On January 1, 2012, Harrington Company has the following defined benefit pension plan balances. Projected benefit obligation

Question:

On January 1, 2012, Harrington Company has the following defined benefit pension plan balances.

Projected benefit obligation .......................$5,600,000

Fair value of plan assets ...............................6,400,000

The interest (settlement) rate applicable to the plan is 9%. On January 1, 2013, the company amends its pension agreement so that service costs of $620,000 are created. Other data related to the pension plan are as follows:


On January 1, 2012, Harrington Company has the following defined


Instructions:
(a) Prepare a pension worksheet for the pension plan for 2012 and 2013.
(b) For 2013, prepare the journal entry to record pension-relatedamounts.

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Related Book For  answer-question

Intermediate Accounting

ISBN: 978-0470587287

14th Edition

Authors: kieso, weygandt and warfield.

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