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Ridley Corporation i a sponsors a defined ben to the plan on January

Ridley Corporation i a sponsors a defined ben to the plan on January

FINANCIAL ACCOUNTING
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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Can you answer b, c & d please

Ridley Corporation is a manufacturing company In the Carlbbean. The company sponsors a defined benefit penslon plan for its employees. The following balances relate to the plan on January 1, 2020. (amounts in thousands). Defined benefit obligation Plan assets (market-related value) Pension asset/liability OC-Loss $340,000 $270,000 $ 70,000 Cr $ 39,000 On December 31, 2020, the actuary provided the following additional data as a result of the operation of the plan during the year. Actual return on plan assets $27,000 $45,000 $41,000 $65,000 7% Service cost Benefits paid retirees Contributions Discount (Interest) rate Instructions. (a) Prepare a 2020 pension worksheet with supplementary schedules. (b) Determine the amounts of the components of pension expense that should be recognized by the company in 2020. (c) Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2020. (d) Indicate the penslon-related amounts that would be reported on the income statement and the statement of financial position for Ridley Corporation for the year 2020
Transcribed Image Text:Ridley Corporation is a manufacturing company In the Carlbbean. The company sponsors a defined benefit penslon plan for its employees. The following balances relate to the plan on January 1, 2020. (amounts in thousands). Defined benefit obligation Plan assets (market-related value) Pension asset/liability OC-Loss $340,000 $270,000 $ 70,000 Cr $ 39,000 On December 31, 2020, the actuary provided the following additional data as a result of the operation of the plan during the year. Actual return on plan assets $27,000 $45,000 $41,000 $65,000 7% Service cost Benefits paid retirees Contributions Discount (Interest) rate Instructions. (a) Prepare a 2020 pension worksheet with supplementary schedules. (b) Determine the amounts of the components of pension expense that should be recognized by the company in 2020. (c) Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2020. (d) Indicate the penslon-related amounts that would be reported on the income statement and the statement of financial position for Ridley Corporation for the year 2020
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