You are the auditor of Oriole Inc., the Canadian subsidiary of a public multinational engineering company that offers a defined benefit pension plan to its eligible employees. Employees are permitted to join the plan after two years of employment, and benefits vest immediately. You have received the following information from the fund trustee for the year ended December 31, 2020: Discount rate 5% Rate of compensation increase 3% Defined Benefit Obligation Defined benefit obligation at January 1, 2020 $11,444,240 Current service cost 382,750 Interest cost 572,212 Benefits paid 698,238 Actuarial loss, end of period 573,387 Plan Assets Fair value of plan assets at January 1, 2020 8,638,360 Actual return on plan assets, net of expenses 1,086,180 Employer contributions 504,794 Employee contributions 73,520 Benefits paid 698,238 Other relevant information: 1. The net defined benefit liability on January 1, 2020, is $2,805,880. 2. Employee contributions to the plan are withheld as payroll deductions, and are remitted to the pension trustee along with the employer contributions. Part 1 Your answer is partially correct. Prepare a pension work sheet for the company. Assume IFRS is followed. Gen Annual Pension Expense Remeasurement (Gain) Loss (OCI) Items $ $ Balance, Jan. 1, 2020 (a) Service cost 382,750 Dr. (b) Net interest/finance cost 140,294 Dr. (c) Asset remeasurement gain 654,262 Cr. (d) Actuarial loss, liability 573,387 Dr. V (e) Employee contributions 73,520 Cr. (f) Benefits paid (g) Employer payment into fund Expense entry, 12/31/20 $ 80,875 Cr. $ 449,524 Dr. Net funding entry Balance, Dec. 31, 2020 Prepare a pension work sheet for the company. Assume IFRS is followed. Oriole Inc. Pension Work Sheet General Journal Entries Net Def. Ben. Liability/ Asset Cash $ 2,805,880 Cr. $ [ [ Dr. Dr. > ( [ Cr. 73,520 Dr. > 504,794 Cr. Dr. 368,649 Cr. - [ [ $ 5,488,358 Cr. Prepare a pension work sheet for the company. Assume IFRS is followed. Memo Record let Def. . Liability/ Asset Defined Benefit Obligation Plan Assets 305,880 Cr. $ 11,444,240 Cr. $ 8,638,360 Dr. 382,750 Cr. 572,212 Cr.V 431,918 Dr. 654,262 Dr. 573,387 Cr. V V V 698,238 Dr. V 698,238 Cr. V 504,794 Dr. V 368,649 Cr. V 188,358 Cr. V $ 11,700,964 Cr. . $ 7,864,174 Dr