The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal years 2021...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66552e64b5537_46866552e64ac66b.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66552e6501ac1_46866552e64ee7dc.jpg)
Transcribed Image Text:
The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal years 2021 and 2022 are presented below ($ in millions): Information Provided by Pension Plan Actuary a. Projected benefit obligation as of December 31, 2020-$3,050. b. Prior service cost from plan amendment on January 2, 2021-$550 (straight-line amortization for 10-year average remaining service period). c. Service cost for 2021-$630. d. Service cost for 2022 $680. e. Discount rate used by actuary on projected benefit obligation for 2021 and 2022 10%. f. Payments to retirees in 2021-$490. g. Payments to retirees in 2022 $560. h. No changes in actuarial assumptions or estimates. L Net gain-AOCI on January 1, 2021-$365. j. Net gains and losses are amortized for 10 years in 2021 and 2022. Information Provided by Pension Fund Trustee a. Plan asset balance at fair value on January 1, 2021 - $2,200. b. 2021 contributions $650. c. 2022 contributions $700. d. Expected long-term rate of return on plan assets 12% e. 2021 actual return on plan assets $200, 1.2022 actual return on plan assets $250. Required: 1. Calculate pension expense for 2021 and 2022. 2. Prepare the journal entries for 2021 and 2022 to record pension expense. 3. Prepare the journal entries for 2021 and 2022 to record any gains and losses and new prior service cost The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal years 2021 and 2022 are presented below ($ in millions): Information Provided by Pension Plan Actuary a. Projected benefit obligation as of December 31, 2020-$3,050. b. Prior service cost from plan amendment on January 2, 2021-$550 (straight-line amortization for 10-year average remaining service period). c. Service cost for 2021-$630. d. Service cost for 2022 $680. e. Discount rate used by actuary on projected benefit obligation for 2021 and 2022 10%. f. Payments to retirees in 2021-$490. g. Payments to retirees in 2022 $560. h. No changes in actuarial assumptions or estimates. L Net gain-AOCI on January 1, 2021-$365. j. Net gains and losses are amortized for 10 years in 2021 and 2022. Information Provided by Pension Fund Trustee a. Plan asset balance at fair value on January 1, 2021 - $2,200. b. 2021 contributions $650. c. 2022 contributions $700. d. Expected long-term rate of return on plan assets 12% e. 2021 actual return on plan assets $200, 1.2022 actual return on plan assets $250. Required: 1. Calculate pension expense for 2021 and 2022. 2. Prepare the journal entries for 2021 and 2022 to record pension expense. 3. Prepare the journal entries for 2021 and 2022 to record any gains and losses and new prior service cost
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Why is the governance structure of an organization important to the external auditor? What are the implications to the auditor if a company has not made a commitment to good governance practices?
-
Define the concept of depreciation.
-
Analyzing the Effects of Adjusting Entries on the Income Statement and Balance Sheet On December 3 1 , 2004, Alan and Company prepared an income statement and balance sheet and failed to take into...
-
The dean of the School of Natural Science is trying to decide whether to purchase a copy machine to place in the lobby of the building. The machine would add to student convenience, but the dean...
-
Net Presente project has estimated annual net cash flows of $11,250 for nine years and is estimated to cost $30,000. Assume a minimum acceptable rate of return of 12. Use the Present Value of an...
-
Researchers initiated along-term study of the population of American black bears. One aspect of the study was to develop a model that could be used to predict abear's weight(since it is not practical...
-
Identify stress-reduction techniques used in organizations (e.g., wellness programs) Evaluate the impact of personal and work-related stress on performance Explain the relationship between...
-
Company: Viventium Explain which metrics you recommend tracking and why. For example, "these are the 3 to 5 metrics I've chosen; I'm tracking this because it does X, thereby bringing me closer to...
-
The residents of the town of Stewart are well-known coffee drinkers. Dunkin Donuts and Starbucks stores supply the residents with over 100,000 cups of hot coffee per week. Recently, coffee drinkers...
-
Read through the following case study and analyse it by addressing the question that follows. Case study: Adriana Adriana runs a very busy multi-sports coaching company that provides after-school...
-
Assuming that you were invited to one of your best friends' wedding. Therefore, you decided to purchase a special product or service as a gift for this important event. Based on this scenario, you...
-
A transportation company delivers chairs made by a furniture department from their factories to their warehouses according to the following chart. The supply and the demand of chairs are provided in...
-
WHAT DOCUMENTS ARE ASSOCIATED WITH STANDARD COST SYSTEMS, AND WHAT INFORMATION DO THOSE DOCUMENTS PROVIDE?LO.1
-
HOW ARE MATERIAL, LABOR, AND OVERHEAD VARIANCES CALCULATED AND RECORDED?LO.1
-
HOW WILL STANDARD COSTING BE AFFECTED IF A SINGLE CONVERSION ELEMENT IS USED RATHER THAN THE TRADITIONAL LABOR AND OVERHEAD ELEMENTS? LO.1
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App