Question

Ivanhoe Corporation is a privately owned company that uses ASPE. On January 1, 2020 Ivanhoe’s financial...

Ivanhoe Corporation is a privately owned company that uses ASPE. On January 1, 2020 Ivanhoe’s financial records indicated the following information related to the company’s defined benefit pension plan:
Defined Benefit Obligation $1,340,000
Pension Plan Assets 1,490,000

Ivanhoe Corporation’s actuary provided the following information on December 31, 2020:
Current year service cost $83,000
Prior service cost, granted Jan 1, 2020 189,000
Employer contributions for the year 94,000
Benefits paid to retirees 26,000
Expected return on assets 5%
Actual return on assets 6%
Discount rate 5%
Prepare a pension worksheet for Ivanhoe Corporation for 2020.
General Journal Entries Memo Record
Annual Pension
Expense
Cash Net Defined Liability/
Asset
Defined Benefit
Obligation
Plan Assets
Balance, January 1, 2020

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Dr.Cr.

Cr.Dr.

Cr.Dr.

Dr.Cr.

Current Service Cost

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Dr.Cr.

Cr.Dr.

Cr.Dr.

Dr.Cr.

Past Service Cost

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Cr.Dr.

Dr.Cr.

Dr.Cr.

Dr.Cr.

Net Interest/Finance Cost

Dr.Cr.

Dr.Cr.

Dr.Cr.

Cr.Dr.

Dr.Cr.

Asset Remeasurement Gain/Loss

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Dr.Cr.

Dr.Cr.

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Employer Contributions to Pension Fund

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Dr.Cr.

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Benefits Paid to Retirees from Pension Fund

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Cr.Dr.

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Dr.Cr.

Dr.Cr.

Pension Expense Entry - 2020

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Dr.Cr.

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Dr.Cr.

Net Funding Entry

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Dr.Cr.

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Dr.Cr.

Dr.Cr.

Balance, December 31, 2020

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Dr.Cr.

Dr.Cr.

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