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Goodday Ltd., a public company, has a defined benefit pension plan and a 31 December year-end. The following information relates to the plan: Balances: Defined benefit obligation, end of 20X7 Pension plan assets, fair value, end of 20x7 SFP net defined benefit liability, end of 20X7 SFP accumulated OCI, pension, end of 20X7 Retained earnings, end of 20X7 20X8 earnings, prior to any pension expense Current service cost for 20X8, measured using the projected unit credit method New past service cost granted in 20X8, negative because benefits were reduced and the liability has declined Contributions made to the pension plan assets paid at end of 20X8 Actuarial gain in 20X8, negative because caused by higher anticipated future mortality rates and the liability has declined 5,255,000 4,816,000 439,000 cr. 68,400 dr. 8,625,400 cr. 4,200,000 cr. 604,300 (346,000) 440,000 (114,000) Actual earnings in the fund, reported by the pension fund trustee, including interest, dividends, and change in fair value 146,400 Benefits paid to pensioners from Pension fund assets paid at end of 20X8 Interest rate on long-term corporate bonds, end of 20X8 70,300 5% Required: Prepare the accounting for the defined benefit plan, using the spreadsheet approach.

Goodday Ltd., a public company, has a defined benefit pension plan and a 31 December year-end. The following information relates to the plan: Balances: Defined benefit obligation, end of 20X7 Pension plan assets, fair value, end of 20x7 SFP net defined benefit liability, end of 20X7 SFP accumulated OCI, pension, end of 20X7 Retained earnings, end of 20X7 20X8 earnings, prior to any pension expense Current service cost for 20X8, measured using the projected unit credit method New past service cost granted in 20X8, negative because benefits were reduced and the liability has declined Contributions made to the pension plan assets paid at end of 20X8 Actuarial gain in 20X8, negative because caused by higher anticipated future mortality rates and the liability has declined 5,255,000 4,816,000 439,000 cr. 68,400 dr. 8,625,400 cr. 4,200,000 cr. 604,300 (346,000) 440,000 (114,000) Actual earnings in the fund, reported by the pension fund trustee, including interest, dividends, and change in fair value 146,400 Benefits paid to pensioners from Pension fund assets paid at end of 20X8 Interest rate on long-term corporate bonds, end of 20X8 70,300 5% Required: Prepare the accounting for the defined benefit plan, using the spreadsheet approach.

Intermediate Accounting: Reporting And Analysis
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 3P
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Goodday Ltd., a public company, has a defined benefit pension plan and a 31 December year-end. The following information relates to the plan: Balances: Defined benefit obligation, end of 20X7 Pension plan assets, fair value, end of 20x7 SFP net defined benefit liability, end of 20X7 SFP accumulated OCI, pension, end of 20X7 Retained earnings, end of 20X7 20X8 earnings, prior to any pension expense Current service cost for 20X8, measured using the projected unit credit method New past service cost granted in 20X8, negative because benefits were reduced and the liability has declined Contributions made to the pension plan assets paid at end of 20X8 Actuarial gain in 20X8, negative because caused by higher anticipated future mortality rates and the liability has declined 5,255,000 4,816,000 439,000 cr. 68,400 dr. 8,625,400 cr. 4,200,000 cr. 604,300 (346,000) 440,000 (114,000) Actual earnings in the fund, reported by the pension fund trustee, including interest, dividends, and change in fair value 146,400 Benefits paid to pensioners from Pension fund assets paid at end of 20X8 Interest rate on long-term corporate bonds, end of 20X8 70,300 5% Required: Prepare the accounting for the defined benefit plan, using the spreadsheet approach.
Transcribed Image Text:Goodday Ltd., a public company, has a defined benefit pension plan and a 31 December year-end. The following information relates to the plan: Balances: Defined benefit obligation, end of 20X7 Pension plan assets, fair value, end of 20x7 SFP net defined benefit liability, end of 20X7 SFP accumulated OCI, pension, end of 20X7 Retained earnings, end of 20X7 20X8 earnings, prior to any pension expense Current service cost for 20X8, measured using the projected unit credit method New past service cost granted in 20X8, negative because benefits were reduced and the liability has declined Contributions made to the pension plan assets paid at end of 20X8 Actuarial gain in 20X8, negative because caused by higher anticipated future mortality rates and the liability has declined 5,255,000 4,816,000 439,000 cr. 68,400 dr. 8,625,400 cr. 4,200,000 cr. 604,300 (346,000) 440,000 (114,000) Actual earnings in the fund, reported by the pension fund trustee, including interest, dividends, and change in fair value 146,400 Benefits paid to pensioners from Pension fund assets paid at end of 20X8 Interest rate on long-term corporate bonds, end of 20X8 70,300 5% Required: Prepare the accounting for the defined benefit plan, using the spreadsheet approach.
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