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Accounting Global Communications began a defined benefit pension plan for all full-time employees in 2005. The plan was amended on 1/2/2021 to increase pension benefits. The result was an increase of $25,000 in the PBO. The

Accounting Global Communications began a defined benefit pension plan for all full-time employees in 2005. The plan was amended on 1/2/2021 to increase pension benefits. The result was an increase of $25,000 in the PBO. The

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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Accounting Global Communications began a defined benefit pension plan for all full-time employees in 2005. The plan was amended on 1/2/2021 to increase pension benefits. The result was an increase of $25,000 in the PBO. The company funds its defined benefit pension plan by contributing (annually) the year's service cost plus a portion of the prior service cost. Reports from the actuary and the trustee of plan assets reveal the info in the table below. Additional information: Average remaining service life of the active employee group is 15 years in 2021. Settlement rate for liability 6% Expected return on plan assets 10% Prior Service cost (amendment) РВО АВО Plan Assets Pension Asset/(Liability) Service cost Cash contributions Retiree benefits paid Actual return on plan assets At 12/31/2020 ($400,000) ($330.000) $300,000 ($100.000) During 2021 $25,000 $41,000 $48.000 $38,000 $30.000 Required: Complete the pension worksheet in good form
Transcribed Image Text:Accounting Global Communications began a defined benefit pension plan for all full-time employees in 2005. The plan was amended on 1/2/2021 to increase pension benefits. The result was an increase of $25,000 in the PBO. The company funds its defined benefit pension plan by contributing (annually) the year's service cost plus a portion of the prior service cost. Reports from the actuary and the trustee of plan assets reveal the info in the table below. Additional information: Average remaining service life of the active employee group is 15 years in 2021. Settlement rate for liability 6% Expected return on plan assets 10% Prior Service cost (amendment) РВО АВО Plan Assets Pension Asset/(Liability) Service cost Cash contributions Retiree benefits paid Actual return on plan assets At 12/31/2020 ($400,000) ($330.000) $300,000 ($100.000) During 2021 $25,000 $41,000 $48.000 $38,000 $30.000 Required: Complete the pension worksheet in good form
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