Pensions--Class Example & Worksheet Assignment Jackson Company adopts acceptable accounting for its defined-benefit pension plan on January 1, 2013, with the following beginning balances: Plan Assets: Projected Benefit Obligation: $200,000 $250,000 Other data relating to 3 years' operation of the plan are as follows. 2013 2014 2015 Annual service cost $16,000 $19,000 $26,000 Settlement rate and expected rate of return 10% 10% 10% Actual return on plan assets $18,000 $22,000 $24,000 Annual funding (contributions) $16,000 $40,000 $48,000 Benefits paid $14,000 $16,400 $21,000 Prior service cost (plan amended 1/1/14) $160,000 Amortization of prior service cost $54,400 $41,600 A change in actuarial assumptions established a 12/31/15 PBO of $520,000 Required: (1) Prepare the pension worksheet for 2015 using the same format shown in class. Make sure it is neat and follows the order we used in class Make sure to show any calculations necessary--meaning if it isn't listed in the information above, show the calculation (2) Prepare the journal entry to reflect recognition of pension expense for 2015 Assume recogition of pension expense and contributions occur simultaneously (from Keiso, Weygandt, and Warfield, 15e)