2. Give the 2022 entries for MPS Company to record pension expense and funding. The 2022 records of MPS Company provided the following data related to its noncontributory, defined benefit pension plan (amounts in PO005): a. Accumulated benefit obligation (report of actuary) Beginning balance Service cost P3,000 1,200 240 Interest cost Pension benefits paid Ending balance Discount rate used by actuary, 8% b. Plan assets at fair value (report of trustee): Beginning balance Actual return on plan assets (400) P4,040 P2,400 168 Contributions Pension benefits paid Ending balance Expected long-term rate of return of plan assets, 7% 1,016 (400) Р3,192 c. January 1, 2022, balance of unrecognized prior service cost, gains and losses, and transaction cost, zero.
2. Give the 2022 entries for MPS Company to record pension expense and funding. The 2022 records of MPS Company provided the following data related to its noncontributory, defined benefit pension plan (amounts in PO005): a. Accumulated benefit obligation (report of actuary) Beginning balance Service cost P3,000 1,200 240 Interest cost Pension benefits paid Ending balance Discount rate used by actuary, 8% b. Plan assets at fair value (report of trustee): Beginning balance Actual return on plan assets (400) P4,040 P2,400 168 Contributions Pension benefits paid Ending balance Expected long-term rate of return of plan assets, 7% 1,016 (400) Р3,192 c. January 1, 2022, balance of unrecognized prior service cost, gains and losses, and transaction cost, zero.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
Section: Chapter Questions
Problem 7E
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