Manon Corporation applies ASPE and sponsors a defined benefit pension plan. The following pension plan information is
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Question:
Manon Corporation applies ASPE and sponsors a defined benefit pension plan. The following pension plan information is available for 2017 and 2018:
2017 | 2018 | |
---|---|---|
Plan assets (fair value), December 31 | $515,000 | $642,000 |
Defined benefit obligation, January 1 | 600,000 | 700,000 |
Net defined benefit liability (asset), January 1 | 240,000 | ? |
Current service cost | 60,000 | 90,000 |
Actual return on plan assets | 24,000 | 47,000 |
Funding of current service cost | 60,000 | 90,000 |
Funding of past service costs | 85,000 | 55,000 |
Benefits paid | ? | ? |
Interest/discount rate | 9% | 9% |
Instructions
(a) Calculate pension expense for 2017 and 2018.(b) Prepare all journal entries to record the pension expense and the company's pension plan funding for both years.
(c) Prepare the complete pension worksheets for Manon for 2017 and 2018.
(d) Prepare the required pension disclosure notes to the financial statements on December 31, 2018.
Related Book For
Intermediate Accounting
ISBN: 978-0470616314
IFRS edition volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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