General journal entries memo record items cash

This preview shows page 5 - 7 out of 8 pages.

General Journal Entries Memo Record Items Cash Balance, Jan. 1, 2012 (300,000) (4,500,000) 4,200,000 (a) Service cost 150,000 (150,000) (b) Interest cost 450,000 (450,000) (c) Actual return (252,000) 252,000 (d) Contributions (240,000) 240,000 (e) Benefits 200,000 (200,000) Journal entry, 12/31/12 348,000 (240,000) 0 0 (108,000) Accum OCI, 12/31/11 Balance, Dec. 31, 2012 (408,000) (4,900,000) 4,492,000 (f) Additional PSC 500,000 (500,000) January 1, 2013 (5,400,000) (g) Service cost 180,000 (180,000) (h) Interest cost 540,000 (540,000) (i) Actual return (260,000) 260,000 (j) Unexpected loss (99,360) 99,360 (k) Amortization of PSC 90,000 (90,000) (l) Contributions (285,000) 285,000 (m) Benefits 280,000 (280,000) Journal entry, 12/31/13 450,640 (285,000) 410,000 99,360 (675,000) Accum OCI, 12/31/12 0 0 Balance, Dec. 31, 2013 410,000 99,360 (1,083,000) (5,840,000) 4,757,000 2012 Interest cost = $4,500,000 × 10% settlement rate = $450,000. 2013 Interest cost = $5,400,000 × 10% settlement rate = $540,000. Pension Expense 450,640 Other Comprehensive Income (PSC) 410,000 Other Comprehensive Income (G/L) 99,360 Cash 285,000 Pension Asset/Liability 675,000 Intermediate Accounting , 14 th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse P20-1 (2-Year Worksheet) On January 1, 2012, Harrington Company has the following defined benefit pension plan balances. (a) Prepare a pension worksheet for the pension plan for 2012 and 2013. Annual Pension Expense OCI - Prior Service Cost OCI - Gain/Loss Pension Asset/ Liability Projected Benefit Obligation Plan Assets 2013 Unexpected loss = ($4,492,000 × 8% expected return on assets in 2012) - $260,000 actual return on plan assets in 2013 = $99,360. (b) For 2013, prepare the journal entry to record pension-related amounts.
Image of page 5

Subscribe to view the full document.

557c0beb4507c9ce94fb59aca03a9d3bc170fc55.xlsx, Problem 20-1, Page 6 of 8, 03/29/2012, 01:32:39 Name: Date: Instructor: Course: Projected benefits 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, 2013, the company amends its pension agreement so that service costs of $500,000 are created. Other data related to the pension plan are as follows: 2012 2013 Service costs $150,000 $180,000 Prior service costs 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: HARRINGTON COMPANY Pension Worksheet—2012 and 2013 General Journal Entries Memo Record Items Cash Balance, Jan. 1, 2012 Amount Amount Amount (a) Service cost Amount Amount (b) Interest cost Amount Amount (c) Actual return Amount Amount (d) Contributions Amount Amount (e) Benefits Amount Amount Journal entry, 12/31/12 Formula Formula Formula Formula Formula Formula Formula Accum OCI, 12/31/11 Balance, Dec. 31, 2012 Formula Formula Formula (f) Additional PSC Amount Amount January 1, 2013 Formula (g) Service cost Amount Amount (h) Interest cost Formula Formula (i) Actual return Amount Amount (j) Unexpected loss Formula Amount (k) Amortization of PSC Amount Amount (l) Contributions Amount Amount (m) Benefits Amount Amount Journal entry, 12/31/13 Formula Formula Formula Formula Formula Accum OCI, 12/31/12 Amount Amount Balance, Dec. 31, 2013 Formula Formula Formula Formula Formula Area for calculations as desired Area for calculations as desired Area for calculations as desired Account title Amount Account title Amount Account title Amount Account title Amount Account title Amount Intermediate Accounting , 14 th Edition by Kieso, Weygandt, and Warfield
Image of page 6
Image of page 7
You've reached the end of this preview.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern