Natalinna Consultants Inc. has had a defined benefit pension plan since January 1, 2014.

The following represents beginning balances as at January 1, 2018:

Market value of Plan Asset $1,105,300;Defined Benefit Obligation $1,355,000;AOCI: Loss of $312,000

Additional Information is as follows:

Current Service cost is $176,000 for 2018 and $181,000 for 2019.

Company Funding/Contribution is $162,000 for 2018 and $205,000 for 2019.Funding is made on December 31 of each year.

Actual return on assets is $39,600 for 2018 and $57,400 for 2019.

There is an increase in obligation for $38,000 due to changes in Actuarial assumptions at Dec 31, 2018.

There are payments made equal to $43,000 per year to retired employees in both 2018 and 2019.

Past service cost of $45,100 from plan amendment dated December 31, 2018: liability is increased because benefits were increased on a retroactive basis.

For 2018, the expected interest rate is 4%.For 2019, the expected interest rate is 4.5%.

Required:

1.Prepare a spreadsheet to determine all the pension items for both 2018 and 2019.

2.Prepare the required journal entries for both 2018 and 2019.

3.Prepare a partial balance sheet and a partial income statement for both 2018 and 2019.

4.Prepare the notes to the financial statements for 2018 only, recording only 8 items from list discussed in class.