Instructor:
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
Fair value of plan assets
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:
Service costs
Prior service costs amortization
Contributions (funding) to the plan
Benefits paid
Actual return on plan assets
Expected rate of return on assets
Instructions:
(a) Prepare a pension worksheet for the pension plan for 2012 and 2013.
P20-2 Allison Co. has the following postretirement benefit plan balances on January 1, 2012.
Accumulated Postreitrement benefit obligation
Fair value of plan assets
The interest (settlement) rate applicable to the plan is 8% On January 1, 2013, the company amends the plan
so that prior service costs of $185 000 were created. Other data related to the pension plan are as follows:
Service costs
Prior service costs amortization
Contributions (funding) to the plan
Benefits paid
Actual return on plan assets
Expected rate of return on assets
Instructions:
(a) Prepare a worksheet for the postreitrement plan for 2012 & 2013.
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