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    Pension

    Uploaded by

    Ratna Sari
    The document provides pension plan information for Binus Co. as of 12/31/18 and 12/31/19 including defined benefit obligations, past service costs, fair value of plan assets, pension expense, and contributions. It also provides discount rates for calculating obligations. For 2019, service cost, contributions, benefits paid, actual return on assets, and discount rates are given for another pension plan along with instructions to calculate ending balances and expense.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Pension

    Uploaded by

    Ratna Sari
    349 views2 pages
    The document provides pension plan information for Binus Co. as of 12/31/18 and 12/31/19 including defined benefit obligations, past service costs, fair value of plan assets, pension expense, and contributions. It also provides discount rates for calculating obligations. For 2019, service cost, contributions, benefits paid, actual return on assets, and discount rates are given for another pension plan along with instructions to calculate ending balances and expense.

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    accounting

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    The document provides pension plan information for Binus Co. as of 12/31/18 and 12/31/19 including defined benefit obligations, past service costs, fair value of plan assets, pension expense, and contributions. It also provides discount rates for calculating obligations. For 2019, service cost, contributions, benefits paid, actual return on assets, and discount rates are given for another pension plan along with instructions to calculate ending balances and expense.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    349 views2 pages

    Pension

    Uploaded by

    Ratna Sari
    The document provides pension plan information for Binus Co. as of 12/31/18 and 12/31/19 including defined benefit obligations, past service costs, fair value of plan assets, pension expense, and contributions. It also provides discount rates for calculating obligations. For 2019, service cost, contributions, benefits paid, actual return on assets, and discount rates are given for another pension plan along with instructions to calculate ending balances and expense.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    Selected Information about the pension plan of Binus Co.

    is as follows:
    12/31/18 12/31/19
    Defined benefit obligation €4,800,000 €5,020,000
    Past service costs (Plan amendment January 1, 2019) 500,000
    Fair value of plan assets 4,650,000 4,800,000
    Pension expense 1,000,000 1,420,000
    Contribution 985,000 1,350,000
    Discount rate (for year) 9% 8%

    Instructions
    (a) Calculate the pension asset / liability at December 31, 2019.
    (b) Prepare the entry for 2019 to record the pension expense and contribution.

    On January 1, 2019, Binus Co. had the following balances:


    Defined benefit obligation €3,600,000
    Fair value of plan assets 3,600,000

    Other data related to the pension plan for 2019:


    Service cost 157,500
    Contributions to the plan 229,500
    Benefits paid 225,000
    Actual return on plan assets 216,000
    Discount rate 6%

    Instructions
    (a) Determine the defined benefit obligation at December 31, 2019. There are no net gains
    or losses.
    (b) Determine the fair value of plan assets at December 31, 2019.
    (c) Calculate pension expense for 2019.
    (d) Prepare the journal entry to record pension expense and the contributions for 2019.
    Binus Corp. sponsors a defined-benefit pension plan for its employees. On January 1, 2019,
    the following balances related to this plan.

    Plan assets (fair value) £ 900,000


    Defined benefit obligation 1,200,000
    Pension asset/liability 300,000 Cr.
    As a result of the operation of the plan during 2019, the actuary provided the following
    additional data at December 31, 2019.

    Service cost for 2019 £ 150,000


    Actual return on plan assets in 2019 90,000
    Past service cost, effective Jan. 1 240,000
    Contributions in 2019 230,000
    Benefits paid retirees in 2019 140,000
    Discount rate 8%
    Average remaining service life of active employees 10 years

    Instructions

    (a) Compute pension expense for Binus Corp. for the year 2019 by preparing a pension
    worksheet.
    (b) Prepare the journal entry for pension expense.

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