ACCT 557 Week 3 Homework; Problem 20-1, 20-2
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ACCT 557 Intermediate Accounting III – DeVry
| Intermediate Accounting, 14th Edition by Kieso, Weygandt, and Warfield | ||||||||
| P20-1 | ||||||||
| On January 1, 2012, Harrington Company has the following defined benefit pension plan balances. | ||||||||
| Projected benefits obligation | $5,600,000 | |||||||
| Fair value of plan assets | 6,400,000 | |||||||
| The interest (settlement) rate applicable to the plan is | 9% | On January 1, 2013, the company amends its pension | ||||||
| agreement so that service costs of | $620,000 | are created. Other data related to the pension plan are as follows: | ||||||
| 2012 | 2013 | |||||||
| Service costs | $180,000 | $195,000 | ||||||
| Prior service costs amortization | 0 | 97,000 | ||||||
| Contributions (funding) to the plan | 255,000 | 305,000 | ||||||
| Benefits paid | 225,000 | 300,000 | ||||||
| Actual return on plan assets | 320,000 | 515,000 | ||||||
| Expected rate of return on assets | 5% | 8% | ||||||
| Instructions: | ||||||||
| (a) Prepare a pension worksheet for the pension plan for 2012 and 2013. | ||||||||
| Intermediate Accounting, 14th Edition by Kieso, Weygandt, and Warfield | ||||||||||||||
| P20-2 Allison Co. has the following postretirement benefit plan balances on January 1, 2012. | ||||||||||||||
| Accumulated Postreitrement benefit obligation | $2,535,000 | |||||||||||||
| Fair value of plan assets | 2,535,000 | |||||||||||||
| The interest (settlement) rate applicable to the plan is | 8% | On January 1, 2013, the company amends the plan | ||||||||||||
| so that prior service costs of | $185,000 | were created. Other data related to the pension plan are as follows: | ||||||||||||
| 2012 | 2013 | |||||||||||||
| Service costs | $80,000 | $87,000 | ||||||||||||
| Prior service costs amortization | 0 | 13,000 | ||||||||||||
| Contributions (funding) to the plan | 47,000 | 38,000 | ||||||||||||
| Benefits paid | 41,000 | 43,000 | ||||||||||||
| Actual return on plan assets | 200,000 | 155,000 | ||||||||||||
| Expected rate of return on assets | 9% | 7% | ||||||||||||
| Instructions: | ||||||||||||||
| (a) Prepare a worksheet for the postreitrement plan for 2012 & 2013. | ||||||||||||||
10 years ago
ACCT 557 Week 3 Homework; Problem 20-1, 20-2
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