Ridley Corporation is a manufacturing company in the Caribbean. The company sponsors a defined benefit pension plan for its employees. The following balances relate to the plan on January 1, 2020. (amounts in thousands). Defined benefit obligation Plan assets (market-related value) Pension asset/liability OCI—Loss $340,000 $270,000 $ 70,000 Cr $ 39,000 On December 31, 2020, the actuary provided the following additional data as a result of the operation of the plan during the year. Actual return on plan assets Service cost Benefits paid retirees Contributions Discount (interest) rate $27,000 $45,000 $41,000 $65,000 7% 1. Prepare the journal entry to record pension expense and the employer’s contribution to the pension plan in 2020 2. Indicate the pension-related amounts that would be reported on the income statement and the statement of financial position for Ridley Corporation for the year 2020
Ridley Corporation is a manufacturing company in the Caribbean. The company
sponsors a defined benefit pension plan for its employees. The following balances relate
to the plan on January 1, 2020. (amounts in thousands).
|
Defined benefit obligation |
$340,000 |
On December 31, 2020, the actuary provided the following additional data as a result of
the operation of the plan during the year.
|
Actual return on plan assets |
$27,000 |
1. Prepare the
the pension plan in 2020
2. Indicate the pension-related amounts that would be reported on the income statement and
the
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