Acc prepare a pension worksheet for the pension plan 2014

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Reference no: EM13815239

On January 1, 2014, Harrington Company has the following defined benefit pension plan balances.

Projected benefit obligation                     $4,500,000

Fair value of plan assets                             4,200,000

 

The interest (settlement) rate applicable to the plan is10%On January 1, 2015, the company amends its pension agreement so that service costs of$500,000 are created.  Other data related to the pension plan are as follows:

 

                                                                    2012                                  2013

Service costs                                            $150,000                        $180,000

Prior service costs amortization                        0                            90,000

Contributions (funding) to the plan         240,000                           285,000

Benefits paid                                             200,000                           280,000

Actual return on plan assets                     252,000                           260,000

Expected rate of return on assets              6%                                   8%

 

Requirements:

(A) Prepare a pension worksheet for the pension plan for 2014 and 2015.

(B) For 2015, prepare the journal entry to record pension-related amounts.

 

 

 

Reference no: EM13815239

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