FAR 7 Flashcards

1
Q

SIRAGE

A
Net Periodic Cost:
\+ Service Cost
\+ Interest cost
- Return on Plan Assets
\+ Amort of PSC
\+/- Amort of G/L (subtract gains)
\+/- Amort of existing obligation
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2
Q

Ending FV of plan assets

A

Beg FV of plan assets
+ Contributions
- Benefits Paid to Retirees
+Actual return on Plan Assets

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3
Q

Cost Method JE’s

A

Initial Entry: ($15 per share)
Cash xx
CS xx
APIC xx

Buyback above issue price ($20 per share)
TS xx
Cash xx

Reissue above cost ($22 per share)
Cash      xx     (@$22)
    TS             xx (@$20)
    APIC         xx (@$2)
Reissue below cost ($13 per share)
Cash    xx   (@$13)
APIC    xx   (reverse previously used APIC)
RE        xx   (plug)
     TS          xx  (@$20)
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4
Q

Par Method JE’s

A
Original issue: ($15 per share, $10 par)
Cash      xx   ($15)
    CS            xx  ($10 par)
    APIC         xx  ($5 plug)
Buyback above issue price ($20 per share)
TS        xx    ($10 par)
APIC    xx    ($5)
RE        xx    (plug)
   Cash       xx  ($20)
Buyback below issue price ($12 per share)
TS               xx ($10 par)
APIC           xx ($5)
   Cash             xx   ($12)
   APIC T/S       xx   (plug)
Reissue above cost ($22)   (same JE's for reissue below)
Cash   xx   ($22)
   CS         xx   ($10)
   APIC      xx   ($12 plug)
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