Intermediate Accounting
3rd Edition
ISBN: 9780136912644
Author: Elizabeth A. Gordon; Jana S. Raedy; Alexander J. Sannella
Publisher: Pearson Education (US)
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Chapter 19, Problem 19.12P
a.
To determine
The value of compensation expense and pass the journal of it.
b.
To determine
To prepare: The worksheet that comprises the income statement and the
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Current Attempt in Progress
Headland Importers provides the following pension plan information.
Fair value of pension plan assets, January 1, 2020
$2,463,000
Fair value of pension plan assets, December 31, 2020
2,815,000
Contributions to the plan in 2020
262,000
Benefits paid retirees in 2020
328,000
From the data above, compute the actual return on the plan assets for 2020.
Actual return on plan assets for 2020
%24
Current Attempt in Progress
Blossom Company provides the following information about its defined benefit pension plan for the year 2020.
$ 89,400
Service cost
Contribution to the plan
104,800
Prior service cost amortization
9,700
Actual and expected return on plan assets
64,400
Benefits paid
40,800
Plan assets at January 1, 2020
627,300
Projected benefit obligation at January 1, 2020
697,700
Accumulated OCI (PSC) at January 1, 2020
149,700
Interest/discount (settlement) rate
10 %
Compute the pension expense for the year 2020.
Pension expense for 2020
Determination of Pension Plan Amounts
Various pension plan information of Kerem Company for 2019 and 2020 is as follows:
2019
2020
Service cost
$100,000
(G)
Interest cost on projected benefit obligation
54,000
(g)
Discount rate
9%
9%
Amortization of prior service cost
4,000
4,000
Plan assets (fair value), 1/1*
500,000 615,000
Projected benefit obligation, 1/1**
(a) 720,000
Expected long-term rate of return on plan assets
(b)
11%
Amortization of net loss
(d)
700
Accrued pension cost (liability), 12/31
(f)
(k)
Average service life of employees
10 years 10 years
Pension expense
(e) 110,850
Cumulative net loss, 1/1
68,000
(i)
Expected return on plan assets
50,000
(h)
Corridor
(c) 72,000
*1/1/2021: $762,000
**1/1/2021: $857,800
Chapter 19 Solutions
Intermediate Accounting
Ch. 19 - What is the allocation period used to expense...Ch. 19 - How do companies account for stock-based...Ch. 19 - Do companies with equity-based compensation plans...Ch. 19 - When accounting for employee stock options, will a...Ch. 19 - Prob. 19.5QCh. 19 - Prob. 19.6QCh. 19 - Prob. 19.7QCh. 19 - Prob. 19.8QCh. 19 - Prob. 19.9QCh. 19 - Prob. 19.10Q
Ch. 19 - Prob. 19.1MCCh. 19 - Prob. 19.2MCCh. 19 - Prob. 19.3MCCh. 19 - Prob. 19.4MCCh. 19 - Prob. 19.5MCCh. 19 - Prob. 19.6MCCh. 19 - Prob. 19.7MCCh. 19 - Prob. 19.8MCCh. 19 - Prob. 19.1BECh. 19 - Prob. 19.2BECh. 19 - Prob. 19.3BECh. 19 - Prob. 19.4BECh. 19 - Prob. 19.5BECh. 19 - Prob. 19.6BECh. 19 - Employee Stock Options, Liability-Classified...Ch. 19 - Prob. 19.8BECh. 19 - Prob. 19.9BECh. 19 - Prob. 19.10BECh. 19 - Prob. 19.11BECh. 19 - Prob. 19.12BECh. 19 - Prob. 19.13BECh. 19 - Prob. 19.14BECh. 19 - Prob. 19.15BECh. 19 - Prob. 19.16BECh. 19 - Prob. 19.17BECh. 19 - Prob. 19.18BECh. 19 - Prob. 19.19BECh. 19 - Prob. 19.20BECh. 19 - Prob. 19.21BECh. 19 - Prob. 19.22BECh. 19 - Prob. 19.23BECh. 19 - Prob. 19.24BECh. 19 - Prob. 19.25BECh. 19 - Prob. 19.26BECh. 19 - Prob. 19.27BECh. 19 - Prob. 19.28BECh. 19 - Prob. 19.1ECh. 19 - Prob. 19.2ECh. 19 - Employee Stock Options. Equity-Classified Awards....Ch. 19 - Prob. 19.4ECh. 19 - Prob. 19.5ECh. 19 - Prob. 19.6ECh. 19 - Prob. 19.7ECh. 19 - Prob. 19.8ECh. 19 - Prob. 19.9ECh. 19 - Prob. 19.10ECh. 19 - Prob. 19.11ECh. 19 - Prob. 19.12ECh. 19 - Prob. 19.13ECh. 19 - Prob. 19.14ECh. 19 - Prob. 19.15ECh. 19 - Prob. 19.16ECh. 19 - Prob. 19.1PCh. 19 - Prob. 19.2PCh. 19 - Prob. 19.3PCh. 19 - Prob. 19.4PCh. 19 - Prob. 19.5PCh. 19 - Prob. 19.6PCh. 19 - Prob. 19.7PCh. 19 - Prob. 19.8PCh. 19 - Prob. 19.9PCh. 19 - Prob. 19.10PCh. 19 - Prob. 19.11PCh. 19 - Prob. 19.12PCh. 19 - Prob. 1JCCh. 19 - Prob. 2FSCCh. 19 - Prob. 1SSCCh. 19 - Prob. 2SSCCh. 19 - Basis for Conclusions Case 1: Are Employee Stock...Ch. 19 - Prob. 2BCC
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