Dayte Corporation reports the following January 1 2011 balances for
Dayte Corporation reports the following January 1, 2011 balances for its defined benefit pension plan, which it accounts for using the deferral and amortization approach under IFRS: plan assets, $460,000; accrued benefit obligation, $460,000. Other data relating to three years of operation of the plan are as follows:
It will take an average of seven years until the pension benefits become vested for employees whose benefits are not yet vested.
Instructions
(a) Prepare a continuity schedule of the projected benefit obligation over the three-year period.
(b) Prepare a continuity schedule of the fund assets over the three-year period.
(c) Determine the pension expense for each of 2011, 2012, and 2013.
(d) Prepare the journal entries to reflect the pension plan transactions and events for each year.
(e) Prepare a schedule reconciling the plan’s funded status with the pension amounts reported on the balance sheet over the three-year period.
(f) Determine the pension expense for each of 2011, 2012, and 2013 assuming that the company elects to recognize 100% of the actuarial gains and losses as incurred.
Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
    Tutors
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
OR
Relevant Tutors available to help