Question
The following defined benefit pension data of Blossom Corp. apply to the year 2020: Defined benefit obligation, funding basis, 1/1/20 (before amendment) $444,000 Plan assets,
The following defined benefit pension data of Blossom Corp. apply to the year 2020:
Defined benefit obligation, funding basis, 1/1/20 (before amendment) | $444,000 | ||
Plan assets, 1/1/20 | 433,800 | ||
Net defined benefit liability, 1/1/20 | 10,200 | ||
On January 1, 2020, Blossom Corp., through a plan amendment, granted prior service benefits having a present value of | 54,500 | ||
Interest/discount rate | 9% | ||
Annual pension service cost | 43,700 | ||
Contributions (funding) | 43,600 | ||
Actual return on plan assets | 41,300 | ||
Benefits paid to retirees | 35,700 |
The company applies ASPE and has made an accounting policy choice to base its actuarial valuation of the DBO on the funding basis.
Prepare a continuity schedule for the DBO for 2020. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Blossom Corp. Continuity Schedule choose the accounting period For the Year Ended December 31, 2020For the Month Ended December 31, 2020December 31, 2020 | |||
---|---|---|---|
select an opening name Benefits Paid OutInterest CostDefined Benefit Obligation, 1/1/20Past Service CostCurrent Service CostDefined Benefit Obligation, 12/31/20 | $enter a dollar amount | ||
select an item Benefits Paid OutCurrent Service CostInterest CostPast Service CostDefined Benefit Obligation, 12/31/20Defined Benefit Obligation, 1/1/20 | enter a dollar amount | ||
enter a subtotal of the two previous amounts | |||
select an item Defined Benefit Obligation, 1/1/20Past Service CostDefined Benefit Obligation, 12/31/20Interest CostBenefits Paid OutCurrent Service Cost | enter a dollar amount | ||
select an item Current Service CostDefined Benefit Obligation, 12/31/20Past Service CostDefined Benefit Obligation, 1/1/20Interest CostBenefits Paid Out | enter a dollar amount | ||
select an item Interest CostDefined Benefit Obligation, 12/31/20Benefits Paid OutCurrent Service CostDefined Benefit Obligation, 1/1/20Past Service Cost | enter a dollar amount | ||
select a closing name Benefits Paid OutPast Service CostCurrent Service CostInterest CostDefined Benefit Obligation, 12/31/20Defined Benefit Obligation, 1/1/20 | $enter a total amount |
eTextbook and Media
Prepare a continuity schedule for the plan assets for 2020. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Blossom Corp. Continuity Schedule choose the accounting period For the Year Ended December 31, 2020December 31, 2020For the Month Ended December 31, 2020 | |||
---|---|---|---|
select an opening name Benefits Paid OutContributionsPlan Assets, 1/1/20Plan Assets, 12/31/20Actual Return on Plan Assets | $enter a dollar amount | ||
select an item Benefits Paid OutPlan Assets, 12/31/20ContributionsActual Return on Plan AssetsPlan Assets, 1/1/20 | enter a dollar amount | ||
select an item Plan Assets, 1/1/20Benefits Paid OutContributionsActual Return on Plan AssetsPlan Assets, 12/31/20 | enter a dollar amount | ||
select an item Benefits Paid OutPlan Assets, 12/31/20Actual Return on Plan AssetsPlan Assets, 1/1/20Contributions | enter a dollar amount | ||
select a closing name Plan Assets, 12/31/20Actual Return on Plan AssetsContributionsPlan Assets, 1/1/20Benefits Paid Out | $enter a total amount |
eTextbook and Media
Calculate pension expense for 2020
Pension expense | $enter Pension expense in dollars |
Prepare the entry to record the expense. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Date | Account Titles and Explanation | Debit | Credit |
---|---|---|---|
December 31, 2020 | select an account title Pension Contributions PayablePension ExpenseContributionsCashNet Defined Benefit Liability/Asset | enter a debit amount | enter a credit amount |
select an account title Pension Contributions PayableContributionsNet Defined Benefit Liability/AssetPension ExpenseCash | enter a debit amount | enter a credit amount |
eTextbook and Media
Calculate the balance of the net defined benefit liability/asset at December 31, 2020.
Net defined benefit select asset or liability assetliability, December 31, 2020 | $enter a dollar amount |
eTextbook and Media
Identify the plans surplus or deficit at December 31, 2020.
Pension select an option deficitsurplus | $enter a dollar amount |
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