Details of this Paper

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

Description

Solution


Question

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
SiteLock