The Virgin Cola Companys memorandum records for its defined benefit plan show the following balances:

Fair value of plan asset. 1/1/20 $ 6,000,000

Benefit obligation 6,600,000

Unrecognized past service cost 400,000

The following have been gather for the year 2020:

2020 service cost $ 500,000

Discount rate 10%

Actual return on plan assets 300,000

Contributions made 1,000,000

Benefits paid 1,000,000

Actuarial loss on remeasurement of benefit obligation 100,000

Instructions:

1. Compute the following:
   1. amount of the defined benefit asset or liability)prepaid/accrued) at January 1, 2020
   2. Retirement benefit expense for 2020.
   3. Retirement benefit cost for 2020, to be shown on other comprehensive income.

1. 2. Prepare the journal entry to record the funding and its retirement benefit expense
   3. Determine the balance of the defined benefit asset or liability (prepaid/accrued) as of December 31, 2020.
   4. Reconcile the balance determined in 3 with the memorandum records of the company as of December 31, 2020.