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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