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At January 1, 2020, Sunland Corporation had plan assets of $256,500 and a defined benefit obligation of the same amount based on projected costs. During
At January 1, 2020, Sunland Corporation had plan assets of $256,500 and a defined benefit obligation of the same amount based on projected costs. During 2020, the current service cost was $28,500, the discount rate on the DBO and plan assets was 10%, actual return on plan assets was $30,800, contributions by Sunland were $21,000, benefits paid were $17.500, and the cost of past service benefits granted effective December 31, 2020, was $29,000. Prepare a pension work sheet for Sunland Corporation for 2020 assuming that Sunland follows IFRS. SUNLAND CORPORATION Pension Worksheet-2020 General Journal Entries Remeasurement (Gain) Loss (OCI) Annual Pension Expense Item $ $ Balance, 1/1/20 Dr. 28500 Service cost Net interest/finance cost -5150 Dr. Remeasurement gain on plan assets Item Remeasurement (Gain) Loss (OCI) Annual Pension Expense Balance, 1/1/20 $ $ Service cost Dr. 28500 Net interest/finance cost Remeasurement gain on plan assets -5150 Dr. Past service cost 29000 [ Contributions Benefits paid Expense entry $ 5150 57500 [ Contribution entry Annual Pension Expense Net Def. Benefit Liability Asset Cash $ $ 28500 Cr. i -2850 515 29000 Cra i 29001 21000 Dr. 2100 -17500 Dr. $ 57500 CE. 3500 Dr. Benefit Liability/ Asset ash Defined Benefit Obligation $ 0 Dr .: $ 256500 -28500 Dr. 28500 Dr. 25.50 1 5150 Dr .: 29000 Dr. 29000 21000 Dr. 21000 Dr. - 17500 Dr. 0 - 17500 0 Dr. i 3500 Dr. 0 Dr. 31350 Dr. Defined Benefit Obligation Plan Assets Dr. 4 $ 256500 Cr. + $ 256500 Dr. -28500 Dr. 4 28500 Cr + Dr. 0 Dr. 25650 Cr. 25550 Dr. 5150 Dr. i Dr. 5150 Dr. -29000 Dr. 29000 Dr. 1 Dr. 21000 Dr. i Dr. 21000 Dr. 3 Dr. 17500 Dr. -17500 Dr. Dr. 9 Dr. o Dr. 0 Dr. Dr. i Dr. 31350 322150 2900 Dr. Dr. Dr
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