Problem 20-1 (Part Level Submission) On January 1, 2014, Harrington Company has

Question

Problem 20-1 (Part Level Submission) On January 1, 2014, Harrington Company has the following defined benefit pension plan balances. Projected benefit obligation Fair value of plan assets $4,520,000 4,206,300 The interest (settlement) rate applicable to the plan is 10%. On January 1, 2015, the company amends its pension agreement so that prior service costs of $513,900 are created. Other data related to the pension plan are as follows. Service cost Prior service cost amortization Contributions (funding) to the plan Benefits paid Actual return on plan assets Expected rate of return on assets 2015 $162,000 $187,200 91,000 300,300 296,000 252,378 267,700 245,500 201,300 696 896

Explanation / Answer

Journal Entry for 2015

HARRINGTON COMPANY Pension Worksheet—2012 and 2013 General Journal Entries Memo Record Items Annual
Pension
Expense Cash OCI - Prior Service Cost OCI - Gain/Loss Pension
Asset/
Liability Projected
Benefit
Obligation Plan
Assets Balance, Jan. 1, 2012 -3,13,700 -45,20,000 42,06,300 (a) Service cost 1,62,000 -1,62,000 (b) Interest cost 4,52,000 -4,52,000 (c) Actual return -2,52,378 2,52,378 (d) Contributions -2,45,500 2,45,500 (e) Benefits 2,01,300 -2,01,300 Journal entry, 12/31/12 3,61,622 -2,45,500 0 0 -1,16,122 Accum OCI, 12/31/11 Balance, Dec. 31, 2012 -4,29,822 -49,32,700 45,02,878 (f) Additional PSC 5,13,900 -5,13,900 January 1, 2013 -54,46,600 (g) Service cost 1,87,200 -1,87,200 (h) Interest cost 5,44,660 -5,44,660 (i) Actual return -2,67,700 2,67,700 (j) Unexpected loss -92,530 92,530 (k) Amortization of PSC 91,000 -91,000 (l) Contributions -3,00,300 3,00,300 (m) Benefits 2,96,000 -2,96,000 Journal entry, 12/31/13 4,62,630 -3,00,300 4,22,900 92,530 -6,77,760 Accum OCI, 12/31/12 0 0 Balance, Dec. 31, 2013 4,22,900 92,530 -11,07,582 -58,82,460 47,74,878

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.