ACC 537 Week 5 Textbook Problem P20-1 Cunningham/Harrington Company Click Here to Buy the Tutorial http://www.uophelp.com/ACC-537/product-19867-ACC-537-Week-5-TextbookProblem-P20-1-Cunningham-Harrington-Company For more course tutorials visit www.uophelp.com
P20-1. On Jan 1, 2014cunningham/Harrington company has the following defined benefit pension plan balances. Projected benefit obligation 4,500,000 Fair value of plan assets 4,200,000 The interest (settlement) rate applicable to the plan is 10%. On Jan 1, 2015 the company amends its pension agreement so that prior service costs of 500,00 are created. other data related to the pension plan are as follows. Year 2014 Service 150,000 Prior service cost amortization 0 Contribution (funding) to the plan 240,000 benefits paid 200,000 actual return on plan assets 252,000 expected rate of return on assets 6% Year 2015 Service cost 180,000 prior service cost amortization 90,000 contributions (funding) ti the plan 285,000 benefits paid 280,000 actual return on plan assets 260,000 expected rate of return on assets 8% A. prepare a pension worksheet for the pension plan for 2014 and 2015 B. for 2015 prepare the journal entry to record pension related amounts.