60.1K

Verified Solution

Link Copied!

Sunland Limited sponsors a defined benefit pension plan, and follows ASPE. The corporations actuary provides the following information about the plan (in thousands of dollars):

		January 1, 2020		December 31, 2020
Vested benefit obligation		$1,300		$1,520
Defined benefit obligation, accounting basis		2,260		2,976
Plan assets (fair value)		1,380		2,084
Interest/discount rate		10%		10%
Net defined benefit liability/asset		?		?
Past service cost, plan amendment, effective December 30, 2020				350
Service cost for the year 2020				290
Contributions (funding) 2020				600
Benefits paid in 2020				150

(Enter answers in thousands of dollars.)

Calculate the actual return on the plan assets in 2020.

Actual return on the plan assets in 2020

$enter the Actual return on the plan assets in 2020 in dollars

eTextbook and Media

Calculate the amount of the net defined benefit liability/asset as at January 1, 2020.

Net defined benefit select asset or liability liabilityasset, January 1, 2020

$enter a dollar amount

eTextbook and Media

Prepare a continuity schedule of the defined benefit obligation for 2020. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

select an opening name DBO, December 31, 2020Past Service Cost, Dec. 30/20 Plan AmendmentCurrent Service Cost, 2020Benefits Paid in 2020Interest CostDBO, January 1, 2020		$enter a dollar amount
select an item Current Service Cost, 2020Past Service Cost, Dec. 30/20 Plan AmendmentBenefits Paid in 2020DBO, December 31, 2020Interest CostDBO, January 1, 2020		enter a dollar amount
select an item DBO, December 31, 2020Past Service Cost, Dec. 30/20 Plan AmendmentCurrent Service Cost, 2020DBO, January 1, 2020Interest CostBenefits Paid in 2020		enter a dollar amount
select an item DBO, December 31, 2020Benefits Paid in 2020Current Service Cost, 2020Past Service Cost, Dec. 30/20 Plan AmendmentInterest CostDBO, January 1, 2020		enter a dollar amount
select an item Current Service Cost, 2020Past Service Cost, Dec. 30/20 Plan AmendmentDBO, December 31, 2020DBO, January 1, 2020Benefits Paid in 2020Interest Cost		enter a dollar amount
select a closing name Past Service Cost, Dec. 30/20 Plan AmendmentInterest CostDBO, January 1, 2020DBO, December 31, 2020Benefits Paid in 2020Current Service Cost, 2020		$enter a total amount

eTextbook and Media

Calculate the pension expense for 2020, separately identifying each amount making up the total expense. (Enter negative amounts using either a negative sign preceding the number, e.g. -45 or parentheses, e.g. (45).)

Current service cost		$enter a dollar amount
Net interest cost		enter a dollar amount
Asset remeasurement gain		enter a dollar amount
Past service cost		enter a dollar amount
Pension expense for 2020		$enter a total amount

eTextbook and Media

Prepare the pension-related entries made by the company during 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
2020	select an account title to record pension expense Net Defined Benefit Liability/AssetContributionsCashPension ExpensePension Contributions Payable	enter a debit amount	enter a credit amount
	select an account title to record pension expense CashContributionsPension Contributions PayablePension ExpenseNet Defined Benefit Liability/Asset	enter a debit amount	enter a credit amount
	(To record pension expense.)
2020	select an account title to record contribution to the pension fund Pension Contributions PayableCashContributionsPension ExpenseNet Defined Benefit Liability/Asset	enter a debit amount	enter a credit amount
	select an account title to record contribution to the pension fund CashNet Defined Benefit Liability/AssetPension Contributions PayablePension ExpenseContributions	enter a debit amount	enter a credit amount
	(To record contribution to the pension fund.)

eTextbook and Media

Compare the plans surplus or deficit at December 31, 2020, with the amount reported on the December 31, 2020 balance sheet.

Plan select an option deficitsurplus		$enter a dollar amount
Net defined benefit select asset or liability liabilityasset, Dec. 31/20		$enter a dollar amount

Answer & Explanation Solved by verified expert

See Answer