Reference no: EM132573931

Question - Corporation is a privately owned company that uses ASPE. On January 1, 2020 Blue's financial records indicated the following information related to the company's defined benefit pension plan:

Defined Benefit Obligation $1,370,000

Pension Plan Assets 1,520,000

Corporation's actuary provided the following information on December 31, 2020:

Current year service cost $86,000

Prior service cost, granted Jan 1, 2020, 177,000

Employer contributions for the year 91,000

Benefits paid to retirees 27,000

Expected return on asset 5%

Actual return on assets 6%

Discount rate 5%

Required -

1. Prepare continuity schedule for defined benefit obligation for 2020.

2. Prepare continuity schedule for plan asset for 2020.

3. Prepare pension related entries made by blue Corporation for 2020.

4. Compare the plan's surplus or deficit at December 31, 2020, with the amount reported on the December 31, 2020 balance sheet.