Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tallinn Corporation offers its employees a defined benefit plan covering substantially all of its employees. The attached information is available from the company's accounting records,

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Tallinn Corporation offers its employees a defined benefit plan covering substantially all of its employees. The attached information is available from the company's accounting records, the actuary, and the fund trustee for 20X6. REQUIRED: (1) (a) Using the attached answer sheet, calculate the following amounts for Tallinn Corporation, showing appropriate supporting calculations. Round all amounts to the nearest whole dollar. Projected benefit obligation at December 31, 20X6. Assume there are no net gains or losses for the period. (b) Fair value of plan assets at December 31, 20X6. (c) Pension expense for 20X6. (d) Pension asset/liability balance at December 31, 20X6. Using the attached form, prepare the general journal entry(ies), in proper form, required by the employer on their books for the pension plan for 20X6. (2) TALLINN CORPORATION INFORMATION FOR DEFINED BENEFIT PENSION PLAN FOR YEAR 20X6 On January 1, 20X6, Tallinn Corporation had the following balances. Projected benefit obligation Fair value of plan assets $ 7,200,000 7,200,000 Other data related to the pension plan for 20X6. Service cost Contributions to the plan Benefits paid Actual return on plan assets Settlement rate Expected rate of return 315.000 459.000 450,000 432,000 9% 6% (1) TALLINN CORPORATION CALCULATION OF VARIOUS AMOUNTS FOR PENSION PLAN FOR YEAR ENDED DECEMBER 31, 20X6 CALCULATION OF PROJECTED BENEFIT OBLIGATION FOR YEAR ENDED DECEMBER 31, 20X6 (a) (b) CALCULATION OF FAIR VALUE OF PLAN ASSETS AT DECEMBER 31, 20X6 CALCULATION OF PENSION EXPENSE FOR YEAR ENDED DECEMBER 31, 20X6 TALLINN CORPORATION CALCULATION OF VARIOUS AMOUNTS FOR PENSION PLAN (CONTINUED) FOR YEAR ENDED DECEMBER 31, 20X6 CALCULATION OF PENSION ASSET LIABILITY BALANCE AT DECEMBER 31, 20X6 (d) (2) TALLINN CORPORATION GENERAL JOURNAL FOR YEAR ENDED DECEMBER 31, 20X6 Explanation Debit Date Credit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Financial Accounting

Authors: Theodore Christensen, David Cottrell, Cassy Budd

13th Edition

1260772136, 9781260772135

More Books

Students also viewed these Accounting questions

Question

Intro loquity gremina

Answered: 1 week ago