Pharoah Corporation provides the following information about its defined benefit pension plan for the year 2020:...

Pharoah Corporation provides the following information about its defined benefit pension plan for the year 2020:

Current service cost		$225,600
Contribution to the plan		263,100
Past service cost, effective December 31, 2020		25,600
Actual return on plan assets		160,000
Benefits paid		106,000
Net defined benefit liability at January 1, 2020		400,600
Plan assets at January 1, 2020		1,600,000
Defined benefit obligation at January 1, 2020		2,000,600
Interest/discount rate on the DBO and plan assets		10%

Pharoah follows IFRS.

QUESTIONS:

A) Prepare a continuity schedule for 2020 for the defined benefit obligation.

B) Prepare a continuity schedule for 2020 for the plan assets.

C) Calculate pension expense for the year 2020.

D) Prepare all pension journal entries recorded by Pharoah in 2020.

E) What pension amount will appear on Pharoah’s SFP at December 31, 2020?

Solutions

Expert Solution

Solution:

ekkarill92 answered 1 year ago

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