Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following information is available for the defined benefit pension plan of Wilde Company for the year 2020: Plan Assets, January 1, 2020 3,400,000 Projected

image text in transcribed

The following information is available for the defined benefit pension plan of Wilde Company for the year 2020: Plan Assets, January 1, 2020 3,400,000 Projected Benefit Obligation, January 1, 2020 3,700,000 Remaining balance in AOCI related to Prior Service Cost from a 2018 Plan Amendment, January 1, 2020 400,000 Dr. Balance in AOCI related to Other Gains/Losses, January 1, 2020 120,000 Cr. Service Cost 250,000 Settlement rate 7% Actual return on plan assets 235,000 Expected rate of return on plan assets 11% Contributions 80,000 Benefits paid 205,000 Actuarial Gain on December 30, 2020 500,000 Amortization of Prior Service Cost 50,000 Note: The average remaining service years of its employees is estimated to be 12 years in ALL periods. A1. Prepare the pension-related journal entries for the year 2020. A2. Determine the funded status of the pension as of December 31, 2020. Indicate both the funded status and the amount. A3. Calculate the minimum amount of amortization of unrealized gains/losses that will be required for the following year (2021). The following information is available for the defined benefit pension plan of Wilde Company for the year 2020: Plan Assets, January 1, 2020 3,400,000 Projected Benefit Obligation, January 1, 2020 3,700,000 Remaining balance in AOCI related to Prior Service Cost from a 2018 Plan Amendment, January 1, 2020 400,000 Dr. Balance in AOCI related to Other Gains/Losses, January 1, 2020 120,000 Cr. Service Cost 250,000 Settlement rate 7% Actual return on plan assets 235,000 Expected rate of return on plan assets 11% Contributions 80,000 Benefits paid 205,000 Actuarial Gain on December 30, 2020 500,000 Amortization of Prior Service Cost 50,000 Note: The average remaining service years of its employees is estimated to be 12 years in ALL periods. A1. Prepare the pension-related journal entries for the year 2020. A2. Determine the funded status of the pension as of December 31, 2020. Indicate both the funded status and the amount. A3. Calculate the minimum amount of amortization of unrealized gains/losses that will be required for the following year (2021)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Finance Principles And Practice

Authors: Denzil Watson, Antony Head

5th Edition

0273725343, 978-0273725343

More Books

Students also viewed these Finance questions

Question

What are the three categories of time? (p. 291)

Answered: 1 week ago

Question

plan how to achieve impact in practice from your research;

Answered: 1 week ago