The following facts apply to the pension plan of Sheridan Inc. for the year 2020. Sheridan applies ASPE. Plan assets, January 1, 2020 $528,000 Defined benefit obligation, funding basis, January 1, 2020 427,000 Defined benefit obligation, accounting basis, January 1, 2020 528,000 Discount/interest rate 8.50% Annual pension service cost 40,600 Contributions 31,700 Actual return on plan assets 53,930 Benefits paid to retirees 33,500 Calculate pension expense for the year 2020, and provide the entries to recognize the expense and contributions for the year assuming that Sheridan has chosen the funding measure of its defined benefit obligation as its accounting policy choice. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Pension expense $enter Pension expense in dollars Date Account Titles and Explanation Debit Credit December 31, 2020 enter an account title to record pension expense Pension Contributions PayableCashNet Defined Benefit Liability/AssetPension ExpenseContributions enter a debit amount enter a credit amount enter an account title to record pension expense Pension Contributions PayableNet Defined Benefit Liability/AssetPension ExpenseContributionsCash enter a debit amount enter a credit amount (To record pension expense.) December 31, 2020 enter an account title to record contributions to the pension fund Pension Contributions PayableNet Defined Benefit Liability/AssetCashContributionsPension Expense enter a debit amount enter a credit amount enter an account title to record contributions to the pension fund ContributionsNet Defined Benefit Liability/AssetCashPension Contributions PayablePension Expense enter a debit amount enter a credit amount

The following facts apply to the pension plan of Sheridan Inc. for the year 2020. Sheridan applies ASPE. Plan assets, January 1, 2020 $528,000 Defined benefit obligation, funding basis, January 1, 2020 427,000 Defined benefit obligation, accounting basis, January 1, 2020 528,000 Discount/interest rate 8.50% Annual pension service cost 40,600 Contributions 31,700 Actual return on plan assets 53,930 Benefits paid to retirees 33,500 Calculate pension expense for the year 2020, and provide the entries to recognize the expense and contributions for the year assuming that Sheridan has chosen the funding measure of its defined benefit obligation as its accounting policy choice. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Pension expense $enter Pension expense in dollars Date Account Titles and Explanation Debit Credit December 31, 2020 enter an account title to record pension expense Pension Contributions PayableCashNet Defined Benefit Liability/AssetPension ExpenseContributions enter a debit amount enter a credit amount enter an account title to record pension expense Pension Contributions PayableNet Defined Benefit Liability/AssetPension ExpenseContributionsCash enter a debit amount enter a credit amount (To record pension expense.) December 31, 2020 enter an account title to record contributions to the pension fund Pension Contributions PayableNet Defined Benefit Liability/AssetCashContributionsPension Expense enter a debit amount enter a credit amount enter an account title to record contributions to the pension fund ContributionsNet Defined Benefit Liability/AssetCashPension Contributions PayablePension Expense enter a debit amount enter a credit amount

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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The following facts apply to the pension plan of Sheridan Inc. for the year 2020. Sheridan applies ASPE.

Plan assets, January 1, 2020		$528,000
Defined benefit obligation, funding basis, January 1, 2020		427,000
Defined benefit obligation, accounting basis, January 1, 2020		528,000
Discount/interest rate		8.50%
Annual pension service cost		40,600
Contributions		31,700
Actual return on plan assets		53,930
Benefits paid to retirees		33,500

Calculate pension expense for the year 2020, and provide the entries to recognize the expense and contributions for the year assuming that Sheridan has chosen the funding measure of its defined benefit obligation as its accounting policy choice. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Pension expense

$enter Pension expense in dollars

Date	Account Titles and Explanation	Debit	Credit
December 31, 2020	enter an account title to record pension expense Pension Contributions PayableCashNet Defined Benefit Liability/AssetPension ExpenseContributions	enter a debit amount	enter a credit amount
	enter an account title to record pension expense Pension Contributions PayableNet Defined Benefit Liability/AssetPension ExpenseContributionsCash	enter a debit amount	enter a credit amount
	(To record pension expense.)
December 31, 2020	enter an account title to record contributions to the pension fund Pension Contributions PayableNet Defined Benefit Liability/AssetCashContributionsPension Expense	enter a debit amount	enter a credit amount
	enter an account title to record contributions to the pension fund ContributionsNet Defined Benefit Liability/AssetCashPension Contributions PayablePension Expense	enter a debit amount	enter a credit amount
	(To record contributions to the pension fund.)

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Calculate pension expense if IFRS had been applied to this plan.

Pension expense

$enter Pension expense in dollars

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