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. Prepare a continuity schedule for 2020 for the defined benefit obligation. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)Pharoah CorporationContinuity Schedule2020select an opening name Interest CostDefined Benefit Obligation, 12/31/20Benefits PaidDefined Benefit Obligation, 1/1/20Past ServiceCurrent Service Cost $enter a dollar amount select an item Defined Benefit Obligation, 12/31/20Past ServiceInterest CostBenefits PaidDefined Benefit Obligation, 1/1/20Current Service Cost enter a dollar amount select an item Current Service CostBenefits PaidInterest CostDefined Benefit Obligation, 12/31/20Defined Benefit Obligation, 1/1/20Past Service enter a dollar amount select an item Benefits PaidDefined Benefit Obligation, 1/1/20Past ServiceDefined Benefit Obligation, 12/31/20Interest CostCurrent Service Cost enter a dollar amount select an item Current Service CostInterest CostDefined Benefit Obligation, 12/31/20Past ServiceDefined Benefit Obligation, 1/1/20Benefits Paid enter a dollar amount select a closing name Defined Benefit Obligation, 1/1/20Past ServiceCurrent Service CostDefined Benefit Obligation, 12/31/20Interest CostBenefits Paid $enter a total amount Prepare a continuity schedule for 2020 for the plan assets. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)Pharoah CorporationContinuity Schedule2020select an opening name Actual Return on Plan AssetsBenefits PaidPlan Assets, 12/31/20Plan Assets, 1/1/20Contributions into Plan $enter a dollar amount select an item Actual Return on Plan AssetsContributions into PlanPlan Assets, 1/1/20Benefits PaidPlan Assets, 12/31/20 enter a dollar amount select an item Plan Assets, 1/1/20Actual Return on Plan AssetsPlan Assets, 12/31/20Benefits PaidContributions into Plan enter a dollar amount select an item Plan Assets, 12/31/20Contributions into PlanActual Return on Plan AssetsPlan Assets, 1/1/20Benefits Paid enter a dollar amount select a closing name Plan Assets, 1/1/20Plan Assets, 12/31/20Contributions into PlanBenefits PaidActual Return on Plan Assets $enter a total amount Calculate pension expense for the year 2020.Pension expense $enter Pension expense in dollars Prepare all pension journal entries recorded by Pharoah in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCreditDecember 31, 2020select an account title to record pension expense Pension ExpenseContributionsCashNet Defined Benefit Liability/AssetPension Contributions Payableenter a debit amountselect a credit amount select an account title to record pension expense CashContributionsPension ExpenseNet Defined Benefit Liability/AssetPension Contributions Payableenter a debit amountselect a credit amount (To record pension expense) December 31, 2020select an account title to record contributions paid Pension Contributions PayableContributionsPension ExpenseCashNet Defined Benefit Liability/Assetenter a debit amountselect a credit amount select an account title to record contributions paid CashPension Contributions PayablePension ExpenseNet Defined Benefit Liability/AssetContributionsenter a debit amountselect a credit amount (To record contributions paid)

Solution- Pharoah Corporation…

Answered: Pharoah Corporation provides the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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.

Prepare a continuity schedule for 2020 for the defined benefit obligation. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Pharoah Corporation Continuity Schedule 2020
select an opening name Interest CostDefined Benefit Obligation, 12/31/20Benefits PaidDefined Benefit Obligation, 1/1/20Past ServiceCurrent Service Cost		$enter a dollar amount
select an item Defined Benefit Obligation, 12/31/20Past ServiceInterest CostBenefits PaidDefined Benefit Obligation, 1/1/20Current Service Cost		enter a dollar amount
select an item Current Service CostBenefits PaidInterest CostDefined Benefit Obligation, 12/31/20Defined Benefit Obligation, 1/1/20Past Service		enter a dollar amount
select an item Benefits PaidDefined Benefit Obligation, 1/1/20Past ServiceDefined Benefit Obligation, 12/31/20Interest CostCurrent Service Cost		enter a dollar amount
select an item Current Service CostInterest CostDefined Benefit Obligation, 12/31/20Past ServiceDefined Benefit Obligation, 1/1/20Benefits Paid		enter a dollar amount
select a closing name Defined Benefit Obligation, 1/1/20Past ServiceCurrent Service CostDefined Benefit Obligation, 12/31/20Interest CostBenefits Paid		$enter a total amount

Prepare a continuity schedule for 2020 for the plan assets. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Pharoah Corporation Continuity Schedule 2020
select an opening name Actual Return on Plan AssetsBenefits PaidPlan Assets, 12/31/20Plan Assets, 1/1/20Contributions into Plan		$enter a dollar amount
select an item Actual Return on Plan AssetsContributions into PlanPlan Assets, 1/1/20Benefits PaidPlan Assets, 12/31/20		enter a dollar amount
select an item Plan Assets, 1/1/20Actual Return on Plan AssetsPlan Assets, 12/31/20Benefits PaidContributions into Plan		enter a dollar amount
select an item Plan Assets, 12/31/20Contributions into PlanActual Return on Plan AssetsPlan Assets, 1/1/20Benefits Paid		enter a dollar amount
select a closing name Plan Assets, 1/1/20Plan Assets, 12/31/20Contributions into PlanBenefits PaidActual Return on Plan Assets		$enter a total amount

Calculate pension expense for the year 2020.

Pension expense

$enter Pension expense in dollars

Prepare all pension journal entries recorded by Pharoah in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
December 31, 2020	select an account title to record pension expense Pension ExpenseContributionsCashNet Defined Benefit Liability/AssetPension Contributions Payable	enter a debit amount	select a credit amount
	select an account title to record pension expense CashContributionsPension ExpenseNet Defined Benefit Liability/AssetPension Contributions Payable	enter a debit amount	select a credit amount
	(To record pension expense)
December 31, 2020	select an account title to record contributions paid Pension Contributions PayableContributionsPension ExpenseCashNet Defined Benefit Liability/Asset	enter a debit amount	select a credit amount
	select an account title to record contributions paid CashPension Contributions PayablePension ExpenseNet Defined Benefit Liability/AssetContributions	enter a debit amount	select a credit amount
	(To record contributions paid)

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