Excel (2-Year Worksheet) On January 1, 2020, Harrington Company has the following defined benefit pension plan balances. Projected benefit obligation Fair value of plan assets The interest (settlement) rate applicable to the plan is 10%. On January 1, 2021, 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. n $4,500,000 4,200,000 Service cost Prior service cost amortization Contributions (funding) to the plan Benefits paid Actual return on plan assets Expected rate of return on assets 2020 $150,000 -0- 240,000 200,000 252,000 6% Instructions a. Prepare a pension worksheet for the pension plan for 2020 and 2021. 0031 prepare the journal entry to record pension-related amounts. 2021 $180,000 90,000 285,000 280,000 260,000 8%
Excel (2-Year Worksheet) On January 1, 2020, Harrington Company has the following defined benefit pension plan balances. Projected benefit obligation Fair value of plan assets The interest (settlement) rate applicable to the plan is 10%. On January 1, 2021, 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. n $4,500,000 4,200,000 Service cost Prior service cost amortization Contributions (funding) to the plan Benefits paid Actual return on plan assets Expected rate of return on assets 2020 $150,000 -0- 240,000 200,000 252,000 6% Instructions a. Prepare a pension worksheet for the pension plan for 2020 and 2021. 0031 prepare the journal entry to record pension-related amounts. 2021 $180,000 90,000 285,000 280,000 260,000 8%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:P20.1 (LO 1, 2, 3, 4) Excel (2-Year Worksheet) On January 1, 2020, Harrington Company has the
following defined benefit pension plan balances.
Projected benefit obligation
Fair value of plan assets
$4,500,000
4,200,000
The interest (settlement) rate applicable to the plan is 10%. On January 1, 2021, 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.
Service cost
Prior service cost amortization
Contributions (funding) to the plan
Benefits paid
Actual return on plan assets
Expected rate of return on assets
2020
$150,000
-0-
240,000
200,000
252,000
6%
Instructions
a. Prepare a pension worksheet for the pension plan for 2020 and 2021.
b. For 2021, prepare the journal entry to record pension-related amounts.
2021
$180,000
90,000
285,000
280,000
260,000
8%
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