On January 1, 2014, Harrington Company has the following defined benefit pension plan balances.
On January 1, 2014, Harrington Company has the following defined benefit pension plan balances.Projected benefit obligationFair value of plan assets$4,518,0004,206,700The interest (settlement) rate applicable to the plan is 10%. On January 1, 2015, the companyamends its pension agreement so that prior service costs of $512,200 are created. Other datarelated to the pension plan are as follows.2014Service cost2015$163,100$188,900–0–99,300Contributions (funding) to the plan259,400304,900Benefits paid206,100292,700Actual return on plan assets252,402261,600Prior service cost amortizationExpected rate of return on assets6%8%Don’t show me this message again for the assignment1.Prepare a pension worksheet for the pension plan for 2014 and 2015.And2.For 2015, prepare the journal entry to record pension-related amounts. (Credit account titlesare automatically indented when amount is entered. Do not indent manually.)Account Titles andExplanationDebitCredit
