ACC 537 Week 5 Textbook Problem P20 1 Cunningham Company
3 . On July 1 , 9 % bonds of Sampson , Inc . were purchased . These bonds with a par value of $ 200,000 were purchased at 100 plus accrued interest . Interest dates are June 1 and December 1 .
4 . On September 1 , bonds with a par value of $ 60,000 , purchased on February 1 , are sold at 99 plus accrued interest .
5 . On October 1 , semiannual interest is received . 6 . On December 1 , semiannual interest is received .
7 . On December 31 , the fair value of the bonds purchased February 1 and July 1 are 95 and 93 , respectively .
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ACC 537 Week 5 Textbook Problem P20 1 Cunningham Company
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P20-1 . On Jan 1 , 2014cunningham / Harrington company has the following defined benefit pension plan balances . Projected benefit obligation 4,500,000 Fair value of plan assets 4,200,000 The interest ( settlement ) rate applicable to the plan is 10 %. On Jan 1 , 2015 the company amends its pension agreement so that prior service costs of 500,00 are created . other data related to the pension plan are as follows . Year 2014 Service 150,000 Prior service cost amortization 0 Contribution ( funding ) to the plan 240,000 benefits paid 200,000 actual return on plan assets 252,000 expected rate of return on assets 6 % Year 2015 Service cost 180,000 prior service cost amortization 90,000 contributions ( funding ) ti the plan 285,000 benefits paid