Refer to the information in E19-7 about Berstler Limited's defined benefit pension plan.

In E19-7

Berstler Limited sponsors a defined benefit pension plan, and follows ASPE. The corporation's actuary provides the following information about the plan (in thousands of dollars):

Instructions
(a) Prepare a 2017 pension work sheet with supplementary schedules of calculations.
(b) Prepare the journal entries at December 31, 2017 to record pension expense and the funding contributions.
(c) Explain what the December 31, 2017 balance in the net defined benefit liability/asset account represents.

Transcribed Image Text:

Vested benefit obligation Defined benefit obligation, accounting basis Plan assets (fair value) Interest/discount rate Net defined benefit liability/asset Past service cost, plan amendment, effective January 1, 2017 $1,200 2,240 1,360 10% December 31, 2017 $1,520 3,004 2,096 10% December 30, 2017 Service cost for the year 2017 Contributions (funding) 2017 Benefits paid in 2017 380 320 640 160