The following data are available pertaining to Household Appliance Company's retiree health care plan for 2024: Number of employees covered 2 Years employed as of January 1, 2024 Attribution period Expected postretirement benefit obligation, January 1 Expected postretirement benefit obligation, December 31 Interest rate Funding 2 25 $ 63,000 $ 66,150 5 none [each] years 96 Required: What is the accumulated postretirement benefit obligation at the beginning of 2024? What Is Interest cost to be Included in 2024 postretirement benefit expense? What is service cost to be Included in 2024 postretirement benefit expense? Prepare the Journal entry to record the postretirement benefit expense for 2024.

The following data are available pertaining to Household Appliance Company's retiree health care plan for 2024: Number of employees covered 2 Years employed as of January 1, 2024 Attribution period Expected postretirement benefit obligation, January 1 Expected postretirement benefit obligation, December 31 Interest rate Funding 2 25 $ 63,000 $ 66,150 5 none [each] years 96 Required: What is the accumulated postretirement benefit obligation at the beginning of 2024? What Is Interest cost to be Included in 2024 postretirement benefit expense? What is service cost to be Included in 2024 postretirement benefit expense? Prepare the Journal entry to record the postretirement benefit expense for 2024.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 16EA: An employee and employer cost-share pension plan contributions and health insurance premium...

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Classified Electronics has an unfunded retiree health care plan. Each of the company's three employees has been with the firm since its inception at the beginning of 2023. As of the end of 2024, the actuary estimates the total net cost of providing health care benefits to employees during their retirement years to have a present value of $84,000. Each of the employees will become fully eligible for benefits after 22 more years of service but aren't expected to retire for 35 more years. The interest rate is 6%. Required: 1. What is the expected postretirement benefit obligation at the end of 2024? 2. What is the accumulated postretirement benefit obligation at the end of 2024? 3. What is the expected postretirement benefit obligation at the end of 2025? 4. What is the accumulated postretirement benefit obligation at the end of 2025? 1. Expected postretirement benefit obligation 2024 2. Accumulated postretirement benefit obligation 2024 3. Expected postretirement benefit obligation 2025…
The following data are available pertaining to Household Appliance Company's retiree health care plan for 2024: Number of employees covered 2 Years employed as of January 1, 2024 3 [each] Attribution period 25 years Expected postretirement benefit obligation, January 1 $ 68,000 Expected postretirement benefit obligation, December 31 $ 71,400 Interest rate 5 % Funding none Required: What is the accumulated postretirement benefit obligation at the beginning of 2024? What is interest cost to be included in 2024 postretirement benefit expense? What is service cost to be included in 2024 postretirement benefit expense? Prepare the journal entry to record the postretirement benefit expense for 2024.
The following data are for Guava Company's retiree health care plan for the current calendar year. Number of employees covered Years employed as of January 1 Attribution period EPBO, January 1 EPBO, December 31 Interest rate Funding and plan assets None What is the service cost to be included in the current year's postretirement benefit expense? O $3,200. $4,000. 5 4(each) 20years O $3,180. O $3,000. $ 60,000 $ 63,600 6%
The following data are for Guava Company's retiree health care plan for the current calendar year. Number of employees covered Years employed as of January 1 Attribution period EPBO, January 1 EPBO, December 31 Interest rate Funding and plan assets Multiple Choice O O What is the service cost to be included in the current year's postretirement benefit expense? (Round your answer to the nearest whole dollar.) $3,200. $3,456. $3,900. 5 4 (each) 20years $3,306. $ 64,000 $69,120 8% None
The following data are available pertaining to Household Appliance Company's retiree health care plan for 2021: Number of employees covered 2 Years employed as of January 1, 2021 2 (each) Attribution period 25 years Expected postretirement benefit obligation, Jan. 1 $67,000 Expected postretirement benefit obligation, Dec. 31 $70,350 Interest rate 5% Funding none Required: 1-3 What is the accumulated postretirement benefit obligation at the beginning of 2021? what is…
The following data are available pertaining to Household Appliance Company's retiree health care plan for 2021: Number of employees covered 2 Years employed as of January 1, 2021 2 [each] Attribution period 25 years Expected postretirement benefit obligation, Jan. 1 $ 58,000 Expected postretirement benefit obligation, Dec. 31 $ 60,900 Interest rate 5 % Funding none Required:1. What is the accumulated postretirement benefit obligation at the beginning of 2021?2. What is interest cost to be included in 2021 postretirement benefit expense?3. What is service cost to be included in 2021 postretirement benefit expense?4. Prepare the journal entry to record the postretirement benefit expense for 2021.
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(Post-Retirement Benefit Expense Calculation and Entries, IFRS, ASPE) Opsco Corp. provides the following information about its post-retirement health-care benefit plan for the year 2023: Current service cost $ 202,500 Contribution to the plan 47,250 Actual return on plan assets 141,750 Benefits paid 90,000 Plan assets at January 1, 2023 1,597,500 Defined post-retirement benefit obligation at January 1, 2023 1,822,500 Discount rate 9% Instructions Assuming Opsco follows IFRS, calculate the post-retirement benefit expense for 2023, and prepare all required journal entries related to the post-retirement benefit plan that were made by the company in 2023. Assuming Opsco follows ASPE, calculate the post-retirement benefit expense for 2023, and prepare all required journal entries related to the post-retirement benefit plan that were made by the company in 2023.
3 The following data are available pertaining to Firewall Corporation's retiree health plan for 2021: Number of employees covered Years employed as of January 1, 2021 Attribution period EPBO, January 1 EPBQ, December 31 Interest rate Funding 4 5 (each) 20 years $112,000 $123,200 10% none Required: 1. What is the APBO at the beginning of 2021? 2. What is the interest cost for 2021? 3. What is service cost for 2021? 4. Prepare the journal entry to record the postretirement benefit expense for 2021. Complete this question by entering your answers in the tabs below. Req 1 to 3 Req 4 What is the APBO at the beginning, interest cost and service cost for 2021? 1. APBO 2. Interest cost 3. Service cost Req 1 to 3 Req 4 >
An employee and employer cost-share pension plan contributions and health insurance premium payments. If the employee covers 35% of the pension plan contribution and 25% of the health insurance premium, what would be the employees total benefits responsibility if the total pension contribution was $900, and the health insurance premium was $375? Include the journal entry representing the payroll benefits accumulation for the employer in the month of February.
Items Balance, Jan. 1, 2025 (a) Service Cost (b) Interest Cost (c) Actual Return (d) Contributions (e) Benefits Journal Entry for 2025 Balance, Dec. 31, 2025 The service cost for 2025 is O $115000. O $6000. O $37000. O $38000. Annual Pension Expense ?? dr 15000 dr General Journal Entries 16000 cr $37000 Pharoah Corporation Pension Worksheet Cash $37000 cr ?? Show Transcribed Text Pension Asset/ Liability ?? Memo Record Projected Benefit Obligation $115000 cr $115000 dr ?? Plan Assets ??