Hw.121. Prepare the journal entries to record the prior service costs on January 1 and the related year-end adjusting entry on December 31 for the current year.General Journal InstructionsHow does grading work?1234DATEDec. 31GENERAL JOURNALJan. 1 Other Comprehensive Income: Prior Service CostAccrued/Prepaid Pension CostOther Comprehensive Income: Prior Service CostAccrued/Prepaid Pension Cost✓ACCOUNT TITLE✓✓POST. REF.DEBIT280,000.0020,000.00PAGE 1Score: 47/51CREDIT280,000.0020,000.00InstructionsAt the beginning of the current year, Willow Company adopts a pension plan and awards retroactive benefits to its employees. Willow's actuarycomputes these prior service costs to be $280,000. Willow amortizes the prior service costs by the straight-line method over the remaining 14-year service life of its active employees.Required:Prepare the journal entries to record the prior service costs and the related year-end adjusting entry for the current year.

Defined Benefit Pension Plan - A defined benefit pension plan is one in which the employer…

Instructions At the beginning of the current year, Willow Company adopts a pension plan and awards retroactive benefits to its employees. Willows computes these prior service costs to be $280,000. Willow amortizes the prior service costs by the straight-line method over the remai year service life of its active employees. Required: Prepare the journal entries to record the prior service costs and the related year-end adjusting entry for the current year.