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IFRS 20-8
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IFRS 20-8
The following defined pension data of Doreen Corp. apply to the year 2014.Defined benefit obligation, 1/1/14 (before amendment) 558,800 Plan assets, 1/1/14 548,900 Pension asset/liability 9,900 Cr. On January 1, 2014, Doreen Corp., through plan amendment,
grants past service benefits having a present value of 116,300 Discount rate 9 % Service cost 52,700 Contributions (funding) 60,300 Actual return on plan assets 49,401 Benefits paid to retirees 41,900
For 2014, prepare a pension worksheet for Doreen Corp. that shows the journal entry for pension expense and the year-end balances in the related pension accounts.
DOREEN CORP.
Pension Worksheet-2014 General Journal Entries Memo Record Items Annual
Pension
Expense Cash Pension
Asset/
Liability Projetced
Benefit
Obligation Plan
Assets Balance, Dec. 31, 2013 DebitCredit DebitCredit DebitCredit DebitCredit DebitCredit Prior service cost DebitCredit DebitCredit CreditDebit DebitCredit DebitCredit Balance, Jan. 1, 2014 DebitCredit DebitCredit DebitCredit DebitCredit DebitCredit Service cost DebitCredit DebitCredit DebitCredit DebitCredit DebitCredit Interest expense DebitCredit DebitCredit DebitCredit DebitCredit CreditDebit Interest revenue DebitCredit DebitCredit DebitCredit DebitCredit DebitCredit Contributions DebitCredit DebitCredit DebitCredit DebitCredit DebitCredit Benefits DebitCredit CreditDebit DebitCredit DebitCredit DebitCredit Journal entry for 2014 DebitCredit DebitCredit DebitCredit DebitCredit DebitCredit Balance, Dec. 31, 2014 DebitCredit DebitCredit DebitCredit DebitCredit DebitCredit
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Here is what I solved before, please modify the figures as per your question. Please let me know if you have further questions.
Doreen CORP.
Lodell Worksheet—2014
General Journal Entries
Memo Record
Items
Annual
Pension
Expense
Cash
OCI - Prior Service Cost
Pension
Asset/
Liability
Projected
Benefit
Obligation
Plan
Assets
Balance, January 1, 2013
$---------
$---------
$---------
$(13,800)
$(560,000)
$546,200
(a) Prior service cost
$---------
$---------
$120,000
$---------
$(120,000)
$---------
New balance, January 1, 2014
$---------
$---------
$---------
$---------
$(680,000)
$546,200
(b) Service cost
$58,000
$---------
$---------
$---------
$(58,000)
$---------
(c) Interest cost
$61,200
$---------
$---------
$---------
$(61,200)
$---------
(d) Actual return
$(52,280)
$---------
$---------
$---------
$---------
$52,280
(e) Amortization of PSC
$17,000
$---------
$(17,000)
$---------
$---------
$---------
(f) Contributions
$---------
$(65,000)
$---------
$---------
$---------
$65,000
(g) Benefits
$---------
$---------
$---------
$---------
$40,000
$(40,000)
Journal entry, December 31
$83,920
$(65,000)
$103,000
$(121,920)
$---------
$---------
Accumulated OCI, December 31, 2013
$---------
$---------
$---------
$---------
$---------
$---------
Balance, December 31, 2014
$---------
$---------
$103,000
$(135,720)
$(759,200)
$623,480
Interest cost = $560,000 + $120,000 = $680,000 × Settlement rate of 9% = $61,200.
Doreen CORP.
Lodell Worksheet—2014
General Journal Entries
Memo Record
Items
Annual
Pension
Expense
Cash
OCI - Prior Service Cost
Pension
Asset/
Liability
Projected
Benefit
Obligation
Plan
Assets
Balance, January 1, 2013
$---------
$---------
$---------
$(13,800)
$(560,000)
$546,200
(a) Prior service cost
$---------
$---------
$120,000
$---------
$(120,000)
$---------
New balance, January 1, 2014
$---------
$---------
$---------
$---------
$(680,000)
$546,200
(b) Service cost
$58,000
$---------
$---------
$---------
$(58,000)
$---------
(c) Interest cost
$61,200
$---------
$---------
$---------
$(61,200)
$---------
(d) Actual return
$(52,280)
$---------
$---------
$---------
$---------
$52,280
(e) Amortization of PSC
$17,000
$---------
$(17,000)
$---------
$---------
$---------
(f) Contributions
$---------
$(65,000)
$---------
$---------
$---------
$65,000
(g) Benefits
$---------
$---------
$---------
$---------
$40,000
$(40,000)
Journal entry, December 31
$83,920
$(65,000)
$103,000
$(121,920)
$---------
$---------
Accumulated OCI, December 31, 2013
$---------
$---------
$---------
$---------
$---------
$---------
Balance, December 31, 2014
$---------
$---------
$103,000
$(135,720)
$(759,200)
$623,480