Chapter 20 Solutions

Topics: Income statement, Balance sheet, Asset Pages: 10 (636 words) Published: November 8, 2014
E20-7
Rydell Corp
MemoRecord

Items
Annual
Pension
Expense

Cash
OCI—Prior
Service
Cost
Pension
Asset/Liability
Projected
Benefit
Obligation

Plan
Assets
Balance, Jan. 1, 2012

13,800 cr
560,000 cr
546,200 dr
Prior service cost

120,000 dr

120,000 cr

New Balance, January 1, 2012

680,000 cr
546,200 dr
Service cost

58,000 dr

58,000 cr

Interest Cost
$680,000 x 9% = $61,200

61,200 dr

61,200 cr

Actual return

52,280 cr

52,280 dr
Unexpected gain/ loss

Amortization of PSC

17,000 dr.

17,000 cr

Contributions

65,000 cr

65,000 dr
Benefits

40,000 dr

40,000 cr
Journal entry for 2012

83,920 dr

65,000 cr

103,000 dr

121,920 cr

Accumulated OCI, Jan. 1, 2012

-0-

Balance, Dec. 31, 2012

103,000 dr
135,720 cr
759,200 cr
623,480 dr
E20-7 Continued

Pension Expense 83,920
OCI (PSC)103,000
Cash 65,000
Pension Asset/Liability121,920
E20-10
Webb Corp.
Memo Record

Items
Annual
Pension
Expense

Cash
OCI—Prior
Service
Cost

OCI---
Gain/Loss

Pension
Asset/Liability
Projected
Benefit
Obligation

Plan
Assets
Balance, Jan. 1, 2012

120,000 cr

600,000 cr

480,000 dr
Service cost

90,000 dr

90,000 cr

Interest Cost
$600,000 x 9% = $54,000

54,000 dr

54,000 cr

Actual return

55,000 cr

55,000 dr
Unexpected gain
$55,000 - $52,000 = $3,000

3,000 dr

3,000 cr

Amortization of PSC

19,000 dr

19,000 cr

Liability increase

76,000 dr

76,000 cr

Amortization of gain/loss

Contributions

99,000 cr

99,000 dr
Benefits

85,000 dr

85,000 cr
Journal entry for 2012

111,000 dr
99,000 cr

19,000 cr
73,000 dr
66,000 cr

Accumulated OCI, Jan. 1, 2012

100,000 dr
-0-

Balance, Dec. 31, 2012

81,000 dr
73,000 dr
186,000 cr
735,000 cr
549,000 dr
E20-10 Continued

Pension Expense111,000
OCI (G/L) 73,000
OCI (PSC) 19,000
Cash 99,000
Pension Asset/Liability 66,000

P20-1
Harrington CompanyMemo Record

Items
Annual
Pension
Expense

Cash
OCI—Prior
Service
Cost

OCI---
Gain/Loss

Pension
Asset/Liability
Projected
Benefit
Obligation

Plan
Assets
Balance, Jan. 1, 2012

300,000 cr
4,500,000 cr
4,200,000 dr
Service cost

150,000 dr

150,000 cr

Interest Cost
$4,500,000 x 10% = 450,000
450,000 dr

450,000 cr

Actual return

252,000 cr

252,000 dr
Unexpected gain/loss
252,000 – 6%(4,200,000) = 0

Amortization of PSC

Liability increase

Amortization of gain/loss

Contributions

240,000 cr

240,000 dr
Benefits

200,000 dr
200,000 cr
Journal entry for 2012

348,000 dr
240,000 cr

108,000 cr

Accumulated OCI, Jan. 1, 2012

Balance, Dec. 31, 2012

408,000 cr
4,900,000 cr
4,492,000 dr
P20-1
Harrington Company
Memo Record

Items
Annual
Pension
Expense

Cash
OCI—Prior
Service
Cost

OCI---
Gain/Loss

Pension
Asset/Liability
Projected
Benefit
Obligation

Plan
Assets
Balance, Jan. 1, 2013

408,000 cr
4,900,000 cr
4,492,000 dr
Prior Service Cost

500,000 dr.

500,000 cr

New balance, Jan. 1, 2013

5,400,000 cr
4.492.000 dr
Service cost

180,000 dr

180,000 cr

Interest Cost
$5,400,000 x 10% = 540,000
540,000 dr

540,000 cr

Actual return

260,000 cr

260,000 dr
Unexpected loss
$260,000 – 8%($4,492,000)
99,360 cr

99,360 dr...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay on Chapter 20
  • chapter 5 solutions Essay
  • Chapter 21 Solutions Essay
  • Solutions To Chapter 2 Problems Essay
  • Solutions Chapter 9 Essay
  • Chapter 4 solutions Essay
  • Chapter 12 Solutions Research Paper
  • Essay about Chapter 4 Solutions

Become a StudyMode Member

Sign Up - It's Free