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VladimirAG [237]
3 years ago
12

Castillo Company has a defined benefit pension plan. At the end of the reporting year, the following data were available: beginn

ing PBO, $75,000; service cost, $18,000; interest cost, $5,000; benefits paid for the year, $9,000; ending PBO, $89,000; the expected return on plan assets, $10,000; and cash deposited with pension trustee, $17,000. There were no other pension-related costs. The journal entry to record the annual pension costs will include a credit to the PBO for:
Business
1 answer:
Luda [366]3 years ago
6 0

Answer:

$23,000

Explanation:

Before recording the journal entry, first we have to determine the pension expense amount which is shown below:

Pension expense = service cost + interest cost - expected return on plan assets

= $18,000 + $5,000 - $10,000

= $13,000

Now the journal entry would be

Pension expense A/c Dr $13,000

Plan asset A/c Dr $10,000

        To PBO A/c $23,000

(Being the annual pension cost is recorded)

All other information which is given is not relevant. Hence, ignored it

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katovenus [111]

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Misleading message or miscommunication can lead to huge problems to any business. When you are working with your client, he will trust your words only if they are accurate otherwise the deal can be lost too.

That is why accuracy is the most important element of any business communication and a significant interval of time must be spent on making the communication accurate in any organization.

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3 0
2 years ago
When Acme Dynamite produces 250 units of output, its variable cost is $2,000, and its fixed cost is $500. It sells each unit of
DaniilM [7]

Answer:

The firm will continue to produce in the short run.

Explanation:

Given the number of units produced by Acme Dynamite = 250 units.

The variable cost of producing the 250 units = $2000

The fixed cost = $500

The selling price = $25 per unit.

The new price after the fall in price = $10

Total revenue from the selling of 250 units = 250 × 10 = $2500

Since the revenue received is covering the variable cost and fixed cost. Thus, the firm will produce or continue to produce in the short run.

7 0
4 years ago
Sheridan Corp. paid a dividend of $2.30 yesterday. The company's dividend is expected to grow at a steady rate of 5 percent for
qaws [65]

Answer:

$24.15

Explanation:

The formula for determining is the present value of a cash flow in perpetuity provided below:

share price=last dividend*(1+terminal dividend growth rate)/(required rate of return-terminal dividend growth rate)

last dividend=$2.30

terminal dividend growth rate=5%

required rate of return=15%

share price=$2.30*(1+5%)/(15%-5%)

share price=$2.415 /10%

share price=$24.15

6 0
3 years ago
a large, family-owned dairy farm operating in the western part of virgina is preparing its annual tax return, and the cfo's obje
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Depreciation expenses is the decrease in the cost of an asset that has appeared over a period of time because of its use. Any expense that is related to a certain asset is included to calculate the depreciation expense.

Depreciation expense: Cost of the asset - residual value/ total units expected to be produced * actual units produced

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7 0
1 year ago
Read 2 more answers
The Global economy a. is trend that is fading quickly b.has only positive effects for United State c. has eliminated some jobs i
rodikova [14]
Its probably C. The other answers are highly unlikely. 
5 0
4 years ago
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