Description of this paper

On January 1, 2012, Harrington Company has the fol...




On January 1, 2012, Harrington Company has the following defined benefit pension plan balances. Projected benefits obligation $5,600,000 Fair value of plan assets 6,400,000 The interest (settlement) rate applicable to the plan is 9%. On January 1, 2013, the company amends its pension agreement so that service costs of $620,000 are created. Other data related to the pension plan are as follows: 2012 2013 Service costs $180,000 $195,000 Prior service costs 0 97,000 amortization Contributions (funding) 255,000 305,000 to the plan Benefits paid 225,000 300,000 Actual return on plan 320,000 515,000 assets Expected rate of return 5% 8% on assets Instructions: (a) Prepare a pension worksheet for the pension plan for 2012 and 2013. HARRINGTON COMPANY Pension Worksheet?2012 and 2013 General Journal Entries Memo Record The 7 general journal entries are: "Annual Pension Expense" "Cash" "OCI - Prior Service Cost" "OCI - Gain/Loss" "Pension Asset/ Liability" "Projected Benefit Obligation" "Plan Assets" The below items include: Balance, Jan. 1, 2012 (a) Service cost (b) Interest cost (c) Actual return (d) Contributions (e) Benefits Journal entry, 12/31/12 Accum OCI, 12/31/11 Balance, Dec. 31, 2012 (f) Additional PSC January 1, 2013 (g) Service cost (h) Interest cost (i) Actual return (j) Unexpected loss (k) Amortization of PSC (l) Contributions (m) Benefits Journal entry, 12/31/13 Accum OCI, 12/31/12 Balance, Dec. 31, 2013 Area for calculations as desired (b) For 2013, prepare the journal entry to record pension-related amounts.


Paper#11386 | Written in 18-Jul-2015

Price : $25