Actuarial loss on change in assumptions, arising during 20X1 115,000 Actual return on plan assets for 20X1 12,000 Fair value of plan assets, January 1, 20X1 344,000 Current service cost for 20X1 219,200 Plan contribution for 20X1 made on March 1, 20X1 424,000 Benefits paid in 20X1 57,500 Yield on long-term corporate bonds 4.5% SFP Accumulated OCI, pension, January 1, 20X1 80,400 DR Retained Earnings, January 1, 20X1 5,500,000 CR 20X1 Earnings, prior to any pension expense 4,000,000 CR Required: 1. Compute the defined benefit obligation at December 31, 20X1 and the Fair Value of plan assets on the same date. 2. Analyze the three elements of pension accounting for 20X1: Service Cost, Net Interest, and Remeasurements. Prepare entries and also an entry for the contribution to the fund during 20X1.

Answer rating: 100% (QA)

1 PBO at 1231x1 and 1231x2 Particulars20x120x2 Beginning balance16650001666500 Service cost870009800... View the full answer