The accountant for Serenity Ltd. has provided the following information for the company’s defined benefit pension plan for 2021: January 1, 2021 balances: Pension Liability $240,000 Other Comprehensive Income – Remeasurement losses $99,600 Defined benefit obligation $900,000 Plan assets $660,000 Additional information: Current service costs $120,000 Actual return on plan assets $21,000 Annual contribution to the plan $216,000 Benefits paid to retirees $14,400 Yield on high quality long-term corporate bonds 7% Defined benefit obligation, December 31, 2021 (per actuary) $1,025,000 Required: 1. Assuming Serenity is a publicly traded firm reporting under IFRS, complete the following: a. Calculate the pension expense, defined pension obligation, plan assets, and pension liability accounts at December 31, 2021, using a pension worksheet.
The accountant for Serenity Ltd. has provided the following information for the company’s defined benefit pension plan for 2021:
January 1, 2021 balances:
Pension Liability $240,000
Other Comprehensive Income – Remeasurement losses $99,600
Defined benefit obligation $900,000
Plan assets $660,000
Additional information:
Current service costs $120,000
Actual return on plan assets $21,000
Annual contribution to the plan $216,000
Benefits paid to retirees $14,400
Yield on high quality long-term corporate bonds 7%
Defined benefit obligation, December 31, 2021 (per actuary) $1,025,000
Required:
1. Assuming Serenity is a publicly traded firm reporting under IFRS, complete the following:
a. Calculate the pension expense, defined pension obligation, plan assets, and pension liability accounts at December 31, 2021, using a pension worksheet.
b. Prepare the necessary
c. Prepare a partial
d. Determine the funded status of the pension plan as at December 31, 2021.
Assuming Serenity is a private company reporting under ASPE, complete the following;
1. Calculate the pension expense for the pension plan for 2021.
2. Prepare the necessary journal entries related to the pension plan for 2021.
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