On January 1, 2022, Seascape Ltd. reported the following balances relating to their definedbenefit pension plan. Seascape Ltd. uses ASPE.Defined benefit obligation$ 2,100,000Fair value of plan assets.1,900,000Other data related to the pension plan for 2022 are:Current service cost110,000Contributions to the plan105,000Benefits paid..180,000Actual return on plan assets.142,000Interest (discount) rate7%Past service costs, Jan 1120,000Actuary adjustment, Dec 31220,000Pension Asset/Liability account on Balance SheetInstructionsa) Calculate the defined benefit obligation at December 31, 2022.b) Calculate the fair value of plan assets at December 31, 2022.c) Calculate pension expense for 2022.d) Prepare the journal entries to record the pension expense and the contributions for 2022.e)How would your answer be different if the company used IFRS?f) What is the funded status of the plan on December 31, 2022? Indicate whether it isunderfunded or overfunded.

When actuarial assumptions and actual experience diverge, changes in pension liabilities and plan…

On January 1, 2022, Seascape Ltd. reported the following balances relating to their defined benefit pension plan. Seascape Ltd. uses ASPE. Defined benefit obligation. $2,100,000 Fair value of plan assets.... 1,900,000 Other data related to the pension plan for 2022 are: Current service cost. 110,000 Contributions to the plan. 105,000 Benefits paid. 180,000 Actual return on plan assets. 142,000 Interest (discount) rate 7% Past service costs, Jan 1 120,000 220,000 Actuary adjustment, Dec 31 Pension Asset/Liability account on Balance Sheet Instructions a) Calculate the defined benefit obligation at December 31, 2022. b) Calculate the fair value of plan assets at December 31, 2022. c) Calculate pension expense for 2022. d) Prepare the journal entries to record the pension expense and the contributions for 2022. e) How would your answer be different if the company used IFRS? f) What is the funded status of the plan on December 31, 2022? Indicate whether it is underfunded or overfunded.

On January 1, 2022, Seascape Ltd. reported the following balances relating to their defined benefit pension plan. Seascape Ltd. uses ASPE. Defined benefit obligation. $2,100,000 Fair value of plan assets.... 1,900,000 Other data related to the pension plan for 2022 are: Current service cost. 110,000 Contributions to the plan. 105,000 Benefits paid. 180,000 Actual return on plan assets. 142,000 Interest (discount) rate 7% Past service costs, Jan 1 120,000 220,000 Actuary adjustment, Dec 31 Pension Asset/Liability account on Balance Sheet Instructions a) Calculate the defined benefit obligation at December 31, 2022. b) Calculate the fair value of plan assets at December 31, 2022. c) Calculate pension expense for 2022. d) Prepare the journal entries to record the pension expense and the contributions for 2022. e) How would your answer be different if the company used IFRS? f) What is the funded status of the plan on December 31, 2022? Indicate whether it is underfunded or overfunded.

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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