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Jones Company has the following defined benefit pension plan balances

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Question;On January 1, 2012, Jones Company has the following defined benefit pension plan balances. Accumulated Postreitrement benefit 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, 2014, the company amends the plan so that prior service costs of $620,000 were created. Other data related to the pension plan are as follows: 2012 2013 Service costs $180,000 $195,000 Prior service costs amortization 0 97,000 Contributions (funding) to the plan 255,000 305,000 Benefits paid 225,000 300,000 Actual return on plan assets 320,000 515,000 Expected rate of return on assets 5% 8% Instructions: (a) Prepare a pension worksheet for the pension plan for 2012 and 2013. (b) For 2013, prepare the journal entry to record pension-related amounts.;P20-2 Jones Co. has the following postretirement benefit plan balances on January 1, 2012. Accumulated Postreitrement benefit obligation $2,535,000 Fair value of plan assets 2,535,000 The interest (settlement) rate applicable to the plan is 8% On January 1, 2013, the company amends the plan so that prior service costs of $185,000 were created. Other data related to the pension plan are as follows: 2012 2013 Service costs $80,000 $87,000 Prior service costs amortization 0 13,000 Contributions (funding) to the plan 47,000 38,000 Benefits paid 41,000 43,000 Actual return on plan assets 200,000 155,000 Expected rate of return on assets 9% 7% Instructions: (a) Prepare a worksheet for the postreitrement plan for 2012 & 2013.(b) Prepare any journal entries related to the postretirement plan that would be needed at December 31, 2012.(c) Prepare any journal entries related to the postretirement plan as of December 31, 2013.

 

Paper#44754 | Written in 18-Jul-2015

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