Your company has a defined benefit pension plan You have the following information about the plan At the end of last year, the plan 's projected benefit obligation and fair value of plan assets was $630,000 and $430,000, respectively The plan also had $93,800 of prior service costs as well as $189,...

Pensions The Company has a defined benefit pension plan the Plan The Plans projec ...

Your company has a defined-benefit pension plan. You have the following information about the plan: At the

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Your company has a defined-benefit pension plan. You have the following information about the plan:

At the end of last year, the plan's projected benefit obligation and fair value of plan assets was $630,000 and $430,000, respectively.
The plan also had $93,800 of prior service costs as well as $189,000 of unexpected net losses in accumulated other comprehensive income at the end of last year.
The plan incurred service cost of $38,500 during the year, and $27,500 should be amortized out of accumulated prior service costs this year based on the company's 8.3% settlement rate and 10-year average employee service life.

While the expected return rate on plan assets was 6.8%, the actual return rate was 6.7%.
While no benefits were paid out of the plan since no one has retired on the plan yet, the company already contributed $34,900 to the plan at the start of the year (and properly decreased the amount of the net pension liability as a result).

Prepare the notes to the financial statements using the information above.