A corporation provides a defined benefit pension plan to its employees; the settlement rate is 8% the expected return on plan assets is 8%, during the year, the service cost was sh. 50,000; during year 2 service cost was sh.60, 000 contributions to the pension trust were sh. 70,000, the actual return on plan assets was sh.4, 000 and benefits of shs. 3,000 were paid to retirees; during year 3 service cost was sh.75, 000 contributions to the pension trust were sh. 55,000, the actual return on plan assets was sh. 9,680 and benefits of sh. 5, 80 were paid to retirees; during year 4 service cost was sh. 80,000 contributions to the pension trust were sh. 65,000, the actual return on plan assets was sh.14, 400 and benefits of sh. 9,400 were paid to retirees. Required: Make journal entries from the question. Create the ledger accounts for the information above.
A corporation provides a defined benefit pension plan to its employees; the settlement rate is 8% the expected return on plan assets is 8%, during the year, the service cost was sh. 50,000; during year 2 service cost was sh.60, 000 contributions to the pension trust were sh. 70,000, the actual return on plan assets was sh.4, 000 and benefits of shs. 3,000 were paid to retirees; during year 3 service cost was sh.75, 000 contributions to the pension trust were sh. 55,000, the actual return on plan assets was sh. 9,680 and benefits of sh. 5, 80 were paid to retirees; during year 4 service cost was sh. 80,000 contributions to the pension trust were sh. 65,000, the actual return on plan assets was sh.14, 400 and benefits of sh. 9,400 were paid to retirees.
Required:
- Make
journal entries from the question. - Create the ledger accounts for the information above.
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