The Jackson Company adopts acceptable accounting for its defined benefit pension plan on January 1, 2013, with
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Question:
The Jackson Company adopts acceptable accounting for its defined benefit pension plan on January 1, 2013, with the following beginning balances: plan assets $211,000; projected benefit obligation $261,000. Other data relating to the 3 years of operation of the plan are as follows.
2013 | 2014 | 2015 | |||||||
Annual cost of the service | $20,000 | $26,300 | $30,300 | ||||||
Settlement rate and expected rate of return | 10 | % | 10 | % | 10 | % | |||
Actual return on plan assets | 19,400 | 23,340 | 21,300 | ||||||
Annual funding (contributions) | 20,000 | 41.800 | 51,200 | ||||||
benefits paid | 17,000 | 18,200 | 23,400 | ||||||
Prior Service Cost (plan modified, 1/1/14) | 176,600 | ||||||||
Amortization of the cost of the previous service | 60,700 | 43,000 | |||||||
The change in the actuarial assumptions establishes as of December 31, 2015, an obligation for projected benefits of: | 518,800 |
Prepare a pension worksheet showing pension balances and activities for the 3 years.
Prepare journal entries (from the worksheet) to reflect all pension plan transactions and events as of December 31 of each year.
Indicate the amounts related to pensions reported in the 2015 financial statements
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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