TINSEL Company implemented a defined benefit plan on January 1, 2021. The following data are provided on December 31, 2021: Projected benefit obligation 103,000 Plan assets at fair value 78,000 Net periodic pension cost Employer's contribution 90,000 70,000

TINSEL Company implemented a defined benefit plan on January 1, 2021. The following data are provided on December 31, 2021: Projected benefit obligation 103,000 Plan assets at fair value 78,000 Net periodic pension cost Employer's contribution 90,000 70,000

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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Concept explainers

Employee Benefits

In an organization employees are the most important resource and most important asset. They can lead an organization to the sky or can be the reason for unsuccessful of business. Therefore, it is very much important that employees of an organization should be satisfied by the environment of the organization and most importantly with the salary, wages incentives, etc.

Question

What amount should be recorded as pension liability on December 31, 2021?

a. ₱ 45,000

b. ₱ 25,000

c. ₱ -0-

d. ₱ 20,000

TINSEL Company implemented a defined benefit plan on January 1, 2021. The following data are
provided on December 31, 2021:
Projected benefit obligation
103,000
Plan assets at fair value
78,000
Net periodic pension cost
90,000
Employer's contribution
70,000

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