Posted: 07 Feb 2011 at 14:22 | IP Logged
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How come “benefits paid” and “actual return on plan assets” are not
part of the funded status reconciliation even though they are parts of the projected benefit
obligation (PBO) and the Fair value of the plan assets. On
pg. F6-17, at the top of the page it is written that the company paid $350,000
of benefits in year 2 and yet there is no journal entry for benefits paid on
this page? On
pg. F6-34, under “Service Contracts”, why is the total unearned service
contract revenue at December 31, Year 1 include the amount of contracts that
expired during Year 1? Shouldn’t the total unearned revenue just be year 2 -
$270K + year 3 - $420K = $690K?
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