Pumpkin Ltd. received the following information from its pension plan trustee concerning their defined benefit pension...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Pumpkin Ltd. received the following information from its pension plan trustee concerning their defined benefit pension plan for the year ended December 31, 2020: Defined benefit obligation December 31, 2020 $3,500,000 1,750,000 Fair value of plan assets For 2020, the service cost is $210,000 and past service cost (effective Jan 1, 2020) is $100,000. During 2020, Pumpkin contributed $595,000 to the plan, and paid 89,000 to the retirees throughout the year. The actual return of the plan assets is $90,000. The company was also informed by the consulting firm that an actuarial gain of $750 should be reported. Pumpkin uses discount rates of 6%. Pumpkin uses the immediate recognition approach under IFRS. Instructions Please calculate Pumpkin's DBO and Plan Assets ending balance and net defined pension asset/liability by completing the following worksheet. No separate journal entry necessary. Items Beg Bal Current Service Past Service Interest Cost Expected Return Remeasurement Contribution Benefit Paid Actuarial Loss Expense Entry Contribution End Bal General Journal Entries Memo Record Pumpkin Ltd. received the following information from its pension plan trustee concerning their defined benefit pension plan for the year ended December 31, 2020: Defined benefit obligation December 31, 2020 $3,500,000 1,750,000 Fair value of plan assets For 2020, the service cost is $210,000 and past service cost (effective Jan 1, 2020) is $100,000. During 2020, Pumpkin contributed $595,000 to the plan, and paid 89,000 to the retirees throughout the year. The actual return of the plan assets is $90,000. The company was also informed by the consulting firm that an actuarial gain of $750 should be reported. Pumpkin uses discount rates of 6%. Pumpkin uses the immediate recognition approach under IFRS. Instructions Please calculate Pumpkin's DBO and Plan Assets ending balance and net defined pension asset/liability by completing the following worksheet. No separate journal entry necessary. Items Beg Bal Current Service Past Service Interest Cost Expected Return Remeasurement Contribution Benefit Paid Actuarial Loss Expense Entry Contribution End Bal General Journal Entries Memo Record
Expert Answer:
Related Book For
Intermediate Accounting IFRS
ISBN: 9781119607519
4th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
Students also viewed these accounting questions
-
Accounting Farmer Inc. received the following information from its pension plan trustee concerning the operation of the companys defined benefit pension plan for the year ended December 31, 2016: Dec...
-
Question 1 1. With the aid of a suitable supporting diagram, outline the purpose and key components of a Decision Support System (DSS). 2. With reference to the diagram you provided in your answer to...
-
The net income for the year ended December 31, 2015, for Oliva Company was $1,900,000. Additional information is as follows: Depreciation on plant...
-
Accounting for Contingencies and Provisions In accounting, contingencies and provisions play a crucial role in preparing financial statements and ensuring accurate representation of a company's...
-
Identify each of the following statements as true or false, and explain your answers. A. Information costs both increase the marginal cost of capital and reduce the internal rate of return on...
-
Find parametric equations for the given curve. y = x 2 , translated so that the minimum occurs at (4, 8)
-
The velocity of air in the diverging pipe shown in Fig. P4.26 is given by \(V_{1}=4 t \mathrm{ft} / \mathrm{s}\) and \(V_{2}=2 t \mathrm{ft} / \mathrm{s}\), where \(t\) is in seconds. (a) Determine...
-
On January 10, 2012, Ruggiero Co. sold merchandise on account to Edwards for $8,000, terms n/30. On February 9, Edwards gave Ruggiero Co. a 7% promissory note in settlement of this account. Prepare...
-
Write Code Questions 20. Write code that reads in 3 words one at a time, then creates a list containing all 3 words. 21. Write a program that reads in an integer from the user and then outputs...
-
On December 1, Year 1, John and Patty Driver formed a corporation called Susquehanna Equipment Rentals. The new corporation was able to begin operations immediately by purchasing the assets and...
-
There are numerous factors that both directly and indirectly impact marketing, and the efforts of marketers. Motivation, retention of information, creativity, being a risk taker, learning, being...
-
Aroon is a valuable employee for his company, and he will receive a significant bonus. His employer has asked him to consider moving to a new location in a different state within the company. His...
-
Gaspar Manufacturing produces a single product: a component for commercial agricultural machinery. The company uses absorption costing for external financial reporting purposes and variable costing...
-
Choose the default join type implemented, when only the keyword JOIN is specified? O LEFT OUTER JOIN O RIGHT OUTER JOIN OSELF JOIN O INNER JOIN
-
PCB Corporation manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 3,120 units. The utilities and maintenance costs...
-
Sentry Solutions sells security systems for $771. Sentry sources security systems from Single Source, Inc., for a variable cost of $511 per unit. What is Sentry Solutions' contribution margin in...
-
CA Qu. 43 What is true of the malware Trojan horse? What is true of the malware Trojan horse? Check All That Apply often found attached to free downloads and apps often used to find passwords,...
-
Draw two scatterplots, one for which r = 1 and a second for which r = 21.
-
Cardinal Ltd. is negotiating to lease a piece of equipment to MTBA plc. MTBA requests that the lease be for 9 years. The equipment has a useful life of 10 years. Cardinal wants a guarantee that the...
-
Agassi AG is preparing the comparative financial statements to be included in the annual report to shareholders. Agassi employs a fiscal year ending May 31. Income before income tax for Agassi was...
-
Lowell AG has used the accrual basis of accounting for several years. A review of the records, however, indicates that some expenses and revenues have been handled on a cash basis because of errors...
-
How does risk affect the financial management of sport organizations?
-
Describe the process of determining a nominal interest rate.
-
Of MLB, the NBA, and the NHL, which league has the most risk, and which has the least? Why?
Study smarter with the SolutionInn App