Lemke SA sponsors a defined benefit pension plan for its employees. The following data relate to the
Question:
Lemke SA sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2022 and 2023.
Instructions
a. Prepare a pension worksheet for both 2022 and 2023.
b. Prepare the journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31 of each year.
c. For 2023, indicate the pension amounts reported in the financial statements.
2022 2023 Defined benefit obligation, January 1 R600,000 Plan assets (fair value), January 1 410,000 Pension asset/liability, January 1 190,000 Cr. Service cost R 40,000 59,000 Discount (interest) rate 10% 10% Actual return on plan assets 36,000 61,000 Annual contributions 97,000 81,000 Benefits paid retirees Increase in defined benefit obligation due to changes in actuarial assumptions Accumulated benefit obligation at December 31,500 54,000 87,000 -0- 31 721,800 789,000 Vested benefit obligation at December 31 464,000
Step by Step Answer:
Intermediate Accounting IFRS
ISBN: 9781119607519
4th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Related Video
A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
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