The accountant for Camberwell Ltd. has developed the following information regarding the company's defined benefit pension plan
Question:
The accountant for Camberwell Ltd. has developed the following information regarding the company's defined benefit pension plan for calendar 2014:
Service cost...................................................................... $ 600,000
Actual return on plan assets............................................ 315,000
Contributions.................................................................. 1,080,000
Benefits paid to retirees..................................................... 72,000
Interest (discount) rate............................................................ 10%
The corporation uses the immediate recognition approach under ASPE.
Required:
a. Using the above information, complete the pension work sheet below for 2014. Indicate credit entries by parentheses, e.g. (72,000).
b. Prepare the journal entries to reflect the accounting for the company's pension plan for the year ended December 31, 2014.
Fundamentals of Advanced Accounting
ISBN: 978-0077862237
6th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik