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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
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.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education