AC 302 Chapter 20 Problem Question 1

AC 302 Chapter 20 Problem Question 1
Name					Date			
Instructor					Course			
Intermediate Accounting 14th Edition by Kieso Weygandt and Warfield								
Primer on Using Excel in Accounting by Rex A Schildhouse								
								
P20-1 (2-Year Worksheet) On January 1, 2012, Harrington Company has the following defined benefit pension plan balances.								
	Projected benefits obligation			$4,500,000 				
	Fair value of plan assets			4,200,000 				
								
The interest (settlement) rate applicable to the plan is				10%	On January 1, 2013, the company amends its pension 			
agreement so that service costs of			$500,000 	are created.  Other data related to the pension plan are as follows:				
								
					2012	2013		
	Service costs				$150,000 	$180,000 		
	Prior service costs amortization				0 	90,000 		
	Contributions (funding) to the plan				240,000 	285,000 		
	Benefits paid				200,000 	280,000 		
	Actual return on plan assets				252,000 	260,000 		
	Expected rate of return on assets				6%	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						Amount	Amount	Amount
(a) Service cost		Amount					Amount	
(b) Interest cost		Amount					Amount	
(c) Actual return		Amount						Amount
(d) Contributions			Amount					Amount
(e) Benefits							Amount	Amount
Journal entry, 12/31/12		Formula	Formula	Formula	Formula	Formula	Formula	Formula
Accum OCI, 12/31/11								
Balance, Dec. 31, 2012						Formula	Formula	Formula
(f) Additional PSC				Amount			Amount	
January 1, 2013							Formula	
(g) Service cost		Amount					Amount	
(h) Interest cost		Formula					Formula	
(i) Actual return		Amount						Amount
(j) Unexpected loss		Formula			Amount			
(k) Amortization of PSC		Amount		Amount				
(l) Contributions			Amount					Amount
(m) Benefits							Amount	Amount
Journal entry, 12/31/13		Formula	Formula	Formula	Formula	Formula		
Accum OCI, 12/31/12				Amount	Amount			
Balance, Dec. 31, 2013				Formula	Formula	Formula	Formula	Formula
								
Area for calculations as desired								
Area for calculations as desired								
Area for calculations as desired								
								
								
(b) For 2013, prepare the journal entry to record pension-related amounts.								
		Account title			Amount			
		Account title			Amount			
		Account title			Amount			
		Account title				Amount		
		Account title				Amount