Sandhill Corporation sponsors a defined benefit pension plan for its 100 employees. On January 1, 2020, the companys actuary provided the following information:
Pension plan assets (fair value) $1,060,000
Defined benefit obligation 1,440,000
The actuary calculated that the present value of future benefits earned for employee services rendered in 2020 amounted to $213,200, the December 31, 2020 defined benefit obligation was $1,825,200, and the appropriate interest or discount rate was 11%. The plan assets generated a return of $80,600 during 2020. The company funded the 2020 current service cost as well as $106,600 of the past service costs recognized in a previous year; however, no benefits were paid during the year. Sandhill Corporation is a private company and applies ASPE.
Prepare a schedule that indicates what the plan's surplus or deficit is at December 31, 2020. X Defined Benefit Obligation, Jan. 1, 2020 Add Current Service Cost Add Interest Benefit Payments Liability (Loss)/Gain Contributions Defined Benefit Obligation, Jan. 1, 2020 Actuarial Valuation of DBO, Dec. 31, 2020 Contributions Benefit Payments Actual Return, 2020 LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT X Your answer is incorrect. Try again. Determine the pension expense that the company will recognize in 2020. X Pension expense Your answer is partially correct. Try again Prepare the journal entries to record pension expense and the company's funding of the pension plan in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit X 2020 Pension Expense (To record pension expense.) 2020 Cash Pension Contributions Payable (To record contributions to the pension fund.) Your answer is partially correct. Try again. Prepare the journal entries to record pension expense and the company's funding of the pension plan in 2020, assuming Sandhill applied IFRS. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 2020 Pension Expense X Net Defined Benefit Liability/Asset (To record pension expense.) X 2020 Remeasurement Loss (OCI) Cash (To record remeasurement loss.) x Pension Expense X Contributions (To record contributions to the pension fund.) Prepare a schedule that indicates what the plan's surplus or deficit is at December 31, 2020. X Defined Benefit Obligation, Jan. 1, 2020 Add Current Service Cost Add Interest Benefit Payments Liability (Loss)/Gain Contributions Defined Benefit Obligation, Jan. 1, 2020 Actuarial Valuation of DBO, Dec. 31, 2020 Contributions Benefit Payments Actual Return, 2020 LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT X Your answer is incorrect. Try again. Determine the pension expense that the company will recognize in 2020. X Pension expense Your answer is partially correct. Try again Prepare the journal entries to record pension expense and the company's funding of the pension plan in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit X 2020 Pension Expense (To record pension expense.) 2020 Cash Pension Contributions Payable (To record contributions to the pension fund.) Your answer is partially correct. Try again. Prepare the journal entries to record pension expense and the company's funding of the pension plan in 2020, assuming Sandhill applied IFRS. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 2020 Pension Expense X Net Defined Benefit Liability/Asset (To record pension expense.) X 2020 Remeasurement Loss (OCI) Cash (To record remeasurement loss.) x Pension Expense X Contributions (To record contributions to the pension fund.)
