Professional Documents
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EMPLOYEE BENEFITS
PROBLEMS
(b) Employee Benefit Expense for Sick Leave and Vacation Leave
Sick Leave 5 x P450 P2,250
10 x 420 4,200
2 x 400 800
2 x 380 760 P8,010
Vacation Leave 12 x P450 P5,400
12 x 420 5,040
2 x 400 800
5 x 380 1,900 13,140
Total P21,150
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Chapter 6 – Employee Benefits
(e). Reconciliation
Debit:
Plan Assets 8,500,000 + 780,000 + 1,500,000 P10,780,000
Unrecognized past service cost 900,000 - 75,000 825,000
P11,605,000
Credit:
ABO = 8,200,000 + 1,200,000 + 820,000 10,220,000
Unrecognized actuarial gain 780,000 - 765,000 15,000
10,235,000
Net Debit - Prepaid Retirement Benefit Cost
12/31 P1,370,000
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Chapter 6 – Employee Benefits
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Chapter 6 – Employee Benefits
Reconciliation:
Debit
Plan assets P10,040,00
0
Unamortized actuarial loss 1,000,000
Unamortized past service cost 640,000
Total debit P11,680,00
0
Credit
Accrued Benefit Obligation 10,300,000
Net debit – Prepaid P1,380,000
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Chapter 6 – Employee Benefits
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