Exam 17: Pensions and Other Employee Future Benefits

Five Star Hotels provides a defined benefit pension for its employees.At the end of fiscal year 2016,which ended on December 31,the pension plan supplied Five Star Hotels with information about the pension,which is summarized in the following tables: Required: Provide the journal entries for Five Star's pension plan for 2016

A company reported $350,000 of pension expense in its income statement.The balance sheet showed that the pension liability increased by $20,000 over the year.The company was hoping to contribute $30,000.How much cash was paid to the pension trustee during the period?

Which of the following best describes a "defined benefit plan"?

Feldman has a defined benefit pension plan.The company's balance sheet shows a defined benefit asset of $770,000 at year-end.The company's records show that the company had amended the pension plan two years ago,giving rise to $600,000 of additional benefits to employees.These additional benefits vest 10 years after the plan amendment.The balance of unamortized actuarial losses at year-end is $340,000.The pension plan has $35,000,000 of assets at market value. Required: Determine the value of the accrued benefit obligation for Feldman's pension plan.

What amount is included in the pension reconciliation for the balance sheet?

Tener Company sponsors a defined contribution pension plan for its employees.The plan specifies that the company will contribute $2 for every dollar that an employee contributes to the plan.Employees are eligible to contribute up to 7% of their salary to the pension plan.During 2017,employees covered by the pension plan earned salaries totalling $42 million.Employee contributions to the pension totalled $2.1 million.Tener contributed $3 million to the plan during the year. Required: Provide the summary journal entry for Tener's pension plan for 2017.

Prepare the Summarized Pension Trustee's Report on Pension Plan Assets (without numbers)in good form.

What amount will be presented on the balance sheet for fiscal 2017?

Gander Products has a defined contribution pension plan for its employees.The plan requires the company to contribute 6% of these employees' salaries to the pension.In 2016,total salary for employees covered by the pension plan totalled $40 million,of which 75% is attributable to employees involved in manufacturing while the remaining 25% of salaries relate to administrative staff.The company contributed $500,000 to the pension during the year. Required: Provide the summary journal entry for Gander's pension plan for 2016.

What is the pension expense for the following plan? "The plan requires the company to contribute $500 for each of its 1,000 employees.The plan hopes to accumulate enough funds so that each retiree receives $20,000 in the future;the company has no obligation to guarantee the investment returns."

Prepare the Summarized Pension Actuary's Report on Pension Plan Obligations (without numbers)in good form.

What are past service costs in a defined benefit plan?

Explain the accounting for defined contribution plans and also discuss why it is straightforward.

Humid Furnishings produces quality household furniture.The company has only one defined benefit pension plan,which covers its 30 carpenters.The company has completed its accounting for the year and closed its books.The draft financial statements show a defined benefit asset of $90,000.Your review of the company's records shows that the pension plan has a deficit of $50,000.The company's working papers show that $80,000 of actuarial losses remain unamortized at year-end,and $16,000 of past service cost was amortized during the year. Required: Determine the number of years that remain until employees are entitled to receive the additional benefits related to the past service cost.

What is the fundamental difference between a defined contribution and a defined benefit pension plan?

What amount will be presented on the balance sheet for fiscal 2017?

What is an actuarial gain?

In pension accounting,how are past service costs accounted for under ASPE?

A pension plan promises to pay $70,000 at the end of each year for 10 years of the retirement period. Required: Compute the funds required to fund this pension plan at the start of the retirement period assuming: a.discount rate of 12%;or b.discount rate of 9%.

Compute the pension expense and the amount of OCI for the two years with the following Pension Trustee Report and Pension Actuary Report: