Quentin Fishing Corp. (QFC), a publicly accountable entity, has provided a defined benefit pension plan for its employees for several years. QFC has provided the following information: Defined benefit obligation — January 1, 2020 $2,000,000 Plan assets (at market value) — January 1, 2020 $1,800,000 Yield on high-quality corporate bonds 4% Current service cost for the year ended — December 31, 2020 $ 300,000 Past service costs due to improvements in benefits — December 31, 2020 $ 500,000 Gain due to change in actuarial assumptions during 2020 $ 25,000 Actual return on plan assets for 2020 $ 40,000 Funds paid by QFC to the pension trustee — December 31, 2020 $ 400,000 Required: Prepare the journal entries for QFC’s defined benefit pension plan for 2020
Quentin Fishing Corp. (QFC), a publicly accountable entity, has provided a defined
benefit pension plan for its employees for several years. QFC has provided the following
information:
Defined benefit obligation — January 1, 2020 $2,000,000
Plan assets (at market value) — January 1, 2020 $1,800,000
Yield on high-quality corporate bonds 4%
Current service cost for the year ended — December 31, 2020 $ 300,000
Past service costs due to improvements in benefits —
December 31, 2020 $ 500,000
Gain due to change in actuarial assumptions during 2020 $ 25,000
Actual return on plan assets for 2020 $ 40,000
Funds paid by QFC to the pension trustee — December 31, 2020 $ 400,000
Required:
Prepare the
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