Sophia Consultants Inc. has had a defined benefit pension plan since January 1, 2018.The following represents beginning balances as at January 1, 2022:Plan Asset $1,155,300; Defined Benefit Obligation $1,275,000; Net Pension Liability $119,700Additional Information is as follows for 2022:Current Service cost is $186,000 for 2022Company Funding/Contribution is $200,000 for 2022. Funding is made on December 31 of each year.Actual return on assets is $55,900 for 2022.There is an increase in obligation for $29,000 due to changes in Actuarial assumptions at Dec 31, 2022.There are payments made equal to $80,000 per year to retired employees in 2022 (payments to retireesare made at the end of the year on December 31).Past service cost of $85,900 from plan amendment dated December 31, 2022: liability is increasedbecause benefits were increased on a retroactive basis.For 2022, the assumed interest rate is 6%. Assume IFRS.Required:1. Determine Defined Benefit Obligation, Pension Asset, Pension Expense, AOCI, and NetPension Asset/Liability for 2022. Prepare a spreadsheet to determine all these pension items.2. Prepare the required journal entries for 2022 3. Prepare a partial balance sheet and a partial income statement for 2022
Sophia Consultants Inc. has had a defined benefit pension plan since January 1, 2018.The following represents beginning balances as at January 1, 2022:Plan Asset $1,155,300; Defined Benefit Obligation $1,275,000; Net Pension Liability $119,700Additional Information is as follows for 2022:Current Service cost is $186,000 for 2022Company Funding/Contribution is $200,000 for 2022. Funding is made on December 31 of each year.Actual return on assets is $55,900 for 2022.There is an increase in obligation for $29,000 due to changes in Actuarial assumptions at Dec 31, 2022.There are payments made equal to $80,000 per year to retired employees in 2022 (payments to retireesare made at the end of the year on December 31).Past service cost of $85,900 from plan amendment dated December 31, 2022: liability is increasedbecause benefits were increased on a retroactive basis.For 2022, the assumed interest rate is 6%. Assume IFRS.Required:1. Determine Defined Benefit Obligation, Pension Asset, Pension Expense, AOCI, and NetPension Asset/Liability for 2022. Prepare a spreadsheet to determine all these pension items.2. Prepare the required journal entries for 2022 3. Prepare a partial balance sheet and a partial income statement for 2022
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Sophia Consultants Inc. has had a defined benefit pension plan since January 1, 2018.
The following represents beginning balances as at January 1, 2022:
Plan Asset $1,155,300; Defined Benefit Obligation $1,275,000; Net Pension Liability $119,700
Additional Information is as follows for 2022:
Current Service cost is $186,000 for 2022
Company Funding/Contribution is $200,000 for 2022. Funding is made on December 31 of each year.
Actual return on assets is $55,900 for 2022.
There is an increase in obligation for $29,000 due to changes in Actuarial assumptions at Dec 31, 2022.
There are payments made equal to $80,000 per year to retired employees in 2022 (payments to retirees
are made at the end of the year on December 31).
Past service cost of $85,900 from plan amendment dated December 31, 2022: liability is increased
because benefits were increased on a retroactive basis.
For 2022, the assumed interest rate is 6%. Assume IFRS.
Required:
1. Determine Defined Benefit Obligation, Pension Asset, Pension Expense, AOCI, and Net
Pension Asset/Liability for 2022. Prepare a spreadsheet to determine all these pension items.
2. Prepare the required
3. Prepare a partial
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education