Ceiling-discussion UE Manila PDF

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Use the following information for the next four (4) questions:You are auditing Surplus Corporation post-retirement benefits accounts. The following selected accounts were lifted from the 20x4 unadjusted trial balance. No adjusting entry had been made yet at year end in relation the post- retirement ...

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Use the following information for the next four (4) questions: You are auditing Surplus Corporation post-retirement benefits accounts. The following selected accounts were lifted from the 20x4 unadjusted trial balance. No adjusting entry had been made yet at year end in relation the postretirement benefits related accounts. Prepaid Pension Expense, January 1, 20x4 P220,000 Pension expense for 20x4, amount contributed to the plan 750,000 Additional information: The memorandum account balances and other off-books transactions are as follows: Plan assets at fair market value, January 1, 20x4 P3,200,000 Projected benefit obligation at present value, January 1, 20x4 2,980,000 Payments to retirees at scheduled retirement in 20x4 560,000 Current service cost 480,000 Settlement rate 8% Actuarial loss on plan asset 80,000 Actuarial loss on Projected benefit obligation 30,000 There had been no remeasurement (actuarial) gain or loss from plan asset and Projected retirement obligation in the prior years. The asset ceiling at the beginning and at the end of the year was P250,000 and P350,000, respectively. 8.

9.

What is the total pension cost/defined benefit cost in 20x4? A. P620,000 B. P462,400 C. P157,600

D. P350,000

How much from the defined benefit cost is recognized in the 20x4 profit or loss? B. P462,400 C. P157,600 D. P350,000 A. P620,000

10. How much from the defined benefit cost is recognized in the 20x4 other comprehensive income or loss? C. P157,600 D. P350,000 A. P620,000 B. P462,400 11. What is the prepaid pension expense as of December 31, 20x4? A. P620,000 B. P462,400 C. P157,600

D. P350,000...