal entries; two years [LO17-3, 17-4, 17-5, 17-6, 17-7, 17-8]
| The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal years 2013 and 2014 are presented below ($ in millions): |
| Information Provided by Pension Plan Actuary: |
| a. | Projected benefit obligation as of December 31, 2012 = $3,050. |
| b. | Prior service cost from plan amendment on January 2, 2013 = $550 (straight-line amortization for 10-year average remaining service period). |
| c. | Service cost for 2013 = $630. |
| d. | Service cost for 2014 = $680. |
| e. | Discount rate used by actuary on projected benefit obligation for 2013 and 2014 = 10%. |
| f. | Payments to retirees in 2013 = $490. |
| g. | Payments to retirees in 2014 = $560. |
| h. | No changes in actuarial assumptions or estimates. |
| i. | Net gain |
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Contemporary Auditing real issues and cases
Authors: Michael C. Knapp
9th edition
978-1133839552, 113383955X, 1133187897, 978-1133710424, 1133710425, 978-1133187899
