Question
In: Accounting
P20.8 (LO2,4,5) (Comprehensive 2-Year Worksheet) Lemke SA sponsors a defined benefit pension plan for its employees....
P20.8 (LO2,4,5) (Comprehensive 2-Year Worksheet) Lemke SA sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2019 and 2020.
| 2019 | 2020 | |
| Defined benefit obligation, Jan1 | 600,000 | |
| Plan Assets(fair value), Jan 1 | 410,000 | |
| Pension asset/liability, Jan 1 | 190,000 | |
| Service Cost | 40,000 | 59,000 |
| Discount(interest)rate | 10% | 10% |
| Actual return on plan assets | 36,000 | 61,000 |
| Annual Contributions | 97,000 | 81,000 |
| Benefits paid retires | 31,500 | 54,000 |
| Increase in defined benefit obligation due to changes in actuarial assumptions | 87,000 | 0 |
| Accumulated benefit obligation at Dec 31 | 721,800 | 789,000 |
| Vested benefit obligation at Dec 31 | 464,000 |
Instructions
a. Prepare a pension worksheet presenting both years 2019 and 2020.
b. Prepare the journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31 of each year.
C. For 2020, indicate the pension amounts reported in the financial statements.
Solutions
Expert Solution
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ekkarill92 answered 2 years agoRelated Solutions
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