SheridanLimited sponsors a defined benefit pension plan for its employees, which it accounts for under ASPE. The following data relate to the operation of the plan for the year 2020:

1.The actuarial present value of future benefits earned by employees for services rendered in 2020 amounted to $55,400.

2.The company's funding policy requires a contribution to the pension trustee of $145,800for 2020.3.

As at January 1, 2020, the company had a defined benefit obligation for accounting purposes of $915,000. The fair value of pension plan assets was $630,000at the beginning of the year. The actual return on plan assets was $53,000, and the discount rate was9%.

4.No benefits were paid in 2020.

Determine the pension expense that should be recognized by the company in 2020.

Pension expense =$

Prepare the journal entries to record pension expense and the employer's payment to the pension trustee in 2020.(Credit account titles are automatically indented when the amount is entered.Do not indent manually.)

Year

Account Titles and Explanation

Debit

Credit

2020

select an account title to record pension expense

Pension Expense

Pension Contributions Payable

Net Defined Benefit Liability/Asset

Cash

Contributions

enter a debit amount

enter a credit amount

select an account title to record pension expense

Contributions

Pension Contributions Payable

Net Defined Benefit Liability/Asset

Cash

Pension Expense

enter a debit amount

enter a credit amount

(To record pension expense.)2020

select an account title to record contribution to the pension fund

Contributions

Net Defined Benefit Liability/Asset

Pension Contributions Payable

Pension Expense

Cash

enter a debit amount

enter a credit amount

select an account title to record contribution to the pension fund

Cash

Contributions

Pension Expense

Pension Contributions Payable

Net Defined Benefit Liability/Asset

enter a debit amount

enter a credit amount

(To record contribution to the pension fund.)

Determine the plan's surplus or deficit position and the balance of the Net Defined Benefit Liability/Asset account at January 1, 2020, and at December 31, 2020.

Plan's

select an option

surplus

deficit

$

enter a dollar amount

Balance of net defined benefit

select asset or liability

Asset

Liability

at January 1, 2020

$

enter a dollar amount

Balance of net defined benefit

select asset or liability

Asset

Liability

at December 31, 2020

$

enter a dollar amount

eTextbook and Media

Prepare the required disclosures for the 2020 financial statements.

SheridanLimited

(Partial) Income Statement

2020select an income statement item

Accrued Pension Cost

Pension Expense

Net Defined Benefit Liability

Cash

Pension Contributions Payable

Contributions

Net Defined Benefit Asset

$

enter a dollar amount

SheridanLimited

(Partial) Balance Sheet

2020select an opening section name

Long-term Liabilities

Long-term Assets

Liabilities

Shareholders' Equity

Fixed Assets

Assets

select a balance sheet item

Pension Expense

Net Defined Benefit Liability

Cash

Pension Contributions Payable

Contributions

Net Defined Benefit Asset

$

enter a dollar amount