Question 1: Preparation of Pension Worksheet ( Vidalia Corporation, which follows ASPE, provides the following information about its defined benefit pension plan for the year 2022: Current service cost Contribution to the plan Past service cost, effective December 31, 2022 Actual return on plan assets Benefits paid Net defined benefit liability at January 1, 2022 Plan assets at January 1, 2022 Defined benefit obligation at January 1, 2022 Interest/discount rate on the DBO and plan assets $ 144,000 182,600 60,000 160,000 95,000 20,000 1,780,000 1,800,000 9% Instructions a. Prepare a pension work sheet: insert the January 1, 2022 balances and show the December 31, 2022 balances. Indicate credit entries by parentheses, e.g. (25,000) Prepare all journal entries. b. c. What is the amount of the plan's surplus/deficit at December 31, 2022?
Question 1: Preparation of Pension Worksheet ( Vidalia Corporation, which follows ASPE, provides the following information about its defined benefit pension plan for the year 2022: Current service cost Contribution to the plan Past service cost, effective December 31, 2022 Actual return on plan assets Benefits paid Net defined benefit liability at January 1, 2022 Plan assets at January 1, 2022 Defined benefit obligation at January 1, 2022 Interest/discount rate on the DBO and plan assets $ 144,000 182,600 60,000 160,000 95,000 20,000 1,780,000 1,800,000 9% Instructions a. Prepare a pension work sheet: insert the January 1, 2022 balances and show the December 31, 2022 balances. Indicate credit entries by parentheses, e.g. (25,000) Prepare all journal entries. b. c. What is the amount of the plan's surplus/deficit at December 31, 2022?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Question 1: Preparation of Pension Worksheet (
Vidalia Corporation, which follows ASPE, provides the following information about its defined benefit
pension plan for the year 2022:
Current service cost
Contribution to the plan
Past service cost, effective December 31, 2022
Actual return on plan assets
Benefits paid
Net defined benefit liability at January 1, 2022
Plan assets at January 1, 2022
Defined benefit obligation at January 1, 2022
Interest/discount rate on the DBO and plan assets
$ 144,000
182,600
60,000
160,000
95,000
20,000
1,780,000
1,800,000
9%
Instructions
a. Prepare a pension work sheet: insert the January 1, 2022 balances and show the December
31, 2022 balances. Indicate credit entries by parentheses, e.g. (25,000)
b. Prepare all journal entries.
c. What is the amount of the plan's surplus/deficit at December 31, 2022?
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