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Question 3 Groovy University provides a defined benefit pension for its employees. At the end of fiscal year 2020, which ended on December 31, the
Question 3 Groovy University provides a defined benefit pension for its employees. At the end of fiscal year 2020, which ended on December 31, the pension plan supplied Groovy with information about the pension, which is summarized in the following table: Opening assets, January 1 $2,100,000 + Funding 500,000 Expected return on assets 268,000 - Payments to retirees (40,000) Expected value, December 31 $2,828,000 Actual market value, December 31 2,410,000 Unexpected gain (loss) $(418,000) $3,000,000 Opening accrued benefit obligation, January 1 + Current service cost 250,000 + Interest 245,000 Payments to retirees (40,000) $3,455,000 Expected value, December 31 Actual obligation, December 31 2,964,000 Actuarial gain (loss) $491,000 Required: Provide the journal entries for Groovy's pension plan for 2020 (next page) (9 marks) 1
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