Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Answer As soon as possible P20.8B (LO 1,2,3,4,5) (Comprehensive 2-Year Worksheet) Ficus Company sponsors a defined benefit pension plan for its employees. The following data

image text in transcribed

Answer As soon as possible

P20.8B (LO 1,2,3,4,5) (Comprehensive 2-Year Worksheet) Ficus Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2020 and 2021: 2021 Projected benefit obligation, January 1 Plan assets (fair value and market-related value), January 1 Pension asset/liability, January 1 Prior service cost, January 1 Service cost Settlement rate Expected rate of return Actual return on plan assets Amortization of prior service cost Annual contributions Benefits paid retirees Increase in projected benefit obligation due to changes in actuarial assumptions Accumulated benefit obligation at December 31 Average service life of all employees Vested benefit obligation at December 31 2020 $600,000 440,000 160,000 Cr. 400,000 72,000 10% 10% 66,000 80,000 $ 95,000 10% 10% 64,000 125,000 102,000 63,000 87,000 59,000 143,000 459,800 547,000 10 years 292,000 Instructions (a) Prepare a pension worksheet presenting both years 2020 and 2021 and accompanying computations and amortization of the loss (2021) using the corridor approach. (b) Prepare the journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31 of each year. P20.8B (LO 1,2,3,4,5) (Comprehensive 2-Year Worksheet) Ficus Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2020 and 2021: 2021 Projected benefit obligation, January 1 Plan assets (fair value and market-related value), January 1 Pension asset/liability, January 1 Prior service cost, January 1 Service cost Settlement rate Expected rate of return Actual return on plan assets Amortization of prior service cost Annual contributions Benefits paid retirees Increase in projected benefit obligation due to changes in actuarial assumptions Accumulated benefit obligation at December 31 Average service life of all employees Vested benefit obligation at December 31 2020 $600,000 440,000 160,000 Cr. 400,000 72,000 10% 10% 66,000 80,000 $ 95,000 10% 10% 64,000 125,000 102,000 63,000 87,000 59,000 143,000 459,800 547,000 10 years 292,000 Instructions (a) Prepare a pension worksheet presenting both years 2020 and 2021 and accompanying computations and amortization of the loss (2021) using the corridor approach. (b) Prepare the journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31 of each year

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

Draw an electron-dot structure for carbon monoxide, CO.

Answered: 1 week ago

Question

Identify the factors affecting retirement planning.

Answered: 1 week ago