Explore BrainMass

Explore BrainMass

    Pension Expenses for Bailey Company

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    9 total word problems. Please see the attached file.

    E20-1 Pension Expenses

    The Bailey Company has had a defined benefit pension plan for several years. At the end of 2007 the company's actuary provided the following information for 2007....

    E20-2 On December 31, 2007 the Robey Company accumulated the following information for 2007 in regard to its defined benefit pension plan:

    © BrainMass Inc. brainmass.com March 4, 2021, 10:25 pm ad1c9bdddf
    https://brainmass.com/business/leasing/pension-expenses-bailey-company-330232

    Attachments

    Solution Preview

    E20-1)

    Service cost $115,000
    Interest cost on projected benefit obligation 16,000
    Expected return on plan assets (14,000)
    Amortization of prior service cost 4,000
    Amortization of net loss 2,000
    2010 pension expense $123,000

    2007
    Dec. 31 Pension Expense 123,000
    Cash 123,000

    E20-2)

    1. Service cost $105,000
    Interest cost on projected benefit obligation 12,000
    Expected return on plan assets (11,000)
    Amortization of prior service cost 2,000
    2007 pension expense $108,000

    2. (a) 2007
    Dec. 31 Pension Expense 108,000
    Cash 108,000

    31 Accrued/Prepaid Pension Cost 2,000
    Other Comprehensive Income 2,000

    (b) 2007
    Dec. 31 Pension Expense 108,000
    Cash 107,000
    Accrued /Prepaid Pension Cost 1,000

    31 Accrued/Prepaid Pension Cost 2,000
    Other Comprehensive Income 2,000

    (c) 2007
    Dec. 31 Pension Expense 108,000
    Accrued /Prepaid Pension Cost 4,000
    Cash 112,000

    31 Accrued/Prepaid Pension Cost 2,000
    Other Comprehensive Income 2,000

    E20-3)

    1. Service cost $120,000
    Interest cost ($600,000 x 0.10) 60,000
    Expected return on plan assets ($520,000 x 0.10) (52,000)
    2007 pension expense $128,000

    2. (a) 2007
    Dec. 31 Pension Expense 128,000
    Cash 128,000

    (b) 2007
    Dec. 31 Pension Expense 128,000
    Cash 120,000
    Accrued/Prepaid Pension Cost 8,000

    E20-4)

    Service cost $127,000
    Interest cost ($634,000 x 0.09) 57,060
    Expected return on plan assets ($589,000 x 0.09) (53,010)
    2007 pension expense $131,050

    2007
    Dec. 31 Pension Expense 131,050
    Cash 128,000
    Accrued/Prepaid Pension Cost 3,050

    E20-6)

    Cash contribution (12/31/2007) $143,000
    Accrued/prepaid pension ...

    Solution Summary

    The expert examines pension expenses for Bailey Company.

    $2.49

    ADVERTISEMENT