Skywalker Inc. is a publicly-traded company that follows IFRS. On October 30, 2019, Skywalker's accounting records included the following information:

                              Defined benefit obligation $       1,410,712

                              Pension plan assets                                 $       1,536,846

Skywalker's actuary provided the following information about its defined benefit pension plan for the year ended October 30, 2020:

                              Current year service cost           $            84,843

                              Prior service cost, granted December 1, 2019 $          169,760

                              Employer contributions for the year $            92,240

                              Benefits paid to retirees         $            28,309

                              Expected return on assets             6%

                              Actual return on assets                   7%

                              Discount rate                                     6%

                                 Defined benefit obligation at October 30, 2020              $       1,714,332

Required:

a. Prepare a pension worksheet for Skywalker's pension plan for the year ended October 30, 2020.

1. b. Prepare the journal entries required by Skywalker for the pension plan in 2020.
2. c. Determine the funded status of the plan.
3. d. Prepare the necessary journal entries for the pension for 2020 if Skywalker followed ASPE instead. A pension worksheet is not required.

Answer rating: 100% (QA)

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