Question 3: Record a journal entry for the following events

a) record the service cost for 20x2
b) record the net interest for 20x2
c) record the experience lost on asset
d) record the actuarial gain to change in assumptions
e) record the contribution to the fund for 20x2

  
 

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The following data relate to a defined benefit pension plan: $ 121,000 19,000 7,200 3,700 83,000 7,500 Defined benefit obligation, 31 December 20X1 Benefits paid to retirees in 20x2 during the year Current service cost for 20X2 Actual return on plan assets for 20X2 Fair value of plan assets, 31 December 20X1 Funding payment 1, December 20x2 Past service cost from amendment dated 31 December 20x2; liability is increased because benefits were increased on a retrospective basis Actuarial revaluation dated 31 December 20x2; decrease to liability because of changed mortality assumptions Long-term interest rate on corporate bonds 4, 200 (3,000) 7% Required: 1. Calculate the SFP net defined benefit pension liability as of 31 December 20X1. Net defined benefit pension liability, 31 December 20X1 The following data relate to a defined benefit pension plan: $ 121,000 19,000 7,200 3,700 83,000 7,500 Defined benefit obligation, 31 December 20X1 Benefits paid to retirees in 20x2 during the year Current service cost for 20X2 Actual return on plan assets for 20X2 Fair value of plan assets, 31 December 20X1 Funding payment 1, December 20x2 Past service cost from amendment dated 31 December 20x2; liability is increased because benefits were increased on a retrospective basis Actuarial revaluation dated 31 December 20x2; decrease to liability because of changed mortality assumptions Long-term interest rate on corporate bonds 4, 200 (3,000) 7% Required: 1. Calculate the SFP net defined benefit pension liability as of 31 December 20X1. Net defined benefit pension liability, 31 December 20X1

Answer rating: 100% (QA)

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