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shutvik [7]
2 years ago
7

On January 1, 2021, McGee Co. had the following balances: Projected benefit obligation $7,800,000 Fair value of plan assets 7,80

0,000 Other data related to the pension plan for 2021: Service cost 315,000 Contributions to the plan 459,000 Benefits paid 450,000 Actual return on plan assets 468,000 Settlement rate 9% Expected rate of return 6% Instructions (a) Determine the projected benefit obligation at December 31, 2021. There are no net gains or losses. (b) Determine the fair value of plan assets at December 31, 2021. (c) Calculate pension expense for 2021. (d) Prepare the journal entry to record pension expense and the contributions for 2021.
Business
1 answer:
olganol [36]2 years ago
3 0

Answer and Explanation:

(a)Projected benefit obligation,

January 1 $7,800,000

Service cost 315,000

Interest cost (9% × $7,800,000) 702,000

Benefits paid(450,000)

Projected benefit obligation, December 31 $8,367,000

b)Fair value of plan assets, January 1 $7,800,000

Actual return 468,000

Contributions 459,000

Benefits paid(450,000)

Fair value of plan assets, December 31 $8,277,000

(c)Service cost $315,000

Interest cost (9% × $7,800,000) 702,000

Actual (and expected) return on plan assets(468,000)

Pension expense $549,000

(d)

Dr Pension Expense 549,000

Cr Cash 549,000

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Explanation:

Using last months data adjust the goals so that they better meet the standards and feasibility aspect for the campaign period. This way the campaign will stand a much better chance of actually accomplishing the goals that have been set forth. By presenting this new plan to the CEO it shows that you have come up with a solution to the problem and can be easily implemented in order to get back on track as fast as possible, which is what a CEO wants to hear.

5 0
2 years ago
Bramble Corp. reported the following year-end information: beginning work in process inventory, $270000; cost of goods manufactu
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Answer: $844,000

Explanation:

Given that,

Beginning work in process inventory = $270,000

Cost of goods manufactured = $866,000

Beginning finished goods inventory = $332,000

Ending work in process inventory = $310,000

Ending finished goods inventory = $354,000

Cost of goods sold = Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory

Cost of goods sold = $332,000 + $866,000 - $354,000

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7 0
3 years ago
Dry cleaning of clothing produces air pollutants. Therefore, in the market for dry cleaning services, the equilibrium price:
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Answer:

The correct answer is (D)

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3 years ago
Selling price per unit is $68
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Answer:

Income statement

Sales Revenue                                                                     $  612,000

Variable Overhead cost                                                      $  (315,000)

Fixed manufacturing overhead                                            <u>$ ( 126,000)</u>

Gross Profit                                                                            $   171,000      

Variable Operating expenses                                              $ (    27,000)

Fixed Operating expenses                                                    <u>$(    93,000)</u>

Net Income                                                                              $    51,000

Explanation:

Income statement

Sales Revenue ( 9,000 units * $ 68)                                    $  612,000

Variable Overhead cost ( 9,000 * $ 35 )                             $  (315,000)

Fixed manufacturing overhead                                            <u>$ ( 126,000)</u>

Gross Profit                                                                            $   171,000      

Variable Operating expenses ( $ 3 * 9000 units)               $ (    27,000)

Fixed Operating expenses                                                    <u>$(    93,000)</u>

Net Income                                                                              $    51,000

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