Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Sandhill Limited sponsors a defined benefit pension plan, and follows ASPE. The corporation's actuary provides the following information about the plan (in thousands of dollars):
Sandhill Limited sponsors a defined benefit pension plan, and follows ASPE. The corporation's actuary provides the following information about the plan (in thousands of dollars): January 1, 2020 December 31, 2020 Vested benefit obligation Defined benefit obligation, accounting basis Plan assets (fair value) Interest/discount rate $1,500 $1,510 2,240 3,044 1,380 2,100 10% 10% Net defined benefit liability/asset ? ? Past service cost, plan amendment, effective December 30, 2020 380 Service cost for the year 2020 320 Contributions (funding) 2020 700 Benefits paid in 2020 120 Provide the entries to recognize the pension expense and funding for the year. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date December 31, 2020 December 31, 2020 Account Titles and Explanation (To record pension expense and remeasurement loss.) (To record contributions to the pension fund.) Debit Credit Prepare a 2020 pension work sheet. (Enter answers in thousands of dollars.) Sandhill Limited Pension Work Sheet - 2020 (ASPE) General Journal Entries Annual Pension Items Expense $ Balance, Jan. 1, 2020 (a) Service cost (b) Net interest/finance cost (c) Asset remeasurement gain (d) Past service cost in year (e) Contributions (f) Benefits paid Expense entry - 2020 $ Contribution entry - 2020 Balance, Dec. 31, 2020 Cash $ $
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