P20-1 - 1 2012 Service cost 150,000 Dr Interest cost...

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P20-1 (2-Year Worksheet) On January 1, 2012, 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, 2013, 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 costs Prior service costs amortization Contributions (funding) to the plan Benefits paid Actual return on plan assets Expected rate of return on assets Your answer is correct. Prepare a pension worksheet for the pension plan for 2012 and 2013. (If answer is zero please enter 0, do not leave any fields blank.) Pension Worksheet-2012 and 2013 Items General Journal Entries Annual Pension Expense Cash
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Balance, Jan.
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Unformatted text preview: 1, 2012 Service cost 150,000 Dr. Interest cost 450,000 Dr. Actual return 252,000 Cr. Contributions 240,000 Cr. Benefits Journal entry for 2012 348,000 Dr. 240,000 Cr. Accum. OCI, 12/31/11 Balance, 12/31/12 Additional PSC, 1/1/2013 Balance, Jan. 1, 2013 Service cost 180,000 Dr. Interest cost 540,000 Dr. Actual return 260,000 Cr. Unexpected loss 99,360 Cr. Amortization of of PSC 90,000 Dr. Contributions 285,000 Cr. Benefits Journal entry for 2013 450,640 Dr. 285,000 Cr. Accum. OCI, 12/31/12 Balance, 12/31/13 Your answer is correct. For 2013, prepare the journal entry to record pension-related amounts. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.) Description/Account Pension expense OCI (Prior Service Cost) OCI (Gain/Loss) Pension asset/Liability Cash...
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P20-1 - 1 2012 Service cost 150,000 Dr Interest cost...

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