Reference no: EM133177963
Question - Ridley Corporation is a manufacturing company in the Caribbean. The company sponsors a defined benefit pension plan for its employees. The following balances relate to the plan for January 1, 2020. (amounts in thousands).
Defined benefit obligation $340,000
Plan assets (market-related value) $270,000
Pension asset/liability $ 70,000 Cr
OCI-Loss $ 39,000
On December 31, 2020, the actuary provided the following additional data as a result of the operation of the plan during the year.
Actual return on plan assets $27,000
Service cost $45,000
Benefits paid retirees $41,000
Contributions $65,000 Discount (interest) rate 7% Instructions.
Required -
(a) Prepare 2020 pension worksheet with supplementary schedules.
(b) Determine the amounts of the components of pension expense that should be recognized by the company in 2020.
(c) Prepare the journal entry to record pension expenses and the employer's contribution to the pension plan in 2020.
(d) Indicate the pension-related amounts that would be reported on the income statement and the statement of financial position for Ridley Corporation for the year 2020.
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