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6% Year 2015 Service cost 180,000 prior service cost amortization
90,000 contributions (funding) ti the plan 285,000 benefits paid
280,000 actual return on plan assets 260,000 expected rate of return
on assets 8% A. prepare a pension worksheet for the pension plan for
2014 and 2015 B. for 2015 prepare the journal entry to record pension
related amounts.
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ACC 537 Week 6 CA22 4 Analysis of Various Accounting
Changes and Errors (Solution and Presentation)
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This Tutorial contains both Solution and Presentation
CA22-4 (Analysis of Various Accounting Changes and Errors)
Katherine Irving, controller of Lotan Corp., is aware of a
pronouncement on accounting changes. After reading the
pronouncement, she is confused about what action should be taken on
the following items related to Lotan Corp. for the year 2014.
1. In 2014, Lotan decided to change its policy on accounting for
certain marketing costs. Previously, the company had chosen to defer
and amortize all marketing costs over at least 5 years because Lotan
believed that a return on these expenditures did not occur immediately.