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The following facts for Storm plc apply to the pension plan for 2019. 1. Annual service cost is 18,000 2. Discount Rate is 10% 3. Actual return on plan assets is $22,000 4. Annual funding contributions are $34,000 5. Benefits paid to retirees during the year are $20,500 6. Changes in actuarial assumptions establish the end of year defined benefit obligation at $285,000 Required: a. Prepare a pension worksheet using the following table and given the following opening balances. b. Prepare the necessary pension journal entries in accordance with IAS 19 pension Benefits for Storm plc for year ending 2019.

The following facts for Storm plc apply to the pension plan for 2019. 1. Annual service cost is 18,000 2. Discount Rate is 10% 3. Actual return on plan assets is $22,000 4. Annual funding contributions are $34,000 5. Benefits paid to retirees during the year are $20,500 6. Changes in actuarial assumptions establish the end of year defined benefit obligation at $285,000 Required: a. Prepare a pension worksheet using the following table and given the following opening balances. b. Prepare the necessary pension journal entries in accordance with IAS 19 pension Benefits for Storm plc for year ending 2019.

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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The following facts for Storm plc apply to the pension plan for 2019.
1. Annual service cost is 18,000
2. Discount Rate is 10%
3. Actual return on plan assets is $22,000
4. Annual funding contributions are $34,000
5. Benefits paid to retirees during the year are $20,500
6. Changes in actuarial assumptions establish the end of year defined benefit obligation at $285,000

Required:
a. Prepare a pension worksheet using the following table and given the following opening balances.

b. Prepare the necessary pension journal entries in accordance with IAS 19 pension Benefits for Storm plc for year ending 2019.

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