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?

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Related Book For  book-img-for-question

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

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