Pumpkin Ltd. received the following information from its pension plan trustee concerning their defined benefit pension plan for the year ended December 31, 2023 January 1, 2023December 31, 2023Defined benefit obligation$3,500,000$3,990,000Fair value of plan assets1,750,0001,882,000For 2023, the service cost is $210,000 and past service cost (effective Jan. 1) is $100,000. During 2023, Pumpkin contributed $595,000 to the plan. The discount rate is 8%. Pumpkin uses IFRS. InstructionsPrepare the journal entries to record the defined benefit expense and the employer’s contribution for 2023. IFRS

Defined benefit plans are those plans which are maintained by employer for arranging retirement…

Answered: Pumpkin Ltd. received the following…

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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Pumpkin Ltd. received the following information from its pension plan trustee concerning their defined benefit pension plan for the year ended December 31, 2023

	January 1, 2023	December 31, 2023
Defined benefit obligation	$3,500,000	$3,990,000
Fair value of plan assets	1,750,000	1,882,000

For 2023, the service cost is $210,000 and past service cost (effective Jan. 1) is $100,000. During 2023, Pumpkin contributed $595,000 to the plan. The discount rate is 8%. Pumpkin uses IFRS.

Instructions

Prepare the journal entries to record the defined benefit expense and the employer’s contribution for 2023. IFRS

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