Question
In: Accounting
Pen Fen Corp has a defined benefit pension expense plan for its employees. In the year...
Pen Fen Corp has a defined benefit pension expense plan for its employees. In the year ended Dec 31, 2019, Pen Fen gathered the following information ( the company uses ASPE)
- Contributions ......................................................... $500,000
- Expected & Actual Return on Plan Assets ....... 10%
- Interest rate on Obligations ................................ 12%
- Service costs relating to past services ............. $100,000
- Actuarial Loss ....................................................... $40,000
- Current Service costs .......................................... $630,000
- DBO – Jan 1 ,2019................................................ $720,000
- FV Plan Assets – Jan 1 , 2019............................ $590,000
- Benefits Paid.......................................................... $450,000
Required
- Calculate the Pension expense for 2019
- Prepare the relevant Journal Entries
- Explain how your answer for part 1 will be different if Pen Fen uses IFRS no J/E required
Solutions
ekkarill92 answered 2 years agoRelated Solutions
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Duntroon Corp. has had a defined benefit pension plan for its
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Duntroon’s December 31, 20X5, fiscal year follows:
1. As at December 31, 20X4, the balance in the defined benefit
obligation was $980,000 and the plan assets was $720,000.
2. On January 1, 20X5, there was a past service adjustment that
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ABC Corp. provides its employees with a defined benefit pension
plan. The company's actuary has provided you with the following
information as of December 31, 2020: PBO $ 1,200,000 Fair Value
Plan Assets 1,650,000 Current Service Cost 480,000 Interest Cost
48,000 PSC amortization 120,000 Expected and actual return on
assets 165,000 In the past, contributions made to the pension plan
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The company has not made any contribution in 2020....
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Bonny Corp. has a defined benefit pension plan for its employees
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following information is available for 2016 and 2017 related to the
pension plan:
2018
2017
Projected benefit obligation, 1/1
?
$
750,000
Service
cost
$
70,000
60,000
Actual return on
plan assets
66,400
72,000
Bonny Corp.
contributions for year ended 12/31
74,000
68,000
Benefits paid
during year
67,000
60,000
Fair value of
plan assets, 1/1
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600,000
Actuarial...
Teal Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the...
Teal Corp. sponsors a defined benefit pension plan for its
employees. On January 1, 2020, the following balances relate to
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Plan assets
$489,900
Projected benefit obligation
616,700
Pension asset/liability
126,800
Accumulated OCI (PSC)
95,600
Dr.
As a result of the operation of the plan during 2020, the following
additional data are provided by the actuary.
Service cost
$86,900
Settlement rate, 9%
Actual return on plan assets
57,100
Amortization of prior service cost
19,500
Expected return on plan assets...
Teal Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the...
Teal Corp. sponsors a defined benefit pension plan for its
employees. On January 1, 2020, the following balances relate to
this plan.
Plan assets
$489,900
Projected benefit obligation
616,700
Pension asset/liability
126,800
Accumulated OCI (PSC)
95,600
Dr.
As a result of the operation of the plan during 2020, the following
additional data are provided by the actuary.
Service cost
$86,900
Settlement rate, 9%
Actual return on plan assets
57,100
Amortization of prior service cost
19,500
Expected return on plan assets...
Flint Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the...
Flint Corp. sponsors a defined benefit pension plan for its
employees. On January 1, 2020, the following balances relate to
this plan.
Plan assets
$470,900
Projected benefit obligation
609,900
Pension asset/liability
139,000
Accumulated OCI (PSC)
99,800
Dr.
As a result of the operation of the plan during 2020, the following
additional data are provided by the actuary.
Service cost
$93,800
Settlement rate, 10%
Actual return on plan assets
54,500
Amortization of prior service cost
19,800
Expected return on plan assets...
Bridgeport Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the...
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Plan assets (market-related value)
$536,000
Projected benefit obligation
652,000
Pension asset/liability
116,000
Cr.
Prior service cost
86,000
Net gain or loss (debit)
99,000
As a result of the operation of the plan during 2020, the actuary
provided the following additional data for 2020.
Service cost
$124,000
Settlement rate, 9%; expected return rate, 10%
Actual return on plan assets...
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Cullumber Corp. sponsors a defined benefit pension plan for its
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Plan assets (market-related value)
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Projected benefit obligation
342,400
Pension asset/liability
72,000
Cr.
Prior service cost
89,500
OCI—Loss
38,400
As a result of the operation of the plan during 2021, the actuary
provided the following additional data for 2021.
Service cost
$44,200
Actual return on plan assets
27,600
Amortization of prior service cost
11,900
Contributions
64,400
Benefits paid...
Pharoah Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2017, the...
Pharoah Corp. sponsors a defined benefit pension plan for its
employees. On January 1, 2017, the following balances relate to
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Plan assets $498,300
Projected benefit obligation 614,700
Pension asset/liability 116,400
Accumulated OCI (PSC) 96,900 Dr.
As a result of the operation of the plan during 2017, the
following additional data are provided by the actuary.
Service cost $92,500
Settlement rate, 9%
Actual return on plan assets 54,200
Amortization of prior service cost 18,100
Expected return on plan assets...
Bridgeport Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the...
Bridgeport Corp. sponsors a defined benefit pension plan for its
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Plan assets
$469,800
Projected benefit obligation
607,000
Pension asset/liability
137,200
Accumulated OCI (PSC)
97,100
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As a result of the operation of the plan during 2020, the following
additional data are provided by the actuary.
Service cost
$91,100
Settlement rate, 8%
Actual return on plan assets
54,400
Amortization of prior service cost
19,100
Expected return on plan assets...
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