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Goodday Ltd. has a defined benefit pension plan and a December 31 year-end. The following information relates to the plan: $5,255,000 4,730,000 525,000 cr. 70,800
Goodday Ltd. has a defined benefit pension plan and a December 31 year-end. The following information relates to the plan: $5,255,000 4,730,000 525,000 cr. 70,800 dr. 8,625,400 cr. 4,216,000 cr. 603, 100 Balances: Defined benefit obligation, end of 20x7 Pension plan assets, fair value, end of 20x7 SFP net defined benefit liability, end of 20x7 SFP accumulated OCI, pension, end of 20x7 Retained earnings, end of 20x7 20x8 earnings, prior to any pension expense Current service cost for 20x8, measured using the projected unit credit method New past service cost granted in 20x8, negative because benefits were reduced and the liability has declined made to the pension plan assets paid at end of 20x8 Actuarial gain in 20x8, negative because caused by higher anticipated future mortality rates and the liability has declined Actual earnings in the fund, reported by the pension fund trustee, including interest, dividends, and change in fair value Benefits paid to pensioners from Pension fund assets paid at end of 20x8 Interest rate on long-term corporate bonds, end of 20x8 Contributions ((350,000 427,000 (184, 000) 148,880 83,700 5% Required: 1. Calculate service cost and payment to the pension fund trustee. Service cost Payment to the pension fund trustee 2. Prepare the entry to record service cost and record the payment to the pension fund trustee. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list 1 Record the service cost. 2 Record the contribution to the pension fund trustee. Credit
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