PROBLEM NO. 1 Mermade Corp. adopts the IFRS for its defined benefit retirement plan on January 1, 2021, with the following beginning balances: Fair Value of Plan Assets are Php 200,000.00 • Defined Benefit Obligation is Php is 250,000.00 The following are other information relating to the years 2021, 2022, and 2023: 2023 2022 2021 P26,000.00 P 19,000.00 P 16,000.00 10% 10% 20,000.00 16,000.00 14,000.00 Current service cost Discount rate Actual return on plan assets Contributions to the plan Benefits paid to retiree Other information: 1. The plan was amended on January 1, 2022 which resulted to a Past Service Cost of Php 160,000.00 2. On December 31, 2023, there were changes in the actuarial assumptions that establishes a defined benefit obligation as of December 31, 2023 in the amount of Php 520,000.00. Required: For each year (2021, 2022, and 2023), prepare a worksheet presenting the balances and the activities of the pension. Indicate in the worksheet whether the amount is a Debit/Debited (Dr) or a Credit/Credited (Cr). A partial worksheet for 2021 (with beginning balances) is shown below, for your reference: Mermade Corp. Pension Worksheet 2021 Items Balance, beg. Past service cost Adjusted balance Current Service Cost 10% 24,000.00 22,000.00 48,000.00 40,000.00 21,000.00 16,400.00 Interest expense Interest revenue Contributions Benefits Asset gain (loss) Liability gain (loss) Journal entry Balance end General Journal Entries Annual pension expense Cash OCI Pension asset/liability (net) *If applicable, you may revise (e.g. add items, columns, rows, etc) accordingly Memo Entries Defined benefit obligation 250,000 Cr Fair Value of Plan Assets 200,000 Dr
PROBLEM NO. 1 Mermade Corp. adopts the IFRS for its defined benefit retirement plan on January 1, 2021, with the following beginning balances: Fair Value of Plan Assets are Php 200,000.00 • Defined Benefit Obligation is Php is 250,000.00 The following are other information relating to the years 2021, 2022, and 2023: 2023 2022 2021 P26,000.00 P 19,000.00 P 16,000.00 10% 10% 20,000.00 16,000.00 14,000.00 Current service cost Discount rate Actual return on plan assets Contributions to the plan Benefits paid to retiree Other information: 1. The plan was amended on January 1, 2022 which resulted to a Past Service Cost of Php 160,000.00 2. On December 31, 2023, there were changes in the actuarial assumptions that establishes a defined benefit obligation as of December 31, 2023 in the amount of Php 520,000.00. Required: For each year (2021, 2022, and 2023), prepare a worksheet presenting the balances and the activities of the pension. Indicate in the worksheet whether the amount is a Debit/Debited (Dr) or a Credit/Credited (Cr). A partial worksheet for 2021 (with beginning balances) is shown below, for your reference: Mermade Corp. Pension Worksheet 2021 Items Balance, beg. Past service cost Adjusted balance Current Service Cost 10% 24,000.00 22,000.00 48,000.00 40,000.00 21,000.00 16,400.00 Interest expense Interest revenue Contributions Benefits Asset gain (loss) Liability gain (loss) Journal entry Balance end General Journal Entries Annual pension expense Cash OCI Pension asset/liability (net) *If applicable, you may revise (e.g. add items, columns, rows, etc) accordingly Memo Entries Defined benefit obligation 250,000 Cr Fair Value of Plan Assets 200,000 Dr
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 4E
Related questions
Question
Transcribed Image Text:PROBLEM NO. 1
Mermade Corp. adopts the IFRS for its defined benefit retirement plan on January 1, 2021, with the
following beginning balances:
Fair Value of Plan Assets are Php 200,000.00
Defined Benefit Obligation is Php is 250,000.00
The following are other information relating to the years 2021, 2022, and 2023:
2023
2022
2021
P26,000.00 P 19,000.00 P 16,000.00
10%
10%
10%
20,000.00
24,000.00 22,000.00
48,000.00 40,000.00
16,000.00
21,000.00
16,400.00
14,000.00
Current service cost
Discount rate
Actual return on plan assets
Contributions to the plan
Benefits paid to retiree
Other information:
1. The plan was amended on January 1, 2022 which resulted to a Past Service Cost of Php
160,000.00
2. On December 31, 2023, there were changes in the actuarial assumptions that establishes a
defined benefit obligation as of December 31, 2023 in the amount of Php 520,000.00.
Required: For each year (2021, 2022, and 2023), prepare a worksheet presenting the balances and the
activities of the pension. Indicate in the worksheet whether the amount is a Debit/Debited (Dr) or a
Credit/Credited (Cr).
A partial worksheet for 2021 (with beginning balances) is shown below, for your reference:*
Mermade Corp.
Pension Worksheet 2021
Items
Balance, beg.
Past service cost
Adjusted balance
Current Service
Cost
Interest expense
Interest revenue
Contributions
Benefits
Asset gain (loss)
Liability gain (loss)
Journal entry
Balance end
General Journal Entries
Annual
pension
expense
Cash
OCI
Pension
asset/liability
(net)
* If applicable, you may revise (e.g. add items, columns, rows, etc) accordingly
Memo Entries
Defined
benefit
obligation
250,000 Cr
Fair Value of
Plan Assets
200,000 Dr
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning