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3 years ago

Warrick Boards calculated pension expense for its underfunded pension plan as follows:

Business

1 answer:

faltersainse [42]3 years ago

7 0

Answer:

(i) PBO - Projected Benefit Obligation.

(ii) Pension Liability.

(iii) OCI - Other Comprehensive Income.

(iv) Retained Earnings.

Explanation:

(i) Service Cost and Interest Cost would result in increase of Projected Benefit Obligation (PBO), So;

PBO = Service Cost + Interest Cost

PBO = $354,000,000 + $215,000,000

PBO = $569,000,000

(ii) Plan Assets are increase by Expected Return of $154,000,000, and this amount will be deducted from the PBO because this has already been included in the Balance Sheet under Assets;

Pension Liability = PBO - Plan Assets

Pension Liability = $569,000,000 - $154,000,000

Pension Liability = $415,000,000

(iii) Other Comprehensive Income - OCI is the amortization of the Prior Service Cost that will reduce the OCI account during the period of time along with the loss on OCI which will also be accounted for, as follows;

OCI = Prior Service Cost + Net Loss

OCI = $21,000,000 + $4,000,000

OCI = $25,000,000

(iv) Retained Earnings will be decreased as pension will be paid from the retained earnings account and can be calculated as follows;

Retained Earnings = - Pension Expense + Prior Service Cost + Net Gain on plan assets + Net Loss on OCI

Retained Earnings = - $440,000,000 + $21,000,000 + $11,000,000 + $4,000,000

Retained Earnings = - $404,000,000

Hence Share holders' Equity will be reduced by $404,000,000.

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George murdock discovered that only a few jobs were consistently male-dominated in his study of 324 societies around the world.

Lana71 [14]

H<span>e considered all of the following as male-dominated jobs except for taking care of cattle.
This job is either balanced between men and women, or is female-dominated completely, according to George Murdock. Based on his study, he concluded that men usually dominate in jobs such as pursuing sea mammals, hunting, and making weapons, whereas that is not the case with taking care of cattle.
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6 0

3 years ago

Western Electric has 31,500 shares of common stock outstanding at a price per share of $78 and a rate of return of 13.05 percent

S_A_V [24]

Answer:

WACC = 11.13%

Explanation:

total market value common stocks = 31,500 x $78 = $2,457,000

total market value of preferred stock = 7,250 x $94.50 = $685,125

total market value of debt = $401,000 x 1.105 = $443,105

total = $3,575,230

Rcs = 13.05%

Rps = $7.70 / $94.50 = 8.15%

Rd = 8.05%

WACC = ($2,457,000/$3,575,230 x 13.05%) + ($685,125/$3,575,230 x 8.15%) + ($443,105/$3,575,230 x 8.05% x 60%) = 8.968% + 1.562% + 0.6% = 11.13%

8 0

3 years ago

Assume that Simple Co. had credit sales of $250,000 and cost of goods sold of $150,000 for the period. It estimates that 1 perce

Dahasolnce [82]

Answer:

A. Debit: Bad Debt Expense 2,500

Credit: Allowance for Doubtful Accounts 2,500

250,000 x .01 = 2,500

B. Debit: Bad Debt Expense 2,750

Credit: Allowance for Doubtful Accounts 2,750

3,000 - 250 = 2,750

8 0

3 years ago

Rank the following types of businesses in order of risk to you, with the highest being number 1: partnership, limited partnershi

kompoz [17]

Answer:

Sole Proprietorship
Partnership
Limited Partnership
Limited Liability Company

Explanation:

Sole Proprietorship is the type of business in which the liability is not limited. Due to this issue, the owner is solely responsible to pay off the debts of company from his personal owned assets if the business goes bankrupt.

Partnership is just like sole proprietorship but here the partners are the only responsible persons to payoff the debt of the company because the liability is limitless. The burden of the company debts is equally shared among the partners.

Limited Partnership is less risky because the liability is limited and only the amount invested in the business is subjected to the payment of borrowings from the lenders. The limited partner is responsible for his actions which means if his misdeed resulted in fine then it would be paid from his share first and then the other partners are equally liable to for compensation if their is still any amount left.

In the case of Limited liability company, the liability is limited and the burden of the payment of the liability falls on the company. So the investor is not subjected to pay the debts of the company because the limited liability company is a separate entity and is solely liable to pay for its debts.

8 0

3 years ago

Bernard is a trainee accountant. His manager asked him to record a loss on the sale of machinery in the business’s temporary acc

Agata [3.3K]

Answer:

Gain and loss accounts

Explanation:

Gain and loss accounts are a form of temporary accounts that are utilized to gather combined sales and purchases that has an effect on the profit or loss of business activities over a given period, which is typically in a year. For example, the loss on property sold account.

Hence, in this situation, the correct answer to the question is known to be a GAIN and LOSS ACCOUNT.

6 0

3 years ago