The Following Data Relate to the Defined Benefit Pension Plan

question 35

Essay

The following data relate to the defined benefit pension plan of the Brotherhood Corp.for the years 2013-2015:

At December 31,2012,the books of Youngblood Corp.reflected a pension liability of $30,000.The fair value of pension fund assets at that date was $1,300,000.The pension fund is administered by an independent trustee.
(1)Prepare the summary journal entries relating to the pension plan that would be required on the books of Youngblood Corp.for 2013,2014,and 2015.
(2)Determine the balance of the prepaid/accrued pension cost account at December 31,2015.
(3)Compute the fair value of pension fund assets as of December 31,2015.

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Definitions:

Division of Labor

The separation of a work process into a number of tasks, with each task performed by a separate person or group, leading to increased efficiency.

Services

Economic activities that produce intangible goods or benefits, such as healthcare, education, banking, and entertainment, as opposed to tangible physical products.

The Wheel

A revolutionary invention enabling easier transportation and movement of goods, significantly impacting human civilization.

Years Ago

A phrase used to indicate a specific amount of time in the past relative to the present.