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ABC Corporation adopts acceptable accounting for its defined benefit pension plan on January 1, 2013, with the following beginning balances:

- Plan assets $380,000

- Projected benefit obligation $455,000

Instructions:

1. Prepare a pension worksheet presenting all 3 years pension balance activities. **This exercise should have a total of 3 pension worksheets**

2. Prepare the journal entries (from the worksheet) to reflect all pension plan transaction and events all December 31, for all years (2013, 2014 & 2015).

3. Indicate the pension-related amounts reports in the financial statements for 2015.

\begin{tabular}{|l|l|l|l|} \hline & 2013 & 2014 & 2015 \\ \hline Plan assets & & ? & ? \\ \hline Projected benefit obligation & & ? & ? \\ \hline Actual return on plan assets & $30,000 & $39,000 & $45,000 \\ \hline Amortization of prior service cost & & $55,600 & $71,800 \\ \hline Annual funding (contributions) & $86,000 & $90,000 & $198,000 \\ \hline Annual service cost & $35,000 & $45,000 & $30,000 \\ \hline Benefits paid & $28,000 & $29,400 & $39,000 \\ \hline Expected rate of return & 10% & 12% & 10% \\ \hline Market related value of plant assets & & & $580,000 \\ \hline Prior service cost (Plan amended, 1/1/2014) & & $190,000 & \\ \hline Projected benefit obligation established on December 31,2015 for change in actuarial assumptions & & & $710,000 \\ \hline Settlement rate (Interest costs) & 8% & 9% & 10% \\ \hline \end{tabular} Pension Worksheet Journal entry to record pension-related amounts. \begin{tabular}{|l|l|l|l|} \hline & 2013 & 2014 & 2015 \\ \hline Plan assets & & ? & ? \\ \hline Projected benefit obligation & & ? & ? \\ \hline Actual return on plan assets & $30,000 & $39,000 & $45,000 \\ \hline Amortization of prior service cost & & $55,600 & $71,800 \\ \hline Annual funding (contributions) & $86,000 & $90,000 & $198,000 \\ \hline Annual service cost & $35,000 & $45,000 & $30,000 \\ \hline Benefits paid & $28,000 & $29,400 & $39,000 \\ \hline Expected rate of return & 10% & 12% & 10% \\ \hline Market related value of plant assets & & & $580,000 \\ \hline Prior service cost (Plan amended, 1/1/2014) & & $190,000 & \\ \hline Projected benefit obligation established on December 31,2015 for change in actuarial assumptions & & & $710,000 \\ \hline Settlement rate (Interest costs) & 8% & 9% & 10% \\ \hline \end{tabular} Pension Worksheet Journal entry to record pension-related amounts

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