Sheridan Corporation initiated a defined benefit pension plan for its 50 employees on January 1, 2020. The insurance company that administers the pension plan provides the following information for the years 2020, 2021, and 2022: For Year Ended December 31 2020 2021 2022 Plan assets (fair value) $52,000 $86,000 $169,000 Defined benefit obligation 63,900 Net actuarial (gain) loss: DBO 8,900 (24,500 ) 84,500 Remeasurement (gain) loss: fund assets (15,120 ) Employer's funding contribution (made at end of year) 52,000 60,000 95,000 There were no balances as at January 1, 2020, when the plan was initiated, because no credit was given for past service. The rate used to discount the company's pension obligation was 13% in 2020, 11% in 2021, and 8% in 2022. The service cost component of net periodic pension expense amounted to the following: 2020, $55,000; 2021, $86,000; and 2022, $120,000. No benefits were paid in 2020, but $31,000 was paid in 2021, and $34,000 in 2022. (All benefits were paid and all actuarial gains and losses were determined at the end of the year.) The company applies IFRS.
Sheridan Corporation initiated a defined benefit pension plan for its 50 employees on January 1, 2020. The insurance company that administers the pension plan provides the following information for the years 2020, 2021, and 2022: For Year Ended December 31 2020 2021 2022 Plan assets (fair value) $52,000 $86,000 $169,000 Defined benefit obligation 63,900 Net actuarial (gain) loss: DBO 8,900 (24,500 ) 84,500 Remeasurement (gain) loss: fund assets (15,120 ) Employer's funding contribution (made at end of year) 52,000 60,000 95,000 There were no balances as at January 1, 2020, when the plan was initiated, because no credit was given for past service. The rate used to discount the company's pension obligation was 13% in 2020, 11% in 2021, and 8% in 2022. The service cost component of net periodic pension expense amounted to the following: 2020, $55,000; 2021, $86,000; and 2022, $120,000. No benefits were paid in 2020, but $31,000 was paid in 2021, and $34,000 in 2022. (All benefits were paid and all actuarial gains and losses were determined at the end of the year.) The company applies IFRS.
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 3P
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Transcribed Image Text:Sheridan Corporation initiated a defined benefit pension plan for its 50 employees on January 1, 2020. The insurance company that
administers the pension plan provides the following information for the years 2020, 2021, and 2022:
For Year Ended December 31
2020
2021
2022
Plan assets (fair value)
$52,000
$86,000
$169,000
Defined benefit obligation
63,900
Net actuarial (gain) loss: DBO
8,900
(24,500 )
84,500
Remeasurement (gain) loss: fund assets
?
?
(15,120 )
Employer's funding contribution (made at end of year)
52,000
60,000
95,000
There were no balances as at January 1, 2020, when the plan was initiated, because no credit was given for past service. The rate used
to discount the company's pension obligation was 13% in 2020, 11% in 2021, and 8% in 2022. The service cost component of net
periodic pension expense amounted to the following: 2020, $55,000; 2021, $86,000; and 2022, $120,000. No benefits were paid in
2020, but $31,000 was paid in 2021, and $34,000 in 2022. (All benefits were paid and all actuarial gains and losses were determined
at the end of the year.) The company applies IFRS.
Transcribed Image Text:Prepare and complete a pension work sheet for each of 2020, 2021, and 2022. (Round answers to O decimal places, eg. 5,275.)
Sheridan Corporation
Pension Work Sheet-2020, 2021 and 2022
General Journal Entries
Memo Record
Remeasurement (Gain)
Annual Pension
Net Defined
Defined Benefit
Items
Loss (OCI)
Expense
Cash
Benefit Liab/Asset
Obligation
Plan Assets
$
Balance, Jan. 1, 2020
(a) Service cost
(b) Net interest/finance cost
(c) Actuarial loss, DBO
v.
(d) Contributions
(e) Benefts paid
Expense entry
Funding entry, 12/31/20
$
Balance, Dec. 31, 2020
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