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Differentiate between a defined contribution pension plan an

Please see attached

Question 2

Differentiate between a defined contribution pension plan and a defined benefit pension plan. Explain how the employer's obligation differs between the two types of plans.

Question 10

Identify the five components that comprise pension expense. Briefly explain the nature of each component.

E.20-7

(Basic Pension Worksheet) The following defined pension data of Doreen Corp. apply to the year 2008.

Projected benefit obligation, 1/1/08 (before amendment) 560,000
Plan assets, 1/1/08 546,200
Prepaid/accrued pension cost (credit) 13,800
"On January 1, 2008, Doreen Corp., through plan amendment, grants prior service benefits having a present value of
" 100,000
Settlement rate 9%
Service cost 58,000
Contributions (funding) 55,000
Actual (expected) return on plan assets 52,280
Benefits paid to retirees 40,000
Prior service cost amortization for 2008 17,000

Instructions

For 2008, prepare a pension worksheet for Doreen Corp.
that shows the journal entry for pension expense and the year-end balances in the related pension accounts.

E.22-19

(Error Analysis; Correcting Entries) A partial trial balance of Julie Hartsack Corporation is as follows on December 31, 2008.
dr. cr.
Supplies on hand 2,700
Accrued salaries and wages 1,500
Interest receivable on investments 5,100
Prepaid insurance 90,000
Unearned rent 0
Accrued interest payable 15,000

Additional adjusting data:

A physical count of supplies on hand on December 31, 2008, totaled $1,100.

Through oversight, the Accrued Salaries and Wages account was not changed during 2008. Accrued salaries and wages on December 31, 2008, amounted to $4,400.

The Interest Receivable on Investments account was also left unchanged during 2008. Accrued interest on investments amounts to $4,350 on December 31, 2008.

The unexpired portions of the insurance policies totaled $65,000 as of December 31, 2008.

$28,000 was received on January 1, 2008 for the rent of a building for both 2008 and 2009. The entire amount was credited to rental income.

Depreciation for the year was erroneously recorded as $5,000 rather than the correct figure of $50,000.

A further review of depreciation calculations of prior years revealed that depreciation of $7,200 was not recorded. It was decided that this oversight should be corrected by a prior period adjustment.

Instructions

Assuming that the books have not been closed, what are the adjusting entries necessary at December 31, 2008? (Ignore income tax considerations.)

Assuming that the books have been closed, what are the adjusting entries necessary at December 31, 2008? (Ignore income tax considerations.)

Attachments

Solution Summary

Differentiate between a defined contribution pension plan and a defined benefit pension plan. Explain how the employer's obligation differs between the two types of plans.

Question 10

Identify the five components that comprise pension expense. Briefly explain the nature of each component.

E.20-7

(Basic Pension Worksheet) The following defined pension data of Doreen Corp. apply to the year 2008.

Projected benefit obligation, 1/1/08 (before amendment) 560,000
Plan assets, 1/1/08 546,200
Prepaid/accrued pension cost (credit) 13,800
"On January 1, 2008, Doreen Corp., through plan amendment, grants prior service benefits having a present value of
" 100,000
Settlement rate 9%
Service cost 58,000
Contributions (funding) 55,000
Actual (expected) return on plan assets 52,280
Benefits paid to retirees 40,000
Prior service cost amortization for 2008 17,000

Instructions

For 2008, prepare a pension worksheet for Doreen Corp.
that shows the journal entry for pension expense and the year-end balances in the related pension accounts.

E.22-19

(Error Analysis; Correcting Entries) A partial trial balance of Julie Hartsack Corporation is as follows on December 31, 2008.
dr. cr.
Supplies on hand 2,700
Accrued salaries and wages 1,500
Interest receivable on investments 5,100
Prepaid insurance 90,000
Unearned rent 0
Accrued interest payable 15,000

Additional adjusting data:

A physical count of supplies on hand on December 31, 2008, totaled $1,100.

Through oversight, the Accrued Salaries and Wages account was not changed during 2008. Accrued salaries and wages on December 31, 2008, amounted to $4,400.

The Interest Receivable on Investments account was also left unchanged during 2008. Accrued interest on investments amounts to $4,350 on December 31, 2008.

The unexpired portions of the insurance policies totaled $65,000 as of December 31, 2008.

$28,000 was received on January 1, 2008 for the rent of a building for both 2008 and 2009. The entire amount was credited to rental income.

Depreciation for the year was erroneously recorded as $5,000 rather than the correct figure of $50,000.

A further review of depreciation calculations of prior years revealed that depreciation of $7,200 was not recorded. It was decided that this oversight should be corrected by a prior period adjustment.

Instructions

Assuming that the books have not been closed, what are the adjusting entries necessary at December 31, 2008? (Ignore income tax considerations.)

Assuming that the books have been closed, what are the adjusting entries necessary at December 31, 2008? (Ignore income tax considerations.)

$2.19