Question
P20-1 (2-Year Worksheet) On January 1, 2014, Harrington Company has the following defined benefit pension plan balances. Projected benefits obligation $4,500,000 Fair value of plan assets 4,200,000 The interest (settlement) rate applicable to the plan is 10% 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: 2014 2015 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% Instructions: (a) Prepare a pension worksheet for the pension plan for 2014 and 2015.
Explanation / Answer
b)
b) ?
Pension Expense 450,640 Other Comprehensive Income (PSC) 410,000 Other Comprehensive Income (G/L) 99,360 Cash 285,000 Pension Asset/Liability 675,000
