The following defined pension data of Eagle Homes Corporation apply to the year 2014. Projected benefit obligation,

Question:

The following defined pension data of Eagle Homes Corporation apply to the year 2014.

Projected benefit obligation, January 1, 2014

(before amendment) ...................$1,255,000

Plan assets, January 1, 2014 ................ 1,195,600

Pension liability, January 1, 2014 ............. 59,400

On January 1, 2014, Eagle Home Corp., through plan amendment,

grants prior service benefits having a present value of ..... 200,000

Settlement rate ..................... 6%

Service cost ....................... 69,000

Contributions (funding) ................... 85,000

Actual and expected return on plan assets ........... 43,610

Benefits paid to retirees ................... 52,000

Prior service cost amortization for 2014 ............ 25,000

Instructions

For 2014, prepare a pension worksheet for Eagle Homes that shows the journal entry for pension expense and the year-end balances in the related pension accounts.

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