Rockwell Corporation received the following information from its actuary concerning the operation of the corporation’s defined benefit pension plan. January 1, 2019 December 31, 2019 $000 $000 Vested benefit obligation 1500 1900 Accumulated benefit obligation 1900 2730 Defined benefit obligation 3600 4700 Plan assets (fair value) 2320 3500 Discount (Interest) rate 10% Pension asset/liability 1280 ? Service cost for the year 2019 590 Contributions (funding in 2019) 980 Benefits paid in 2019 310 Instructions i. Compute the amount of the other comprehensive income (G/L) as of December 31, 2019. (Clearly show the computation for pension liability gains/losses and asset gains/losses) (Assume the January 1, 2019, balance was zero.) ii. Prepare a 2019 pension worksheet with supplementary schedules. iii. Prepare the journal entry or entries to record pension expense and the employer’s contribution to the pension trustee in 2019. iv. Indicate the amounts that would be reported on the Income Statement and the Statement of Financial Position for the year 2019.
Rockwell Corporation received the following information from its actuary concerning the
operation of the corporation’s defined benefit pension plan.
January 1, 2019 December 31, 2019 $000 $000
Vested benefit obligation 1500 1900
Accumulated benefit obligation 1900 2730
Defined benefit obligation 3600 4700
Plan assets (fair value) 2320 3500
Discount (Interest) rate 10%
Pension asset/liability 1280 ?
Service cost for the year 2019 590
Contributions (funding in 2019) 980
Benefits paid in 2019 310
Instructions
i. Compute the amount of the other comprehensive income (G/L) as of December 31, 2019.
(Clearly show the computation for pension liability gains/losses and asset gains/losses)
(Assume the January 1, 2019, balance was zero.)
ii. Prepare a 2019 pension worksheet with supplementary schedules.
iii. Prepare the
contribution to the pension trustee in 2019.
iv. Indicate the amounts that would be reported on the Income Statement and the Statement
of Financial Position for the year 2019.
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