Refer to the information for Rebek Corporation in E19.3. Instructions a. Prepare a pension work sheet: insert
Question:
Refer to the information for Rebek Corporation in E19.3.
Instructions
a. Prepare a pension work sheet: insert the January 1, 2020 balances and show the December 31, 2020 balances.
b. Prepare all journal entries.
c. What is the amount of the plan's surplus/deficit at December 31, 2020?
Data From E19.3.
Rebek Corporation provides the following information about its defined benefit pension plan for the year 2020:
Current service cost.......................................................$ 235,000
Contribution to the plan.....................................................262,500
Past service cost, effective December 31, 2020.................50,000
Actual return on plan assets..............................................160,000
Benefits paid.......................................................................100,000
Net defined benefit liability at January 1, 2020...............400,000
Plan assets at January 1, 2020........................................1,600,000
Defined benefit obligation at January 1, 2020..............2,000,000
Interest/discount rate on the DBO and plan assets...............10%
Rebek follows IFRS.
Instructions
Prepare a continuity schedule for 2020 for the defined benefit obligation.
a. Prepare a continuity schedule for 2020 for the plan assets.
b. Calculate pension expense for the year 2020.
c. Prepare all pension journal entries recorded by Rebek in 2020.
d. What pension amount will appear on Rebek's SFP at December 31, 2020?
Step by Step Answer:
Intermediate Accounting Volume 2
ISBN: 9781119497042
12th Canadian Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy