A company adopts acceptable accounting for its defined benefit pension plan on J

Question

A company adopts acceptable accounting for its defined benefit pension plan on January 1, 2013, with the following beginning balances: plan assets $600,000; projected benefit obligation $650,000. Other data relating to 3 years’ operation of the plan are as follows: 2013 2014 2015 Annual service costs $44,000 $49,000 $56,000 Settlement rate 10% 10% 10% Expected rate 10% 10% 10% Actual Return on Plan Assets 62,000 70,000 70,000 Annual Funding (contributions) 50,000 50,000 50,000 Benefits Paid 25,000 30,000 40,000 Prior service cost (plan amended, 1/1/14) 0 180,000 0 Amortization of prior service costs 0 60,000 70,000 Instructions: (a) Prepare a pension worksheet presenting all 3 years’ pension balances and activities. (b) Prepare the journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31 of each year.

Explanation / Answer

following 2013 working prepare 2014,2015

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