EXERCISE 6 The memorandum records of Red Ribbon Trading Corporation on January 1, 2018 show the following: Defined Benet Obligation P3,000,000 Fair Value of , , The following information for 2016 is also provided: 2018 service cost P1,000,000 Discount rate 10% Actual return on plan assets 640,000 Benefits paid 600,000 Contributions made 2,000,000 Past service cost 800,000 The benefit obligation as measured by the actuary at December 31, 2016 has a present value of P11,050,000. EXERCISE 6 Requirement: 1. Journal Entries to record the funding and the retirement liability/asset 2. Balance of the defined benefit asset or liability as of December 31, 2018 3. Reconciliation of the balance determined in C. EXERCISE 7 Midnight Company provides retirement benefits to employees through defined benefit plan. The trustee administering the plan and your analysis of the plan provided the following information for the year ended December 31, Plan Assets, at fairvalue, 12/31/2015 1,250,000 Benefit obligation, 12/31/2015 1,350,000 2016 Contribution 2,360,000 2016 Service cost 2,000,000 Discount rate 9% Actuarial loss on defined benefit obligation 50,000 Actuarial loss on plan assets 2,000 Past service cost because of plan amendment 300,000 Benefits paid 120,000 EXERCISE 7 Requirement: 1. Journal Entries to record the funding and the retirement liability/asset 2. Balance of the defined benefit asset or liability as of December 31; 2018