E. Chariton Company provided the tollowing intormation concerning a detined benetit plan at the beginning of surrent vear prior to the adoption of revised PAS 19: Debit Credit Fair value of plan assets Unamortized past service cost Projected benefit obligation Unrecognized actuarial gain 4,750,000 1,250,000 5,500,000 850,000 The transactions for the current year relating to the defined benefit plan are as follows: Current service cost Discount rate 925,000 6% Actual return on plan assets Contribution to the plan Benefits paid to retirees Increase in projected benefit obligation due to changes in actuarial assumptions 485,000 1,350,000 995,000 150,000 Effective in the current year, the entity has applied the provisions of revised PAS 19 in relation to the defined benefit plan. REQUIRED: 15. Prepare journal entry to recognize the transitional effect of adopting revised PAS 19. 16. Determine the employee benefit expense for the current year. 17. Compute the remeasurement related to the defined benefit plan.
E. Chariton Company provided the tollowing intormation concerning a detined benetit plan at the beginning of surrent vear prior to the adoption of revised PAS 19: Debit Credit Fair value of plan assets Unamortized past service cost Projected benefit obligation Unrecognized actuarial gain 4,750,000 1,250,000 5,500,000 850,000 The transactions for the current year relating to the defined benefit plan are as follows: Current service cost Discount rate 925,000 6% Actual return on plan assets Contribution to the plan Benefits paid to retirees Increase in projected benefit obligation due to changes in actuarial assumptions 485,000 1,350,000 995,000 150,000 Effective in the current year, the entity has applied the provisions of revised PAS 19 in relation to the defined benefit plan. REQUIRED: 15. Prepare journal entry to recognize the transitional effect of adopting revised PAS 19. 16. Determine the employee benefit expense for the current year. 17. Compute the remeasurement related to the defined benefit plan.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![E. Chariton Company provided the tollowing intormation concerning a detined benetit plan at the beginning of
Surrent year prior to the adoption of revised PAS 19:
Debit
Credit
Fair value of plan assets
Unamortized past service cost
Projected benefit obligation
Unrecognized actuarial gain
4,750,000
1,250,000
5,500,000
850,000
The transactions for the current year relating to the defined benefit plan are as follows:
Current service cost
925,000
Discount rate
6%
Actual return on plan assets
Contribution to the plan
Benefits paid to retirees
485,000
1,350,000
995,000
Increase in projected benefit obligation due to changes in actuarial assumptions
150,000
Effective in the current year, the entity has applied the provisions of revised PAS 19 in relation to the defined
benefit plan.
REQUIRED:
15. Prepare journal entry to recognize the transitional effect of adopting revised PAS 19.
16. Determine the employee benefit expense for the current year.
17. Compute the remeasurement related to the defined benefit plan.
18. Prepare journal entry to record the employee benefit expense.
19. Compute for the Fair Value Plan Asset (FVPA) as of December 31.
20. Compute for the projected benefit obligation on December 31.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F930b1cda-6dc9-4955-9bcc-00391d1e6aa0%2Fc6083874-77de-42e3-bd51-3127335a92ff%2Flt87vdo_processed.png&w=3840&q=75)
Transcribed Image Text:E. Chariton Company provided the tollowing intormation concerning a detined benetit plan at the beginning of
Surrent year prior to the adoption of revised PAS 19:
Debit
Credit
Fair value of plan assets
Unamortized past service cost
Projected benefit obligation
Unrecognized actuarial gain
4,750,000
1,250,000
5,500,000
850,000
The transactions for the current year relating to the defined benefit plan are as follows:
Current service cost
925,000
Discount rate
6%
Actual return on plan assets
Contribution to the plan
Benefits paid to retirees
485,000
1,350,000
995,000
Increase in projected benefit obligation due to changes in actuarial assumptions
150,000
Effective in the current year, the entity has applied the provisions of revised PAS 19 in relation to the defined
benefit plan.
REQUIRED:
15. Prepare journal entry to recognize the transitional effect of adopting revised PAS 19.
16. Determine the employee benefit expense for the current year.
17. Compute the remeasurement related to the defined benefit plan.
18. Prepare journal entry to record the employee benefit expense.
19. Compute for the Fair Value Plan Asset (FVPA) as of December 31.
20. Compute for the projected benefit obligation on December 31.
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