Headland Corporation is a publicly owned company that follows IFRS. On December 31, 2019, Headland's financial...
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Headland Corporation is a publicly owned company that follows IFRS. On December 31, 2019, Headland's financial records indicated the following information related to the company's defined benefit pension plan: Defined Benefit Obligation Pension Plan Assets $7,501,600 On January 1, 2020, Headland acquired the operations of AMX Ltd. As one of the conditions of the purchase, Headland agreed that AMX's employees would be included in Headland's defined benefit pension plan, and would be granted credit for the past service of AMX's employees. The actuary estimated the value of the prior service amount granted on January 1, 2020 to be $331,700. Headland's actuary provided the following information on December 31, 2020: Actual return on assets 7,252,200 Current year service cost Employer contributions for the year Benefits paid to retirees Actuarial increase in pension obligations Expected return on assets Discount rate $384,900 413,400 171,200 128,300 6% 5% 6% Balance January 1, 2020 (₂) Get Service Col (b) jigl (0) (e) Past Service Cost Net Interest/Tirane Cost Assct Romeasurnmant Cain/Loss Actuarial Cain/Lo (47 Employer Contribution Pension Turk Benefits Paid to Retirees from Persion Fund Ani Faust Falry 2120 Net Funding Fritry Balance, December 31, 2020 Remeasurement Gain/Loss OCI Annual Persion Expense Cash Net Defined Liability/ Asset Y Defined Benefit Obligation Plan Assets TI Y Prepare the journal entry to record the pension expense for 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Account Titles and Explanation (To record pension expense) (To record payment to the pension fund) Debit Credit Headland Corporation is a publicly owned company that follows IFRS. On December 31, 2019, Headland's financial records indicated the following information related to the company's defined benefit pension plan: Defined Benefit Obligation Pension Plan Assets $7,501,600 On January 1, 2020, Headland acquired the operations of AMX Ltd. As one of the conditions of the purchase, Headland agreed that AMX's employees would be included in Headland's defined benefit pension plan, and would be granted credit for the past service of AMX's employees. The actuary estimated the value of the prior service amount granted on January 1, 2020 to be $331,700. Headland's actuary provided the following information on December 31, 2020: Actual return on assets 7,252,200 Current year service cost Employer contributions for the year Benefits paid to retirees Actuarial increase in pension obligations Expected return on assets Discount rate $384,900 413,400 171,200 128,300 6% 5% 6% Balance January 1, 2020 (₂) Get Service Col (b) jigl (0) (e) Past Service Cost Net Interest/Tirane Cost Assct Romeasurnmant Cain/Loss Actuarial Cain/Lo (47 Employer Contribution Pension Turk Benefits Paid to Retirees from Persion Fund Ani Faust Falry 2120 Net Funding Fritry Balance, December 31, 2020 Remeasurement Gain/Loss OCI Annual Persion Expense Cash Net Defined Liability/ Asset Y Defined Benefit Obligation Plan Assets TI Y Prepare the journal entry to record the pension expense for 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Account Titles and Explanation (To record pension expense) (To record payment to the pension fund) Debit Credit
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Related Book For
Financial Reporting and Analysis
ISBN: 978-1259722653
7th edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
Posted Date:
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