Ridley Corporation is a manufacturing company in the Caribbean. The company sponsors a defined beneflt pension plan for its employees. The following balances re to the plan on January 1, 2020. (amounts in thousands). Defined benefit obligation Plan assets (market-related value) Pension asset/liability $340,000 $270,000 $ 70,000 Cr $ 39,000 OC-Loss
Ridley Corporation is a manufacturing company in the Caribbean. The company sponsors a defined beneflt pension plan for its employees. The following balances re to the plan on January 1, 2020. (amounts in thousands). Defined benefit obligation Plan assets (market-related value) Pension asset/liability $340,000 $270,000 $ 70,000 Cr $ 39,000 OC-Loss
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
Section: Chapter Questions
Problem 7E
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![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1680d3e7-b38a-4c0e-96f4-caebab5b053f%2F72a18dd3-3833-41c0-9b9e-7e916197bf62%2Fcawqqg9_processed.jpeg&w=3840&q=75)
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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