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Laput Auditing

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Vencint Laran
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34 views

Laput Auditing

Uploaded by

Vencint Laran
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Invincible United Company adopted a noncontributory pension plan on January 1, 2021.

Invincible
decided to amortize past service costs for 20 years and to fund this cost by making equal payments to
the fund trustee at the end of each of the first 10 years. The normal pension cost is also funded fully at
the end of the year. The following pension plan data are available for 2021:

Normal Pension Costs 140,000


Past Service Costs
Funded 76,300
Amortized 64,223
Required: In its December 31,2021 Financial Statement, Invincible United should report differed pension
cost at?

Solution:

Funded Past Service Cost 76,300


Less: Amortized Service Cost (64,223)
Deferred Pension Cost December 31, 2021 12,077

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