Our Blog – More About our Services

Monthly Payroll Entries Aggie Co. sells agricultural products. Aggie pays its salespeople a salary plus a commission. The salary is the same for each salesperson, $1,000 per month. The commission varies by length of employment and is a percentage of the company’s...

Computing Defined Benefit Pension Payments Francisco Company has established a defined benefit pension plan for its lone employee, Derrald Ryan. Annual payments under the pension plan are equal to 3% of Derrald’s highest lifetime salary multiplied by the number of...

Amount of Funding and Amortization of Prior Service Cost Da Vinci Inc. has a workforce of 400 employees. A new pension plan is negotiated on January 1, 2008, with the labor union. Based on the provisions of the pension agreement, prior service cost related to the new...

Computation of Actual Return on the Pension Fund Longlee Electrical Company maintains a fund to cover its pension plan. The following data relate to the fund for 2008: January 1 FVPF $875,000   Market related value of the pension fund     (5 year...

Return on the Pension Fund—Expected and Actual Rasband Photography has a pension plan covering its 100 employees. Rasband anticipates a 11% return on its pension fund. The fund trustee furnishes Rasband with the following information relating to the pension fund for...

Computation of Gain or Loss Component The gain or loss component of pension expense consists of (1) a deferral of the difference between actual and expected return on the pension fund and (2) amortization of unrecognized pension gains and losses. Determine the proper...

Computation of Pension Cost and Journal Entries The accountants for Eden Financial Services provide you with the following detailed information at December 31, 2008. Based on these data, prepare the journal entries related to the accrual and funding of pension expense...

Pension Cost Computation Fredco’s defined benefit pension plan had a PBO of $10,000,000 at the beginning of the year. This was based on a 10% discount rate (settlement interest rate). The fair value of pension plan assets at the beginning of the year was $10,400,000....

Preparing a Pension Work Sheet The following information relates to the defined benefit pension plan of Mascare Company. January 1, 2008: PBO                 $9,000...