Question
Question 1 (30 marks) Elijah Corp. sponsors a defined-benefit pension plan for its employees. Presented below are the balances related to this plan on 1
Question 1 (30 marks)
Elijah Corp. sponsors a defined-benefit pension plan for its employees. Presented below are the balances related to this plan on 1 January 2019. Plan assets (fair value) $480,000 Defined benefit obligation 630,000 Accumulated other comprehensive income 0 As a result of the operation of the plan during 2019, the actuary provided the following additional data at December 31, 2019. Service cost for 2019 $75,000 Actual return on plan assets 45,000 Past service cost, effective Jan. 1, 2019 90,000 Annual contribution to the plan 110,000 Benefits paid to retirees 75,000 Discount rate 8%
Required: (a) Using the above information for Elijah Corp., prepare the pension work sheet for 2019. (26 marks)
(b) Prepare the journal entry to reflect the accounting for the company's pension plan for the year ended 31 December 2019. (4 marks)
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