90.2K

Verified Solution

Link Copied!

P20-1 (2-Year Worksheet) On January 1, 2014, Harrington Company has the following defined benefit pension plan balances. Projected benefits obligation $4,485,000 Fair value of plan assets 4,240,000 The interest (settlement) rate applicable to the plan is agreement so that service costs of $494,000 10% On January 1, 2015, the company amends its pension are created. Other data related to the pension plan are as follows: Service costs Prior service costs amortization Contributions (funding to the plan Benefits paid Actual retum on plan assets Expected rate of retum on assets 2014 $148,000 0 244.000 200,000 254,400 6% 2015 $177,000 90.000 288.000 275,000 260.000 8% Instructions: (a) Prepare a pension worksheet for the pension plan for 2014 and 2015. HARRINGTON COMPANY Pension Worksheel 2014 and 2015 Generoumal Entries Annual Pension Expense Items OCI - Prior Service Cost Cash Memo Record Projected Plan Benefit Assets Obligation OCI - Gain/Loss Pension Asset/ Liability Balance, Jan. 1. 2014 (a) Service cost (b) Interest cost (c) Actual return (d) Contributions (e) Benefits Joumal entry, 12/31/14 Accum OCI. 12/31/13 Balance. Dec 31, 2014 (f) Additional PSC January 1, 2015 (a) Service cost (h) Interest cost () Actual retum Unexpected loss (k) Amortization of PSC (1) Contributions (m) Benefits Joumal entry. 12/31/15 Accum OCI, 12/31/14 Balance, Dec. 31. 2015 (b) For 2015, prepare the joumal entry to record pension-related amounts Pension Expanse OCI PSC Unexpected loss/Gain Cash Pension Asset liability

Answer & Explanation Solved by verified expert

See Answer