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.

Transcribed Image Text:

2011 $36,800 39,100 36,800 32,200 2012 2013 Annual service cost Discount rate and expected rate of return Actual return on plan assets Funding of current service cost Funding of past service cost Benefits paid Past service cost (plan amended, 1/1/11) Past service cost attributable to vested employees Change in actuarial assumptions establishes a Dec. 3 43,700 0% 50,370 43,700 69,000 37,720 368,000 193,000 $59,800 10% 55,200 59,800 80,500 48,300 10% 2013 accrued benefit obligation of 1,196,000