Employee Benefit Expense 1,650,000
Employee Benefit Expense 1,650,000
Problem 18-1
2. Remeasurement
Actual return on plan asset 650,000
Interest income on PBO 500,000
REMEASUREMENT GAIN ON PLAN ASSETS 150,000
3. Journal Entry
Employee benefit expense 1,650,000
Cash 1,200,000
Accrued benefit cost 150,000
Remeasurement gain OCI 300,000
5. Memorandum
FVPA-January 1 5,000,000
Contribution to the plan 1,200,000
Actual return on plan assets 650,000
FVPA- DECEMBER 31 6,850,000
PBO-January 6,000,000
Current service cost 1,550,000
Interest expense on PBO 600,000
PBO-December 31 8,150,000
2. Remeasurement
Actual return on plan asset 700,000
Interest income on PBO 575,000
REMEASUREMENT GAIN ON PLAN ASSETS 125,000
3. Journal Entry
Employee benefit expense 675,000
Accrued benefit cost 375,000
Cash 900,000
Remeasurement gain - OCI 125,000
5. Memorandum
FVPA-January 1 5,750,000
Contribution to the plan 900,000
Actual return on plan assets 700,000
Benefits paid (100,000)
FVPA- DECEMBER 31 7,250,000
PBO-January 1 6,500,000
Current service cost 600,000
Interest expense on PBO 650,000
Benefits paid ( 100,000)
PBO-December 31 7,650,000
2. Remeasurement
Actual return on plan asset 500,000
Interest income on PBO 670,000
REMEASUREMENT LOSS ON PLAN ASSETS (170,000)
3. Journal Entry
Employee benefit expense 1,840,000
Remeasurement loss- OCI 170,000
Cash 1,500,000
Accrued benefit cost 510,000
5. Memorandum
FVPA-January 1 6,700,000
Contribution to the plan 1,500,000
Interest income on FVPA 670,000
Remeasurement loss on plan asset ( 170,000)
Benefits paid ( 800,000)
FVPA- DECEMBER 31 7,900,000
PBO-January 1 7,600,000
Current service cost 1,450,000
Past service cost 300,000
Interest expense on PBO 760,000
Benefits paid ( 800,000)
PBO-December 31 9,310,000
Problem 18-4
1. Retained earnings 300,000
Accrued benefit cost 300,000
.
3.Employee benefit expense 1,020,000
Cash 500,000
Remeasurement gain -OCI 220,000
Accrued benefit cost 300,000
5. FVPA-January 1 6,000,000
Contribution to the plan 500,000
Actual return on plan asset 700,000
Benefits paid ( 300,000)
FVPA- DECEMBER 31 7,050,000
PBO-January 1 7,500,000
Current service cost 900,000
Interest expense on PBO 600,000
Benefits paid ( 150,000)
PBO-December 31 8,850,000
5. FVPA-January 1 6,500,000
Contribution to the plan 1,200,000
Actual return on plan asset 800,000
Benefits paid (1,500,000)
FVPA- DECEMBER 31 7,000,000
PBO-January 1 7,500,000
Current service cost 1,200,000
Interest expense on PBO 750,000
Decrease in PBO ( 200,00)
Benefits paid (1,500,000)
PBO-December 31 7,750,000
.
2. Current service cost 925,000
Interest expense (6% x 5,500,000) 330,000
Interest income (6% x 4,750,000) (285,000)
EMPLOYEE BENEFIT EXPENSE 970,000
6. FVPA-January 1 4,750,000
Contribution plan 1,350,000
Actual return on plan asset 485,000
Benefits paid ( 995,000)
FVPA- December 31 5,590,000
PBO-January 1 5,500,000
Current service cost 925,000
Interest expense 330,000
Increase in PBO 150,000
Benefits paid ( 995,000)
PBO-DECEMBER 31 5,910,000
FVPA – December 31 5,590,000
PBO – December 31 5,910,000
ACCRUED BENEFIT COST ( 320,000)
Problem 18-7
1. Present value of defined benefit obligation settled 1,000,000
Lump sum payment 800,000
Settlement gain 200,000
5. FVPA-January 1 6,000,000
Contribution to the plan 700,000
Actual return on plan assets 800,000
Lump sum payment ( 800,000)
FVPA - December 31 6,700,000
PBO-January 1 8,000,000
Current service cost 900,000
Interest expense 960,000
Present value of defined benefit obligation settled (1,000,000)
PBO- December 31 8,860,000
2. PBO-January 1 5,000,000
Current service cost 700,000
Past service cost 200,000
Interest expense on PBO (10% x 5,000,000) 500,000
Decrease in PBO - actuarial gain ( 500,000)
PBO-December 31 5,900,000
3. FVPA-December 31 7,900,000
PBO-December 31 5,900,000
Prepaid benefit cost-surplus 2,000,000
Asset ceiling - December 31, 2020 1,200,000
EFFECT OF ASSET CEILING 800,000
PBO-December 31 3,500,000
Total 2,800,000
Current service cost 700,000
PBO-December 31 2,160,000
Total 1,485,000
Current service cost 675,000
Total 4,300,000
PBO-December 31 4,700,000
Current service cost 400,000
Total 4,150,000
FVPA – December 31 3,900,000
ACTUAL RETURN ON PLAN ASSET 370,000
Problem 18-19
1. ANSWER C. 1,350,000
Current service cost 1,400,000
Interest expense on PBO (10% x 7,500,000) 750,000
Interest income on FVPA (10% x 7,000,000) ( 700,000)
Gain on plan settlement ( 100,000)
EMPLOYEE BENEFIT EXPENSE 1,350,000
2. ANSWER C. 340,000
Actual return on plan asset 840,000
Interest income on FVPA 700,000
Remeasurement gain on plan assets 140,000
Decrease in PBO-actuarial gain 200,000
TOTAL REMEASUREMENT GAIN 340,000
3. ANSWER A. 7,140,000
FVPA-January 1 7,000,000
Contribution to the plan 1,200,000
Actual return on plan assets 840,000
Benefits paid (1,500,000)
Settlement price of defined benefit obligation ( 400,000)
FVPA -December 31 7,140,000
4. Answer B. 7,450,000
PBO-January 1 7,500,000
Current service cost 1,400,000
Interest expense on PBO 750,000
Benefits paid (1,500,000)
Decrease in PBO ( 200,000)
Present value of benefit obligation settled ( 500,000)
PBO- December 31 7,450,000
Problem 18-20
1. Answer A
Current service cost 1,200,000
Interest cost (9% x 10,000,000) 900,000
Interest income (9% x 9,200,000) ( 828,000)
PENSION EXPENSE 1,272,000
2. Answer A
FVPA-January 1 2,100,000
Contribution to the fund 21,000
Benefits paid ( 31,000)
Total 2,089,000
FVPA-December 31 2,400,000
Total 2,090,000
ACTUAL RETURN 310,000
3. Answer D
PBO-January 1 2,200,000
Current service cost 30,000
Past service cost during the year 115,000
Interest expense 110,000
Benefits paid ( 31,000)
Total 2,424,000
PBO -December 31 2,500,000
Increase in PBO- actuarial loss 76,000
4. Answer C
Actual return on plan assets 310,000
Interest income 105,000
Remeasurement gain on plan assets 205,000
Actuarial loss on PBO ( 76,000)
NET REMEASUREMENT GAIN 129,000
5. Answer C
FVPA - January 1 2,400,000
PBO - December 31 (2,500,000)
ACCRUED BENEFIT COST ( 100,000)
Problem 18-22
1. ANSWER A
FVPA-January 1 2,600,000
Contribution to the plan 350,000
Benefits paid ( 150,000)
Total 2,800,000
FVPA-December 31 3,000,000
Total 2,800,000
Actual return on plan assets 200,000
2. ANSWER A.
PBO January 1 2,000,000
Current service cost 100,000
Interest expense on PBO (10% x 2,000,000) 200,000
Benefits paid ( 150,000)
Total 2,150,000
Total 2,150,000
PBO-December 31 2,000,000
ACTUARIAL GAIN 50,000
3. ANSWER C.
Current service cost 100,000
Interest expense on PBO (10% x 2,000,000) 200,000
Interest income on FVPA (10% x 2,600,000) (260,000)
Interest expense on effect of asset ceiling (10% x 400,000) 40,000
Employee benefit expense 80,000
4. ANSWER D.
Actual return 200,000
Interest income (10% x 2,600,000) (260,000)
Remeasurement loss on plan assets (60,000)
Actuarial gain - decrease in PBO 50,000
Remeasurement loss on effect of asset ceiling (160,000)
NET REMEASUREMENT LOSS (170,000)