Rebek Corporation provides the following information about its defined benefit pension plan for the year 2011: Service

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Rebek Corporation provides the following information about its defined benefit pension plan for the year 2011:
Service cost ....................... $ 225,000
Contribution to the plan ...................262,500
Past service cost amortization................. 25,000
Actual and expected return on plan assets ...........160,000
Benefits paid......................100,000
Accrued pension liability at Jan. 1, 2011 ........... 25,000
Plan assets at Jan. 1, 2011 .................. 1,600,000
Accrued benefit obligation at Jan. 1, 2011 ........... 2,000,000
Unrecognized past service cost balance at Jan. 1, 2011 .......375,000
Settlement rate ....................... 10%
Rebek uses the deferral and amortization approach to account for its defined benefit plan.
Instructions
(a) Prepare a continuity schedule for 2011 for the accrued benefit obligation.
(b) Prepare a continuity schedule for 2011 for the plan assets.
(c) Calculate pension expense for the year 2011.
(d) Prepare all pension journal entries recorded by Rebek in 2011.
(e) What pension amount will appear on Rebek’s balance sheet at December 31, 2011? Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...
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Related Book For  book-img-for-question

Intermediate Accounting

ISBN: 978-0470161012

9th Canadian Edition, Volume 2

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.

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