Sheffield Corporation is a privately owned company that follows ASPE. On December 31, 2019, Sheffields financial records indicated the following information related to the companys defined benefit pension plan:

Defined Benefit Obligation		$7,589,900
Pension Plan Assets		7,290,900

On January 1, 2020, Sheffield acquired the operations of SZL Ltd. As one of the conditions of the purchase, Sheffield agreed that SZLs employees would be included in Sheffields 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. Sheffields actuary provided the following information on December 31, 2020:

Current year service cost		$393,000
Employer contributions for the year		440,800
Benefits paid to retirees		182,700
Actuarial increase in pension obligations		128,600
Expected return on assets		6%
Actual return on assets		5%
Discount rate		6%

1) Prepare a pension worksheet for Sheffield Corporation for the year ending December 31, 2020. (see format example below, ignore the 2017 date)

2) Prepare the journal entry to record the pension expense for 2020.

3) What is the funded status on December 31, 2020?

Sheffield pension plan is _____________(underfunded/overfunded) by $____________ on December 31, 2020.

Prepare a pension worksheet for Blue Corporation for 2017. Annual Pension Expense General Journal Entries Net Defined Liability/ Cash Asset Memo Record Defined Benefit Obligation Plan Assets Balance, January 1, 2017 T (a) Current Service Cost Y (b) Past Service Cost (c) Net Interest/Finance Cost (d) Asset Remeasurement Gain/Loss y (e) Actuarial Gain/Loss (Not Applicable FOR 2017) Employer Contributions to Pension Fund Y (9) Benefits Paid to Retirees from Pension Fund Pension Expense Entry - 2017 Net Funding Entry Balance, December 31, 2017 Account Titles and Explanation Debit Credit (To record pension expense) (To record payment to the pension fund) Prepare a pension worksheet for Blue Corporation for 2017. Annual Pension Expense General Journal Entries Net Defined Liability/ Cash Asset Memo Record Defined Benefit Obligation Plan Assets Balance, January 1, 2017 T (a) Current Service Cost Y (b) Past Service Cost (c) Net Interest/Finance Cost (d) Asset Remeasurement Gain/Loss y (e) Actuarial Gain/Loss (Not Applicable FOR 2017) Employer Contributions to Pension Fund Y (9) Benefits Paid to Retirees from Pension Fund Pension Expense Entry - 2017 Net Funding Entry Balance, December 31, 2017 Account Titles and Explanation Debit Credit (To record pension expense) (To record payment to the pension fund)