Question # 6 (20 marks) Sheridan Corporation is a privately owned company that uses ASPE. On January 1, 2020 Sheridan's financial records indicated the following information related to the company's defined benefit pension plan: Defined Benefit Obligation Pension Plan Assets $1,370,00 0 1,520,000 Sheridan Corporation's actuary provided the following information on December 31, 2020: $86,00 Current year service cost 0 Prior service cost, granted Jan 177,00 1, 2020 0 Employer contributions for the 91,000 year Benefits paid to retirees 27,000 Expected return on assets 5% Actual return on assets 6% Discount rate 5% Required: 1. Prepare a continuity schedule for defined benefit obligation for 2020 2. Prepare a continuity schedule for plan asset for 2020 3. Prepare pension related entries made by Sheridan Corporation for 2020. 4. Compare the plan's surplus or deficit at December 31,2020, with the amount reported on the December 31,2020 balance sheet Take Test: Mid Term Test Question Completion Status: Question 2 of 10 >> A Moving to another question will save this response. 7 points Saved a) Why should we not be satisfied with all favourable or all unfavourable variances? b) How can we tell that the process of variance analysis is working effectively? c) List three(3) actions that should be taken after the variances have be identified. Identify the people/positions WHO should be addressed. WHAT questions should be addressed, and reasons WHY variances are unacceptable Question # 6 (20 marks) Sheridan Corporation is a privately owned company that uses ASPE. On January 1, 2020 Sheridan's financial records indicated the following information related to the company's defined benefit pension plan: Defined Benefit Obligation Pension Plan Assets $1,370,00 0 1,520,000 Sheridan Corporation's actuary provided the following information on December 31, 2020: $86,00 Current year service cost 0 Prior service cost, granted Jan 177,00 1, 2020 0 Employer contributions for the 91,000 year Benefits paid to retirees 27,000 Expected return on assets 5% Actual return on assets 6% Discount rate 5% Required: 1. Prepare a continuity schedule for defined benefit obligation for 2020 2. Prepare a continuity schedule for plan asset for 2020 3. Prepare pension related entries made by Sheridan Corporation for 2020. 4. Compare the plan's surplus or deficit at December 31,2020, with the amount reported on the December 31,2020 balance sheet Take Test: Mid Term Test Question Completion Status: Question 2 of 10 >> A Moving to another question will save this response. 7 points Saved a) Why should we not be satisfied with all favourable or all unfavourable variances? b) How can we tell that the process of variance analysis is working effectively? c) List three(3) actions that should be taken after the variances have be identified. Identify the people/positions WHO should be addressed. WHAT questions should be addressed, and reasons WHY variances are unacceptable