At the end of 2020, the balances in the accounts related to the defined benefit pension plan of the Everett Company were as follows: Projected benefit obligation 875,000 Unrecognized prior service cost (remainder to be amortized over 12 years) 82,500 Unrecognized net loss 144,000 Plan assets (at fair value) 785,625 On 1/1/21, Everett amended the plan to provide an increased amount of pension benefits; the prior service cost resulting from this amendment was $52,000. At 1/1/21, the average remaining service life of employees expected to receive benefits was 12 years. The following information relates to the year 2021: Service Cost 131,625 Settlement rate 6% Expected rate of return on plan assets Plan contribution (at year-end) 5% 118,500 Benefit payments to retirees (at year-end) 101,250 In 2021, Everett's actual return on plan assets was $48,000. Everett follows a policy of recognizing gains/losses on a delayed basis using the "corridor approach". At the end of 2021, there was one change in the estimates and assumptions relating to computation of the projected benefit obligation, resulting in an increase in the PBO of $29,000. 

Required:

 а. Prepare Everett's pension worksheet, and prepare the journal entry that Everett would make to record the expense calculated. 

b. Which items will be reported on the financial statements for 2021 and where will they be reported? 

C. Prepare the pension note required for the 12/31/21 financial statements.

Answer rating: 100% (QA)

IFRS Year 2021 1 Pension Expense 160760 2 Journal entry Account title Explaination 2021 Debit Credit ... View the full answer