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Blossom Limited sponsors a defined benefit pension plan for its employees, which it accounts for under ASPE. The following data relate to the operation of
Blossom Limited sponsors a defined benefit pension plan for its employees, which it accounts for under ASPE. The following data relate to the operation of the plan for the year 2020: 1. 2. 3. The actuarial present value of future benefits earned by employees for services rendered in 2020 amounted to $55,000. The company's funding policy requires a contribution to the pension trustee of $145,100 for 2020. As at January 1, 2020, the company had a defined benefit obligation for accounting purposes of $900,000. The fair value of pension plan assets was $610,000 at the beginning of the year. The actual return on plan assets was $42,000, and the discount rate was 7%. No benefits were paid in 2020. 4. Determine the pension expense that should be recognized by the company in 2020. Pension expense $ e Textbook and Media Prepare the journal entries to record pension expense and the employer's payment to the pension trustee in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Year Account Titles and Explanation Debit Credit 2020 (To record pension expense.) 2020 (To record contribution to the pension fund.) Determine the plan's surplus or deficit position and the balance of the Net Defined Benefit Liability/Asset account at January 1, 2020, and at December 31, 2020. Plan's $ Balance of net defined benefit at January 1, 2020 $ Balance of net defined benefit at December 31, 2020 e Textbook and Media Prepare the required disclosures for the 2020 financial statements. Blossom Limited (Partial) Income Statement 2020 $ Blossom Limited (Partial) Balance Sheet 2020 $
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