Sandhill Limited sponsors a defined benefit pension plan, and follows ASPE. The corporation's actuary provides the following information about the plan (in thousands of dollars): January 1, 2020 December 31, 2020 Vested benefit obligation $1,500 $1,510 Defined benefit obligation, accounting basis 2,240 3,044 Plan assets (fair value) 1,380 2,100 Interest/discount rate 10% 10% Net defined benefit liability/asset ? ? Past service cost, plan amendment, effective December 30, 2020 380 Service cost for the year 2020 320 Contributions (funding) 2020 700 Benefits paid in 2020 120
Sandhill Limited sponsors a defined benefit pension plan, and follows ASPE. The corporation's actuary provides the following information about the plan (in thousands of dollars): January 1, 2020 December 31, 2020 Vested benefit obligation $1,500 $1,510 Defined benefit obligation, accounting basis 2,240 3,044 Plan assets (fair value) 1,380 2,100 Interest/discount rate 10% 10% Net defined benefit liability/asset ? ? Past service cost, plan amendment, effective December 30, 2020 380 Service cost for the year 2020 320 Contributions (funding) 2020 700 Benefits paid in 2020 120
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
Section: Chapter Questions
Problem 7E
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Question
Transcribed Image Text:Prepare a 2020 pension work sheet. (Enter answers in thousands of dollars.)
Sandhill Limited
Pension Work Sheet - 2020 (ASPE)
General Journal Entries
Annual
Pension
Items
Expense
Cash
2$
Balance, Jan. 1, 2020
(a) Service cost
(b) Net interest/finance cost
(c) Asset remeasurement gain
(d) Past service cost in year
(e) Contributions
(f) Benefits paid
수
Expense entry - 2020
2$
Contribution entry - 2020
$
Balance, Dec. 31, 2020
%24
Transcribed Image Text:Sandhill Limited sponsors a defined benefit pension plan, and follows ASPE. The corporation's actuary provides the following
information about the plan (in thousands of dollars):
January 1, 2020
December 31, 2020
Vested benefit obligation
$1,500
$1,510
Defined benefit obligation, accounting basis
2,240
3,044
Plan assets (fair value)
1,380
2,100
Interest/discount rate
10%
10%
Net defined benefit liability/asset
?
?
Past service cost, plan amendment, effective December 30, 2020
380
Service cost for the year 2020
320
Contributions (funding) 2020
700
Benefits paid in 2020
120
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