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True [87]
3 years ago
14

On January 1, 2018, McGee Co. had the following balances: Projected benefit obligation $7,310,000 Fair value of plan assets 7,31

0,000 Other data related to the pension plan for 2018: Service cost 306,000 Contributions to the plan 450,000 Benefits paid 441,000 Actual return on plan assets 435,000 Settlement rate 9% Expected rate of return 6% Determine the projected benefit obligation at December 31, 2018. There are no net gains or losses. Projected benefit obligation $ Determine the fair value of plan assets at December 31, 2018. Fair value of plan assets $ Calculate pension expense for 2018. Pension expense $ Prepare the journal entry to record pension expense and the contributions for 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit
Business
1 answer:
ad-work [718]3 years ago
4 0

Answer:

A.$7,831,000

B.$7,754,000

C.$527,900

Explanation:

(a)Projected benefit obligation, January 1 $7,310,000

Service cost 306,000

Interest cost (9% × $7,310,000) 656,900

Benefits paid (441,000)

Projected benefit obligation, December 31

$7,831,000

(b)Fair value of plan assets, January 1 $7,310,000

Actual return 435,000

Contributions 450,000

Benefits paid(441,000)

Fair value of plan assets, December 31 $7,754,000

(c)Service cost $306,000

Interest cost (9% × $7,310,000)656,900

Actual (and expected) return on plan assets(435,000)

Pension expense$527,900

(d) Dr Pension expenses $527,900

Cr Pension asset/liability and Cash $527,000

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The economic order quantity (EOQ) of Dennis Co.’s only product is 100 units per month. When developing the budget for the next y
Feliz [49]

Answer:

5,500 units

Explanation:

Use the economic order quantity (EOQ) formula to calculate the estimated annual demand

EOQ = \sqrt{\frac{2DS}{H} }

Where

EOQ = 100 units

S = Oerdering cost = $30

H = Carrying cost per unit = $15

D = Annua Demand = ?

Placing values in the formula

100 units = \sqrt{\frac{2D (30) }{15} }

Taking Square on both sides

100^{2} = (\sqrt{\frac{2D (30) }{15} })^{2}

10,000 = \frac{2D (30) }{15} }

10,000 = \frac{60D }{15} }

10,000 = 4D

D = 10,000 / 4

D = 2,500 units

Now calculate the estimated annual demand

Estimated annual demand = Annual Demand + Expected Increase in next month = 2,500 units + 3,000 units = 5,500 units

3 0
3 years ago
When a firm sells goods or services on credit, the owner needs to remember that for cash budgeting purposes ________.
miskamm [114]

Answer:

The correct option is c. she/he must account for a delay between the sale and the actual collection of the proceeds

Explanation:

As in the given question, it is mentioned that the credit sale is made, so the owner would remember the delay between the sale and the actual collection so that he knows the gap between these two.

Moreover, for cash budgeting purposes, it is necessary to remember when the owner received the cash and the date on which credit sale was made.

So, all other options are incorrect because it doesn't make any comparison between these two thing which is important for cash budgeting purposes.

Hence, The correct option is c. she/he must account for a delay between the sale and the actual collection of the proceeds

4 0
3 years ago
(Deferred Tax Asset with and without valuation Account) Jennifer Capriati Corp. has a deferred tax asset account with a balance
valina [46]

Answer:

a. Income Tax Expense (Dr.) $298,000

Deferred Tax (Dr.) $30,000

Income Tax Payable (Cr.) $328,000

Explanation:

b. Income Tax expense (Dr.) $30,000

Allowance to reduce deferred tax value to NRV (Cr.) $30,000

Income tax payable is calculated based on tax rate of 40%.

$820,000 * 40% = $382,000

8 0
3 years ago
Consider the list of economic questions and issues below. Which are microeconomic issues, and which are macroeconomic issues? Pl
anastassius [24]

Answer:

See explanation section

Explanation:

<em>1.</em><em> How much will the economy grow next year?</em> - This is a macroeconomic issue. Macroeconomic deals with the economy as a whole. It also deals with the large-scale structure and performance of an industry, behavior, and decision making of a country. Macroeconomic issues include global or national economies. Since the question is about whether an economy grows, it is about entire country's economy.

<em>2.</em><em> Why do economics majors earn more than marketing majors?</em> - Microeconomics issue. Generally, microeconomics issues deal with the individual level and firm-level decision-making. Since the question does not involve whole the industry or economy, it is a microeconomics issue. Instead the question is about whether the major of economics students earn more or less. It is only about an individual level topic.

<em>3.</em><em> How does Apple decide how many iPads to produce?</em> - Microeconomics issue as we are talking about only Apple company. Since it is an individual level economics, it is micro issue.

<em>4.</em><em> Why does the unemployment rate increase during a recession?</em> - As the question is related to a country's unemployment, it deals with the overall economy. So, it is Macroeconomic issue. Unemployment generally covers the whole economy of a country because it suggests how many people are unemployed in an economy.

<em>5.</em> <em>What happens to prices when the government increases the money supply?</em> - Macroeconomic issue as money supply is for the whole economy. Money supply is the total value of a country's economy. Therefore, money supply is a macroeconomic-related topic.

6. <em>Which company’s stocks should your mother buy?</em> - Microeconomics issue as your mother will not purchase all of the company's stock. It is an individual level purchase. It means only one person will purchase the stock, which is a microeconomics issue.

<em>7.</em><em> Should the government pass a jobs bill to stimulate the economy?</em> - Again, If anything is related to the large-scale and whole economy, it will be a macroeconomic issue. Since the government should pass the bill to stimulate economy which is for the country's economy, it is a macroeconomic issue.

<em>8.</em><em> Why does the price of gasoline increase during the summer?</em> - Only the price of gasoline and not other petroleum related products, so it is a microeconomics issue. It is not for the large-scale and industry level issue. Instead it is only a part of a petroleum corporation.

6 0
3 years ago
A company decides to establish an EOQ for an item. The annual demand is 400,000 units, each costing $9, ordering costs are $35 p
Vitek1552 [10]

Answer and Explanation:

a. The computation of the economic order quantity is shown below:

= \sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}

= \sqrt{\frac{2\times \text{400,000}\times \text{\$35}}{\text{\$1.98}}}

= 3,761 units

b. The number of orders would be equal to

= Annual demand ÷ economic order quantity

= 400,000 ÷ 3,761 units

= 106.35 orders

c. The computation of the total cost is shown below:

= Purchase cost + ordering cost + carrying cost

where,  

Purchase cost = Annual consumption × Cost per unit

                       = 400,000 × $9

                       = $2,800,000

Ordering cost = (Annual demand ÷ EOQ) × Cost to place one order

                       = (400,000 ÷ 3,761) × $35

                       = $3,723

Carrying cost = (EOQ ÷ 2) × carrying cost percentage × Cost per unit

                      = (3,761 ÷ 2) × 22% × $9

                      = $3,723

Now put these values to the above formula  

So, the value would equal to

= $2,800,000 + $3,723 + $3,723

= $2,807,446

3 0
4 years ago
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