Exam 17: Employee Compensation-Payroll, Pensions, Other Comp Issues

Jones Corporation pays its employees monthly. The following information is available for the January payroll: All employees' salaries are subject to the tax rates mentioned above for Jones Corporation. Using the information above, what was the liability relative to the January payroll after the employees received and cashed their payroll checks?

One component of net pension expense, unrecognized gains and losses, comes from the following sources:

Interest cost relating to defined-benefit pension plans represents the

Flash Inc. has a defined benefit plan for its employees. The following information relates to this plan: There was no unrecognized prior service cost or unrecognized gains or losses. Flash's net periodic pension cost for the year was

Chester Company has a defined benefit plan. The fair value of plan assets on January 1, 2011, was $1,500,000. No unrecognized net loss or gain existed. On December 31, 2011, the fair value of the plan assets was $1,860,000. Benefits paid to retirees equaled $300,000. Company contributions to the plan totaled $360,000. The settlement rate was 8 percent, and the expected long-term rate of return on plan assets was 10 percent. The actual return on plan assets was

The following information relates to the defined benefit pension plan for the McDonald Company for the year ending December 31, 2011. Using the information above, service cost for the year would be

Franklin Company sponsors a noncontributory, defined-benefit pension plan. At December 31, 2011, the end of the company's fiscal year, the actuary's report showed pension benefits paid of $15,000, and PBO balance of $300,000. The trustee's report showed a beginning plan assets balance (at fair value) of $240,000, contributions for the year of $36,000, and an actual return on plan assets of 10 percent (the expected return was 9 percent). The underfunded PBO at the end of 2011 was

Which of the following statements is correct?

Jones Corporation pays its employees monthly. The following information is available for the January payroll: All employees' salaries are subject to the tax rates mentioned above for Jones Corporation. Using the information above, the company's total expense related to the January payroll is

During the first week of January, Sam Jones earned $200. Assume that FICA taxes are 7.65 percent of wages up to $50,000, state unemployment tax is 5.0 percent of wages up to $13,000, and federal unemployment tax is 0.8 percent of wages up to $13,000. Assume that Sam has voluntary withholdings of $10 (in addition to taxes) and that federal and state income tax withholdings are $18 and $6, respectively. Using the information above, what amount is the check, net of all deductions, that Sam received for the week's pay?

Reagan Western Wear, Inc. has a defined benefit pension plan covering its 120 employees. Information relating to the plan follows: Reagan expects a 10 percent return on its pension fund assets. Compute the difference between the actual return and the expected return and explain how this amount affects net periodic pension cost for 2011.

If the actual return on pension fund assets exceeds the expected return for the period, the difference is

Washington Corporation provides an incentive compensation plan under which its president is to receive a bonus equal to 10 percent of Washington's income in excess of $100,000 before deducting income tax but after deducting bonus. If income before income tax and bonus is $320,000 and the effective tax rate is 40 percent, the amount of the bonus should be

Each full-time employee of Sunshine Greenhouse is entitled to ten paid sick days each year. The sick pay is not vested, but any unused sick days can be carried over to subsequent years. Under FASB Statement No. 43, Sunshine Greenhouse should

Which of the following criteria is not required for the recognition of a liability for compensated absences under FASB Statement No. 43?

Which of the following statements characterizes defined benefit plans?

Which of the following is not a post-employment benefit, according to SFAS No. 112, "Employers' Accounting for Postemployment Benefits"?

What is measured by the accumulated benefit obligation?