Pension Expenses for Bailey Company
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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:
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Solution Summary
The expert examines pension expenses for Bailey Company.
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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 ...
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- MBA, California State University, Sacramento
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