Reference no: EM132602104

Alberta co. provides a defined benefit pension plan to its employees, and it account for it under IFRS. Dec 31, 2018 the plan reports:

Plan Assets $ 500,000

Defined benefit obligations $ 475,000

Dec 31, 2019 there is amendment to the pension plan result in credit for previous years of service for some of Alberta employees. The credit is recognized and credited to the obligation on the same day of the amendment. Other data relating to 2019 and 2020:

                                            2019                   2020

Past service cost                      $ 10,000           $ 0.00

Current service cost                    $ 55,000           $50,000

Contributions to the plan                 $ 98,125            $25,000

Actual return on plan assets                $ 60,000       $60,563

Benefit paid to retirees                      $ 25,000           $30,000

Discount and expected rate of return    10%                   10%

Required:

Using the continuity schedules OR the worksheet instead to answer the following questions:

Question 1: What is the plan funded status on Jan 1, 2019, Dec 31 2019 and Dec 31, 2020 ?

Question 2: What is the projected defined benefit obligation (DBO) at Dec 31, 2019 and Dec 31, 2020

Question 3: What is the Plan asset fair value at Dec 31 2019 and Dec 31 2020?

Question 4: Calculate the 2019 and 2020 pension expense.

Question 5: Prepare the journal entries to record the pension expenses and the plan contributions.