Sage Corporation is a privately owned company that follows ASPE. On December 31, 2019, Sage's financial records indicated the following information related to the company's defined benefit pension plan: Defined Benefit Obligation $7,649,200 Pension Plan Assets 7,298,100 On January 1, 2020, Sage acquired the operations of SZL Ltd. As one of the conditions of the purchase, Sage agreed that SZLs employees would be included in Sage's defined benefit pension plan and would be granted credit for the past service of SZLs employees. The actuary estimated the value of the prior service amount granted on January 1, 2020 to be $321,700. Sage's actuary provided the following information on December 31, 2020: Current year service cost $358,200 Employer contributions for the year 441,900 Benefits paid to retirees 171,600 Actuarial increase in pension obligations 128,000 Expected return on assets 6% Actual return on assets 5% Discount rate 6% Prepare a pension worksheet for Sage Corporation for the year ending December 31, 2020. General Journal Entries Memo Record Annual Pension Expense Cash Net Defined Liability Asset Defined Benefit Obligation Plan Assets Balance, January 1, 2020 ! -7649200 Cc 7290100 Dr. (a) Current Service Cost Dev 321790 G lol Past Service Cost 321200 C -350200 Cr IC) Net Interest: Finance Cost 137556 Drv 437886 Dr. id Asset Remeasurement Gain/Loss 128000 DEV -12000 Dr. Cr. le) Actuarial Gain Loss 364905 D- 364905 iti Employer Contributions to Pension i 441900 441900 Dr. Benents Paid to Retirees from Pension Fund i -1/1600 Dr. -171600 C Pension Expense Fotry-2020 559151 De 441900 D V 0 i Net Funding Entry 559181 441900 G 0 Bale December 31, 2020 -62001 Prepare the journal entry to record the pension expense for 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter Ofor the amounts.) Account Titles and Explanation Debit Credit Net Defined Benefit Liability or Asset 441900 Cash 441900 (To record pension expense) Pension Expense 559181 Net Defined Benefit Liability or Asset 559181 (To record payment to the pension fund) Your answer is partially correct. What is the funded status on December 31, 2020? Sage pension plan is underfunded by $ -662081 on December 31, 2020. e Textbook and Media List of Accounts