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a. Prepare a worksheet for the postretirement plan in 2022.

a. Prepare a worksheet for the postretirement plan in 2022.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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P20.14 (LO 6) (Postretirement Benefit Worksheet-2 Years) Elton AG has the following postretirement benefit plan balances on January 1, 2022. Defined postretirement benefit obligation €2,250,000 Fair value of plan assets 2,250,000 The discount (interest) rate applicable to the plan is 10%. On January 1, 2023, the company amends the plan so that past service costs of €175,000 are created. Other data related to the plan are as follows. 2022 2023 Service costs € 75,000 € 85,000 Contributions (funding) to the plan 45,000 Benefits paid 35,000 40,000 45,000 Actual return on plan assets 140,000 120,000 Instructions a. Prepare a worksheet for the postretirement plan in 2022. b. Prepare any journal entries related to the postretirement plan that would be needed at December 31, 2022. c. Prepare a worksheet for 2023 and any journal entries related to the postretirement plan as of December 31, 2023. d. Indicate the postretirement-benefit-related amounts reported in the 2023 financial statements.
Transcribed Image Text:P20.14 (LO 6) (Postretirement Benefit Worksheet-2 Years) Elton AG has the following postretirement benefit plan balances on January 1, 2022. Defined postretirement benefit obligation €2,250,000 Fair value of plan assets 2,250,000 The discount (interest) rate applicable to the plan is 10%. On January 1, 2023, the company amends the plan so that past service costs of €175,000 are created. Other data related to the plan are as follows. 2022 2023 Service costs € 75,000 € 85,000 Contributions (funding) to the plan 45,000 Benefits paid 35,000 40,000 45,000 Actual return on plan assets 140,000 120,000 Instructions a. Prepare a worksheet for the postretirement plan in 2022. b. Prepare any journal entries related to the postretirement plan that would be needed at December 31, 2022. c. Prepare a worksheet for 2023 and any journal entries related to the postretirement plan as of December 31, 2023. d. Indicate the postretirement-benefit-related amounts reported in the 2023 financial statements.
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