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Chapter 20: Question 19Q (page 1161)

At the end of the current period, Agler Inc. had a projected benefit obligation of 400,000andpensionplanassets(atfairvalue)of350,000. What are the accounts and amounts that will be reported on the companyโ€™s balance sheet as pension assets or pension liabilities?

Short Answer

Expert verified

To conduct the fundamentalanalysisby thefinancial analystof an organizationbalance sheetis used. It provides asummarized wayof how an organization isperforming.

Step by step solution

01

Given the amounts as

Particulars

Amount

Projected benefit obligation

$400,000

Plan assets

$350,000

02

Reporting of the amounts

Agler Inc
Balance Sheet

Liabilities

Amount

Projected benefit obligation

($400,000)

Pension plan assets

$350,000

Pension liability

($50,000)

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Most popular questions from this chapter

At the end of the current period, Oxford Ltd. has a defined benefit obligation of 195,000andpensionplanassetswithafairvalueof110,000. The amount of the vested benefits for the plan is 105,000.Whatamountrelatedtoitspensionplanwillbereportedonthecompanyโ€ฒsstatementoffinancialposition?(a)5,000. (c) 85,000.(b)90,000. (d) $20,000.

Explain the difference between service cost and prior service cost.

Boey Company reported net income of 25,000in2018.Ithadthefollowingamountsrelatedtoitspensionplanin2018:Actuarialliabilitygain10,000; Unexpected asset loss $14,000; Accumulated other comprehensive income (G/L) (beginning balance), zero. Determine for 2018 (a) Boeyโ€™s other comprehensive income, and (b) comprehensive income.

The meaning of the term โ€œfundโ€ depends on the context in which it is used. Explain its meaning when used as a noun. Explain its meaning when it is used as a verb.

The following defined pension data of Rydell Corp. apply to the year 2017. Projected benefit obligation, 1/1/17 (before amendment) $560,000 Plan assets, 1/1/17 546,200 Pension liability 13,800 On January 1, 2017, Rydell Corp., through plan amendment, grants prior service benefi ts having a present value of 120,000 Settlement rate 9% Service cost 58,000 Contributions (funding) 65,000 Actual (expected) return on plan assets 52,280 Benefits paid to retirees 40,000 Prior service cost amortization for 2017 17,000 Instructions For 2017, prepare a pension worksheet for Rydell Corp. that shows the journal entry for pension expense and the year-end balances in the related pension accounts.

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