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Sheridan Corporation is a privately owned company that uses ASPE. On January 1, 2020 Sheridan's financial records indicated the following information related to the company's
Sheridan Corporation is a privately owned company that uses ASPE. On January 1, 2020 Sheridan's financial records indicated the following information related to the company's defined benefit pension plan: Defined Benefit Obligation $1,370,000 Pension Plan Assets 1,520,000 Sheridan Corporation's actuary provided the following information on December 31, 2020: Current year service cost $86,000 Prior service cost, granted Jan 1, 2020 177,000 Employer contributions for the year 91,000 Benefits paid to retirees 27,000 Expected return on assets 5% Actual return on assets 6% Discount rate 5% Required: 1. Prepare a continuity schedule for defined benefit obligation for 2020 2. Prepare a continuity schedule for plan asset for 2020 3. Prepare pension related entries made by Sheridan Corporation for 2020. 4. Compare the plan's surplus or deficit at December 31,2020, with the amount reported on the December 31, 2020 balance sheet
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