Write a solution to the following problem: Problem (2-Year Worksheet) On January 1, 2014, Harrington Company, accounting homework help

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Write a solution to the following problem from the text:

  • Problem (2-Year Worksheet) On January 1, 2014, Harrington Company has the following defined benefit pension plan balances.
    Projected benefit obligation $4,500,000
    Fair value of plan assets 4,200,000

    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 $500,000 are created. Other data related to the pension plan are as follows.

    2014

    		 2015
    Service cost $150,000 $180,000
    Prior service cost amortization -0- 90,000
    Contributions (funding) to the plan 240,000 285,000
    Benefits paid 200,000 280,000
    Actual return on plan assets 252,000 260,000
    Expected rate of return on assets 6% 8%

    Instructions

    • (a)Prepare a pension worksheet for the pension plan for 2014 and 2015.
    • (b)For 2015, prepare the journal entry to record pension-related amounts.

Please show all calculations for your solution. Solution can be in Excel using Template attached.

 
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