On January 1, 2022, Harrington SA has the following defined benefit pension plan balances.

Defined benefit obligation ..................... €4,500,000
Fair value of plan assets .......................... 4,200,000

The interest rate applicable to the plan is 10%. On January 1, 2023, the company amends its pension agreement so that past service costs of €500,000 are created. Other data related to the pension plan are as follows.

Instructions

a. Prepare a pension worksheet for the pension plan for 2022 and 2023.

b. For 2023, prepare the journal entry to record pension-related amounts.

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2022 2023 €150,000 €180o,000 Contributions (funding) to the plan 240,000 285,000 Service cost Benefits paid 200,000 280,000 Actual return on plan assets 420,000 260,000