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Pensions

Measuring, recording, and reporting pension expense and liability

Eckert, Inc. on January 1, 2008 initiated a noncontributory, defined-benefit pension plan that grants benefits to its 100 employees for services rendered in years prior to the adoption of the pension plan. The total expected service-years of the 100 employees who are expected to receive benefits under the plan is 1,200. An ac

Pension Plan - Lincoln County Firefigthers

Please see attachment The basic financial statements of a pension plan provide only limited amounts of information as to its economic condition. The following information relates to the Lincoln County Firefighters' Pension Plan (dollar amounts in millions): Beginning-of-Year Balances Cash and cash equivalents, January 1 $

Pension Question (MC)

In computing the service cost component of pension expense, the FASB concluded that The accumulated benefit obligation provides a more realistic measure of the pension obligation on a going concern basis. A company should employ an actuarial funding method to report pension expense that best reflects the co

Journal Entries of Pension Plans

#7 The accountant for xyz Corporation has developed the following information for the company's defined-benefit pension plan for 2008: Service cost $500,000 Actual return on plan assets 260,000 Annual contribution to the plan 900,000 Amortization of unrecognized prior service cost 105,000 Benefits paid to retirees 60,0

Pension Plan Benefit and Obligation

Presented below is information related to the pension plan of A Company for the year 2008. 1. The service cost of pension expense is $240,000 using the projected benefits approach. 2. The projected benefit obligation and the accumulated benefit obligation at the beginning of the year are $300,000 and $280,000, respectively.

Benefit Pension Plan

Your accounting firm has been hired to consult with the Graduate Manufacturing Company (GMC). GMC is preparing its annual financial statements as of December 31. GMC has a defined benefit pension plan. For the year, GMC provides you with the following information: Service cost for the year $3,500,000 Projected benefit o

Defined-Benefit Pension Plan

George's company has a defined-benefit pension plan. Suppose the plan says a benefit equal to 1% of final salary per year of service. George is 40 years old and has worked for the company for 15 years. His last year's salary was $50,000. a) if normal retirement age is 65, the interest rate is 8%, and George's life expectancy

Lyon Corporation Major Pension Concepts

(Major Pension Concepts) Lyons Corporation is a medium-sized manufacturer of paperboard containers and boxes. The corporation sponsors a noncontributory, defined benefit pension plan that covers its 250 employees. Spring Meissner has recently been hired as president of Lyons Corporation. While reviewing last year's financial sta

Pension for Linda Bertsler Company

Linda Bertsler Company sponsors a defined benefit pension plan. The corporation's actuary provides the following information about the plan. January 1,2008 December 31,2008 Vested benefit obligation $1,500 $1,900 A

Lincoln County Firefighters' Pension Plan

The basic financial statements of a pension plan provide only limited amounts of information as to its economic condition. The following information relates to the Lincoln County Firefighters' Pension Plan (dollar amounts in millions): Beginning-of-Year Balances Cash and cash equivalents, January 1

PENSIONS

Prepare the following: a. Pension worksheets for the Simpson Company for years ended December 31, 2001 and 2002. b. Journal entries to record the pension expense for both years. c. A reconciliation schedule for both years. ASSUMPTIONS FOR 2001: plan assets, Jan 1, 2001 $450,000.00 Pro

Pension Expenses in a Company

The following information for Norman Enterprises is given below: December 31, 2004 ????????????????? Assets and obligations ?????????????????????? Plan assets (at fair value)

Projected Benefit Obligation

The projected benefit obligation is the measure of pension obligation that a. is not sanctioned under generally accepted accounting principles for reporting the service cost component of penion expense. b. requires the longest possible period for funding to maximize the tax deduction. c. is required to be used for re

Pension Expense for AMR Corporation

AMR Corporation (parent company of American Airlines) reported the following for 2004 (in millions). Service cost $358 Interest on P.B.O. 567 Return on plan assets 569 Amortization of unrecognized prior service cost 14 Amortization of unrecognized net loss 58 Compute AMR Corporation's 2004 pension expense.

Additional liability in pension plans

Judy O'Neill Corporation provides the following information at December 31, 2007. Accumulated benefit obligation $2,800,000 Plan assets at fair value 2,000,000 Accrued pension cost 200,000 Unrecognized prior service cost 1,100,000 Compute the additional liability that O'Neill must record at December 31, 2007

Pension Plans

What are defined benefit and defined contribution pension plans and do companies regularly do a lot of switching between the two plans and if so why?

Pension Expense

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

Discuss: Pension Plans and 401K

Questions: How does a pension plan differ from a 401K plan? As an employee, would you rather have a pension plan or a 401K plan? Why? If you were an employer, would your decision change? Why or why not?

Additional Pension Liability: Federal Co.

Additional Pension Liability: Federal Co. had the following selected balances at December 31, 2008: Projected benefit obligation $4,700,000 Accumulated benefit obligation 4,550,000 Fair value of plan assets 4,340,000 Service cost for 2008 600,000 Unrecognized prior service cost 170,000 Accrued pension cost 50,000 Inst

Hava Corporation's defined benefit pension plan

The following information reconciles the funded status of Hava Corporation's defined benefit pension plan with the amount reported in its balance sheet for the prepaid (accrued) pension: ($ in 000s) 2006 2006 Beginning balance

Computation of Pension Expense

See the attachment. E20-2 (Computation of Pension Expense) Rebekah Company provides the following information about its defined benefit pension plan for the year 2005. Service cost $ 90,000 Contribution to the plan 105,000 Prior service cost amortization 10,000 Actual and expected return on plan assets

Pension funds

A company sets up a pension fund for its employees. Its aim is to pay out £1,500 monthly to each pensioner over his / her remaining lifetime. The actuary assumes that employees retire at the age of 65 and have a life expectancy of 20 more years after that. The company wishes to set aside a certain amount of money P for each pen