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  • Cost On January 1 2016 Baznik Company Adopted A Defined

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    Taimur Technologist
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    Baznik Company adopted a defined benefit pension plan on January 1, 2016. The plan included $1,200,000 in retroactive benefits resulting in prior service costs. Baznik amortizes prior service costs using the years-of-future-service method over the expected future service periods of six employees. Baznik contributed $850,000 and $830,000 to the pension fund in 2016 and 2017, respectively. Journal entries are required to record pension expense and cash contributions for both years.

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    Cost on January 1 2016 Baznik Company Adopted a Defined

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    Baznik Company adopted a defined benefit pension plan on January 1, 2016. The plan included $1,200,000 in retroactive benefits resulting in prior service costs. Baznik amortizes prior service costs using the years-of-future-service method over the expected future service periods of six employees. Baznik contributed $850,000 and $830,000 to the pension fund in 2016 and 2017, respectively. Journal entries are required to record pension expense and cash contributions for both years.

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    © All Rights Reserved
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    23 views1 page

    Cost On January 1 2016 Baznik Company Adopted A Defined

    Uploaded by

    Taimur Technologist
    Baznik Company adopted a defined benefit pension plan on January 1, 2016. The plan included $1,200,000 in retroactive benefits resulting in prior service costs. Baznik amortizes prior service costs using the years-of-future-service method over the expected future service periods of six employees. Baznik contributed $850,000 and $830,000 to the pension fund in 2016 and 2017, respectively. Journal entries are required to record pension expense and cash contributions for both years.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    Cost On January 1 2016 Baznik Company adopted a

    defined #2601
    Cost On January 1, 2016, Baznik Company adopted a defined benefit pension plan. At that
    time, Baznik awarded retroactive benefits to certain employees. These retroactive benefits
    resulted in a prior service cost of $1,200,000 on that date (which it did not fund). Baznik has six
    participating employees who are expected to receive the retroactive benefits. Following is a
    schedule that identifies the participating employees and their expected years of future service
    as of January' 1, 2016:Baznik decided to amortize the prior service cost to pension expense
    using the years-of-future-service method. The following are the amounts of the components of
    Baznik’s pension expense, in addition to the amortization of the prior service cost for 2016 and
    2017:Baznik contributed $850,000 and $830,000 to the pension fund at the end of 2016 and
    2017, respectively.Required:1. Prepare a set of schedules for Baznik to determine (a) The
    amortization fraction for each year(b) The amortization of the prior service cost.2. Prepare all
    the journal entries related to Baznik’s pension plan for 2016 and 2017.View Solution:
    Cost On January 1 2016 Baznik Company adopted a defined

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