Comprehensive – The TAN Company has a defined benefit pension plan for its employees. The plan has been in existence for several years. During 2006, for the first time, the company experienced a difference between its expected and actual projected benefit obligation. This resulted in a cumulative unrecognized loss of $29,000 at the beginning of 2007, which did not change during 2007. The company amortizes any excess unrecognized loss by the straight-line method over the average remaining service life of its active participating employees. It has developed the following schedule concerning these 40 employees:

Employee	Expected Years of	Employee	Expected Years of
Numbers	Future Service*	Numbers	Future Service*
1–5	3	21–25	15
6–10	6	26–30	18
11–15	9	31–35	21
16–20	12	36–40	24

*Per employee

The company makes its contribution to the pension plan at the end of each year. However, it has not always funded the entire pension expense in a given year. As a result, it had an accrued pension cost liability of $36,000 on December 31, 2006.

Furthermore, the company’s accumulated benefit obligation exceeded the fair value of the plan assets at the end of 2006, so that the company also had an additional pension liability (and excess of additional pension liability over unrecognized prior service cost) of $2,300 on December 31, 2006.

In addition to the preceding information, the following set of facts for 2007 and 2008 has been assembled, based on information provided by the company’s actuary and funding agency, and obtained from its accounting records:

2007	2008
Plan assets, fair value (12/31)	$620,500	$859,550
Cumulative unrecognized net loss (1/1)	29,000	29,000
Expected (and actual) return on plan assets	40,500	62,050
Company contribution to pension plan (12/31)	175,000	177,000
Projected benefit obligation (1/1)	470,000	686,000
Discount rate	10%	10%
Accumulated benefit obligation (12/31)	660,000	903,000
Service cost	169,000	175,000
Plan assets, fair value (1/1)	405,000	620,500

Required

1. Calculate the average remaining service life of the TAN Company’s employees. Compute to one decimal place.

2. Prepare a schedule to compute the net gain or loss component of pension expense for 2007 and 2008. For simplicity, assume the average remaining life calculated in Requirement 1 is applicable to both years.

3. Prepare a schedule to compute the pension expense for 2007 and 2008.

4. Prepare a schedule to determine the adjustment (if any) to additional pension liability required at the end of 2007 and 2008.

5. Prepare all the December 31, 2007 and December 31, 2008 journal entries related to the pension plan.

Net Gain or Loss – For several years, Kent Company has had a defined benefit contribution plan for its employees. During those years the company experienced differences between its expected and actual projected benefit obligation. These differences resulted in a cumulative net gain or loss at the beginning of each subsequent year. The following schedule summarizes the amounts related to the preceding information for the years 2007 through 2009:

Year	Cumulative Unrecognized Net Loss (Gain)a
2007	$25,000
2008	26,000
2009	36,500

a. At beginning of year

The company’s actuary and funding agency have also provided the following information about the company’s actual projected benefit obligation and fair value of plan assets at the beginning of each year:

Year	Projected Benefit Obligation	Plan Assets
2007	$220,000	$200,000
2008	275,000	270,000
2009	320,000	325,000

The company amortizes any excess unrecognized gain or loss by the straight-line method over the average remaining service life of its active participating employees. Because of a consistent pattern of employee hirings and retirements, this average service life has remained at 20 years for 2007 through 2009.

Required

Prepare a schedule to compute the amount of the net gain or loss to include in the Kent Company’s pension expense for 2007 through 2009. Indicate whether the gain or loss is added to or subtracted from the pension expense.

Pension Expense Different Than Funding – On January 1, 2007 the Parkway Company adopted a defined benefit pension plan. At that time, the company awarded retroactive benefits to its employees, resulting in an unrecognized prior service cost of $2,180,000 on that date. The company decided to amortize these costs by the straight-line method over the 16-year average remaining service life of its active participating employees. The company’s actuary and funding agency have also provided the following additional information for 2007 and 2008:

2007	2008
Service cost	$340,000	$348,000
Projected benefit obligation (1/1)	2,180,000*	$2,738,000
Plan assets (1/1)	-0-	670,000
Discount rate	10%	10%
Expected long-term (and actual) rate of return on plan assets	—	9%

*Due to the unrecognized prior service cost

The company contributed $670,000 and $700,000 to the pension fund at the end of 2007 and 2008, respectively. There are no other components of Parkway Company’s pension expense; ignore any additional pension liability.

Required

1. Compute the amount of Parkway Company’s pension expense for 2007 and 2008.

2. Prepare the December 31 journal entry to record the pension expense for 2007 and 2008.

3. What is the total prepaid/accrued pension cost at the end of 2008? Is it an asset or a liability?

MATH 2415 -Quiz 7 -Smalley
Sections 15.1 -15.4
-Quiz 7 -Smalley
Sections 15.1 -15.4

Evaluate the line integral of f(x,y) along the curve C.

1) f(x, y) =
x2 +
y2, C: y =
4x + 2, 0 = x = 3
A) 79 17 B) 543 17 C) 237 D) 237 17

Evaluate the line integral along the curve C.

2) +
(xz +
y2) ds, C is the curve r(t) =
(-7 -2t)i +
tj -2tk , 0 = t = 1

C
A) 26
3
B) 26 C) 16
3
D) -16

Find the work done by F over the curve in the direction of increasing t.

i need to solve this project

Smithfield Corportation owns and operates three sawmills that make lumber for building homes. The operations consist of cutting logs in the forest, hauling them to the various sawmills, sawing the lumber, and shipping it to building supply warehouses throughout the western part of the United States. To haul the logs, Smithfield has several trucks. Relevant data pertaining to one truck are:

a. Date of purchase, July 1, 2001.

b. Cost:

Truck.	$60,000
Trailer	20,000
Paint job (to match company colors)	1,500
Sales tax..	3,500

c. Estimated useful life of the truck, 150,000 miles.

d. Estimated salvage value, zero.

e. 2002 expenditures on truck:

(1) Spent $5,000 on tires, oil changes, greasing, and other miscellaneous items.

(2) Spent $22,000 to overhaul the engine and replace the transmission on January 1,

2002. This expenditure increased the life of the truck by 135,000 miles.

Record journal entries to account for:

1. The purchase of the truck.

2. The 2001 depreciation expense using units-of-production depreciation and assuming the truck was driven 45,000 miles.

3. The expenditures relating to the truck during 2002.

4. The 2002 depreciation expense using the units-of-production method and assuming the truck was driven 60,000 miles.

On January 1, 2012, Pierre Company had Accounts Receivable $139,000, Notes Receivable $25,000, and Allowance for Doubtful Accounts $13,200. The note receivable is from Stacy Richter Company. It is a 4-month, 12% note dated December 31, 2011. Pierre Company prepares financial statements annually. During the year, the following selected transactions occurred.

Jan.	5	Sold $20,000 of merchandise to Bernard Company, terms n/15.
	20	Accepted Bernard Company’s $20,000, 3-month, 9% note for balance due.
Feb.	18	Sold $8,000 of merchandise to LaBamba Company and accepted LaBamba’s $8,000,
		6-month, 9% note for the amount due.
Apr.	20	Collected Bernard Company note in full.
	30	Received payment in full from Stacy Richter Company on the amount due.
May	25	Accepted Cloppy Inc.’s $4,000, 3-month, 7% note in settlement of a past-due balance on account.
Aug.	18	Received payment in full from LaBamba Company on note due.
	25	The Cloppy Inc. note was dishonored. Cloppy Inc. is not bankrupt; future payment is anticipated.
Sept.	1	Sold $12,000 of merchandise to Bessie Lou Company and accepted a $12,000, 6-month,
		10% note for the amount due.

Instructions

Journalize the transactions.

Constructing a Downtown Parking Lot in Draper

The town of Draper, with a population of 20,000, sits adjacent to
State University, which has an enrollment of 27,000 students. Downtown
Draper merchants have long complained about the lack of parking
available to their customers. This is one primary reason for the steady
migration of downtown businesses to a mall several miles outside town.
The local chamber of commerce has finally convinced the town council to
consider the construction of a new multilevel indoor parking facility
downtown. Kelly Mattingly, the town’s public works director, has
developed plans for a facility that would cost $4.5 million to
construct. To pay for the project, the town would sell municipal bonds
with a duration of 30 years at 8% interest. Kelly also estimates that
five employees would be required to operate the lot on a daily basis, at
a total annual cost of $140,000. It is estimated that each car that
enters the lot would park for an average of 2.5 hours and pay an average
fee of $3.20. Further, it is estimated that each car that parks in the
lot would(on average) cost the town $0.60 in annual maintenance for
cleaning and repairs to the facility. Most of the downtown businesses
(which include a number of restaurants) are open 7 days per week.

A. Using break-even analysis, determine the number of cars that would
have to park in the lot on an annual basis to pay off the project in
the 30-year time frame.

B. From the results in (A), determine the approximate number of cars
that would have to park in the lot on a daily basis. Does this seem to
be a reasonable number to achieve, given the size of the town and
college population?

Learning Objective 3, 4: Recording transactions and computing net income) Refer to YUM! Brands’ financial statements in Appendix A at the end of the book. Assume that YUM completed the following selected transactions during 2006.

a. Made company sales (revenue) and collected cash of $8,365 million.

b. Earned franchise and license fee revenue on account, $1,196 million.

c. Purchased inventories, paying cash of $2,557 million.

d. Incurred food and paper expense of $2,549 million. Credit the Inventories account.

e. Paid operating and other expenses of $6,188 million.

f. Collected cash on accounts and notes receivable, $1,212 million.

g. Paid cash for other assets, $671 million.

Required

1. Set up T-accounts for: Cash (debit balance of $158 million); Accounts and Notes Receivable (debit balance of $236 million); Inventories (debit balance of $85 million); Other Assets ($0 balance); Company Sales (Revenue: $0 balance); Franchise and License Fee Revenue ($0 balance); Food and Paper Expense ($0 balance); Operating and Other Expenses ($0 balance).

2. Journalize YUM’s transactions a–g. Explanations are not required.

3. Post to the T-accounts, and compute the balance for each account. Key postings by transaction letters a–g.

4. For each of the following accounts, compare your computed balance to YUM’s actual balance as shown on YUM’s 2006 income statement or balance sheet in Appendix A. Your amounts should agree to the actual figures.

a. Cash

b. Accounts and Notes Receivable

c. Inventories

d. Company Sales (Revenue)

e. Franchise and License Fee Revenue

f. Food and Paper Expense5. Use the relevant accounts from requirement 4 to prepare a summary income statement for YUM! Brands, Inc.,for 2006. Compare the net income you computed to YUM’s actual net income. The 2 amounts should be equal.

Please answer these problems