Jackson Company adopts acceptable accounting for its defined benefit pension plan on January 1, 2024, with the following beginning balances: plan assets $200,000; projected benefit obligation $250,000. Other data relating to 3 years’ operation of the plan are as follows.

Instructions

a. Prepare a pension worksheet presenting all 3 years’ pension balances and activities.

b. Prepare the journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31 of each year.

c. Indicate the pension-related amounts reported in the financial statements for 2026.

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Annual service cost Settlement rate and expected rate of return Actual return on plan assets Annual funding (contributions) Benefits paid Prior service cost (plan amended, 1/1/25) Amortization of prior service cost Change in actuarial assumptions establishes a December 31, 2026, projected benefit obligation of: 2024 $16,000 10% 18,000 16,000 14,000 2025 $ 19,000 10% 22,000 40,000 16,400 160,000 54,400 2026 $ 26,000 10% 24,000 48,000 21,000 41,600 520,000