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)

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)

Accepted Answer

Solution-                                                           Pharoah Corporation…