Paisley Corp., a publicly accountable entity has initiated a defined benefit pension plan effective January 1, 2020.A review conducted by the actuaries has established a cost related to services already provided by the employees at $620,000 at January 1, 2020.At that time, the company funded the plan with a contribution of $350,000.

During 2020, the actuaries established a cost of $280,000 for services provided in the current year.The company's incremental borrowing rate averaged 7% during 2020 while the rate on high yielding corporate debt averaged 5.5%.As a new plan, there were no payments to retirees during 2020.

At the end of the year, the actuary reported a measurement of the defined benefit obligation at an amount of $1,025,000 and the trustee of the pension plan reported the actual return for the pension plan amounting to $24,500.

NOTE:In completing the required you may find the use of the pension worksheet to be beneficial however it is not part of the required.

REQUIRED

i.Prepare a continuity schedule of the Defined Benefit Obligation and the Plan Assets for 2020?.

ii.Calculate the funded status at December 31, 2020..

iii.Calculate the total pension charge for the year.

iv.Prepare the required journal entry(s) to account for the pension plan for year 2020?