ACCT 557 WEEK 3 HOMEWORK

ACCT 557 WEEK 3 
																								Name Date																						
	Instructor:					Course:																						
	Intermediate Accounting, 14th Edition by Kieso, Weygandt, and Warfield																											
																												
	On January 1, 2012, Harrington Company has the following defined benefit pension plan balances.																											
		Projected benefits 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:																							
																												
						2012	2013																					
		Service costs				$180,000 	$195,000 																					
		Prior service costs amortization				0 	97,000 																					
		Contributions (funding) to the plan				255,000 	305,000 																					
		Benefits paid				225,000 	300,000 																					
		Actual return on plan assets				320,000 	515,000 																					
		Expected rate of return on assets				5%	8%																					
																												
	Instructions:																											
	(a) Prepare a pension worksheet for the pension plan for 2012 and 2013.																											
																												
	HARRINGTON COMPANY																											
	Pension Worksheet—2012 and 2013																											
			General Journal Entries					Memo Record																				
	Items		"Annual
Pension
Expense"	Cash	OCI - Prior Service Cost	OCI - Gain/Loss	"Pension
Asset/
Liability"	"Projected
Benefit
Obligation"	"Plan
Assets"																			
	Balance, Jan. 1, 2012																											
	(a) Service cost																											
	(b) Interest cost																											
	(c) Actual return																											
	(d) Contributions																											
	(e) Benefits																											
	Journal entry, 12/31/12																											
	Accum OCI, 12/31/11																											
	Balance, Dec. 31, 2012																											
	(f) Additional PSC																											
	January 1, 2013																											
	(g) Service cost																											
	(h) Interest cost																											
	(i) Actual return																											
	(j) Unexpected loss																											
	(k) Amortization of PSC																											
	(l) Contributions																											
	(m) Benefits																											
	Journal entry, 12/31/13																											
	Accum OCI, 12/31/12																											
	Balance, Dec. 31, 2013																											
																												
	Area for calculations as desired																											
																												
																												
																												
																												
	(b) For 2013, prepare the journal entry to record pension-related amounts.