MITEL inc is a high-tech company in Ottawa. OVer the past 5 years, competition has fierce for talent in the Ottawa regio

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MITEL inc is a high-tech company in Ottawa. OVer the past 5
years, competition has fierce for talent in the Ottawa region. In
order to attract and retain talent, they have a defined benefit
pension plan in order to differentiate themselves from their
competitors. During the year, MITEL hired a consultant to help with
some long-term strategies to retain talent. One of the
recommendations was to increase the retirement income for retirees
by 10% in order to align these benefits with the industry standard.
MITEL decided to implement this recommendation retrospectively with
an effective date of April 1, 2021. This resulted in an increase to
the defined benefit obligation by $120,000. On Jan 1, 2020, the
balance of the defined benefit obligation is $1,000,000 and the
pension fund asset total $880,000. The company made contributions
of $400,000 and $500,000 to the plan on July 1, 2020 and 2021
respectively. MITEL paid out benefits of $19,000 and $23,000
uniformly throughout the 2020 and 2021 years respectively. Per the
actuarial report, defined benefit obligation were $650,000 in 2020
and $710,000 in 2021 and the fair market value of the plan asset
were $800,000 in 2020 and $723,000 in 2021. Throughout the year,
employees earned pension benefits of $170,000 in 2020 and $180,000
in 2021. Interest rate on obligations and benefit that being
$200,000 for 2020 and 2021 (there is therefore no effect of an
asset ceiling)
a. Prepare the schedules (worksheet accounts) to reconcile the
opening and closing balance of pension assets and obligations for
2020 and 2021 (including the funding asset)
b. For the year 2020 and 2021, show the individual components,
which make up the pension expense
c. Prepare journal entries for MITEL INC 's pension in 2020 and
2021
d. Determine the balance of the net defined pension liability as
at December 31,2020 and 2021
e. PRovide effect of the pension on the comparative financial
statements (SFP, P&L, SCF, )for 2020 and 2021