Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 2: Pension plan calculations and journal entries (15 marks) On January 1, 2022, Peach Ltd. reported the following balances relating to their defined
Question 2: Pension plan calculations and journal entries (15 marks) On January 1, 2022, Peach Ltd. reported the following balances relating to their defined benefit pension plan: Defined benefit obligation... Fair value of plan assets. Other data related to the pension plan for 2020 are: Current service cost....... Contributions to the plan Benefits paid Actual return on plan assets. Interest (discount) rate Instructions $ 3,200,000 3,200,000 140,000 204,000 220,000 192,000 9% a) Calculate the defined benefit obligation at December 31, 2022.(4 marks) b) Calculate the fair value of plan assets at December 31, 2022. (4 marks) c) Calculate pension expense for 2022. (3 marks) d) Prepare the journal entries to record the pension expense and the contributions for 2022. (4 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started