2017 2018 $150,000 $170,000 90,000 184,658 280,000 350,000 Service cost Prior service cost amortization -0- Contributions (funding) to the plan Benefits paid Actual return on plan assets Expected rate of return on assets 200,000 220,000 252,000 6% 8%
(Comprehensive 2-Year Worksheet) Hobbs Co. has the following defined benefit pension plan balances on January 1, 2017.
| Projected benefit obligation | $4,600,000 |
| Fair value of plan assets | 4,600,000 |
The interest (settlement) rate applicable to the plan is 10%. On January 1, 2018, the company amends its pension agreement so that prior service costs of $600,000 are created. Other data related to the pension plan are:
Check the below image for pension plan related details.
Instructions
(a) Prepare a pension worksheet for the pension plan in 2017.
(b) Prepare any
(c) Prepare a pension worksheet for 2018 and any journal entries related to the pension plan as of December 31, 2018.
(d) Indicate the pension-related amounts reported in the 2018 financial statements.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
