Accounting Problem (Simple)

Instructions

Fill in the Blanks on Question 4 Part 1.png, Question 4 Part 2.png, and Question 4 Part 3.png

Part 1

Pharoah Limited sponsors a defined benefit pension plan, and follows ASPE. The corporation's actuary provides the following information about the plan (in thousands of dollars): January 1, 2020 December 31, 2020 Vested benefit obligation $1,400 $1,480 Defined benefit obligation, accounting basis 2,260 2,976 Plan assets (fair value) 1,400 2,205 Interest/discount rate 10% 10% Net defined benefit liability/asset 2 Past service cost, plan amendment, effective December 30, 2020 340 Service cost for the year 2020 280 Contributions (funding) 2020 700 Benefits paid in 2020 130 (Enter answers in thousands of dollars.) Calculate the actual return on the plan assets in 2020. Actual return on the plan assets in 2020 $ Calculate the amount of the net defined benefit liability/asset as at January 1, 2020. Net defined benefit , January 1, 2020 $Prepare a continuity schedule of the defined benefit obligation for 2020. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e g. (45).) DBO, January 1, 2020 Current Service Cost, 2020 Interest Cost Benefits Paid In 2020 Fast Service Cost, Dec. 30/20 Plan Amendment DBO, December 31, 2020 S Calculate the pension expense for 2020. separately identifying each amount making up the total expense (Enter negative amounts using either a negative sign preceding the number, eg. -45 or parentheses, e.g. (45).) Current service cost Net interest cost Asset remeasurement gain Past service cost Pension expense for 2020Prepare the pension-related entries made by the company during 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 2020 Pension Expense Net Defined Benefit Liability/Asset (To record pension expense.) 2020 Net Defined Benefit Liability/Asset Cash (To record contribution to the pension fund.) Compare the plan's surplus or deficit at December 31, 2020, with the amount reported on the December 31, 2020 balance sheet. Plan deficit v Net defined benefit liability , Dec. 31/20 $