Rebek Corporation provides the following information about its defined benefit pension plan for the year 2020:
Current service cost……………………………………………….$ 235,000
Contribution to the plan……………………………………………..262,500
Past service cost, effective December 31, 2020……………..50,000
Actual return on plan assets……………………………………….160,000
Benefits paid……………………………………………………………..100,000
Net defined benefit liability at January 1, 2020……………400,000
Plan assets at January 1, 2020………………………………….1,600,000
Defined benefit obligation at January 1, 2020…………..2,000,000
Interest/discount rate on the DBO and plan assets……………10%
Rebek follows IFRS.
Instructions
Prepare a continuity schedule for 2020 for the defined benefit obligation.
a. Prepare a continuity schedule for 2020 for the plan assets.
b. Calculate pension expense for the year 2020.
c. Prepare all pension journal entries recorded by Rebek in 2020.
d. What pension amount will appear on Rebek’s SFP at December 31, 2020?
