Reference no: EM132598671

NOELLA Consultants Inc. has had a defined benefit pension plan since January 1, 2014. The following represents beginning balances as at January 1, 2019:

Market value of Plan Asset $2,008,900;

Defined Benefit Obligation $2,340,000;

AOCI: Gain of $65,000

Additional Information is as follows:

1. Current Service cost is $221,000 for 2019 and $215,200 for 2020.
2. Company Funding/Contribution is $200,400 for 2019 and $212,700 for 2020. Funding is made on December 31 of each year.
3. Actual return on assets is $115,600 for 2019 and $117,400 for 2020.
4. There are payments made to retired employees equal to $63,900 in 2019 and for $90,300 in 2020.
5. Increase in obligation of $123,500 due to Past service cost from plan amendment dated December 31, 2019.
6. There is an increase in obligation for $64,510 due to changes in Actuarial assumptions at Dec 31, 2020.
7. The discount/interest rate is 6% for both years.

Required:

Question 1. Prepare spreadsheet to determine all the pension items for both 2019 and 2020.

Question 2. Prepare the required journal entries for both 2019 and 2020.

Question 3. Prepare partial balance sheet and a partial income statement for both 2019 and 2020.

Question 4. Prepare the notes to the financial statements for 2019 only.