Name: Eric Ciak Instructor: Ahmed Shaik Intermediate Accounting,


Question Description:

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I’ve attached my assignment can you please look over P20-1 and help me complete 20-2? This is my first time using this so I’m not sure if you just go ahead and complete the work or what. Thanks Eric Homework week 3 E.Ciak.xlsx Name: Eric Ciak Instructor: Ahmed Shaik Intermediate Accounting, 14th Edition by Kieso, Weygandt, and Warfield Date: Course: 05/22/13 Acct 557 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 agreement so that service costs of $620,000 9% On January 1, 2013, the company amends its pension are created. Other data related to the pension plan are as follows: 2012 $180,000 0 255,000 225,000 320,000 5% Service costs Prior service costs amortization Contributions (funding) to the plan Benefits paid Actual return on plan assets Expected rate of return on assets 2013 $195,000 97,000 305,000 300,000 515,000 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 Items 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 Annual Pension Expense Cash OCI – Prior Service Cost OCI Gain/Loss Pension Asset/ Liability 300000 Cr 150,000 Dr 450,000 Dr 252,000 Cr 240,000 Cr 348000 Dr 240,000 Cr Memo Record Projected Plan Benefit Assets Obligation 4,500,000 Cr 4,200,000 Dr 150,000 Cr 450,000 Cr 252,000 Dr 240,000 Dr 200,000 Dr 200,000 Cr 108,000 Cr 408,000 Cr 500,000 Dr 180,000 Dr 540,000 Dr 260,000 Cr 99,360 Cr 90,000 Dr. 4,900,000 Cr 500,000 Cr 5,400,000 Cr 180,000 Cr 540,000 Dr 4,492,000 Dr 260,000 Dr 99,360 Dr 90,000 Cr 285,000 Cr 280,000 Dr 450,640 Dr 285,000 Cr 410,000 Dr 99,360 Dr 99,360 Dr 1,082,360 5,840,000 Cr 4,757,000 Dr 674,360 410,000 Dr 285,000 Dr 280,000 Cr Area for calculations as desired 4,500,000-4,200,000=300,000 150,000+450,000-252,000=348,000; 348,000-240,000=108,000: 4,900,000+500,000=5,400,000: 5,400,000*.10= 540,000 :(4,492,000*.08) -260,000=99,360: 348,000+540,000-260,00-99,360+90,000=450,000: 5,400,000+180,000+540,000-280,000=5,840,000: 4,492,000+260,000=285,000280,00+280,000=4,757,000 : 450,000+410,00+99,360=959,360 : 959,360-285,000 (b) For 2013, prepare the journal entry to record pension-related amounts. Pension Expense (OCI) Prior Service Cost (OCI) Gain/loss Cash Pension Liabilitity 450,000 410,00 99,360 285,000 674,360 qattachments_f2e872877a05d8a64da9ba455ea1ebe34d64b1e3.xlsx, Problem 20-1, Page 1 of 1, 05/21/2013, 22:38:08 Read more

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