A.

Cooper 1

Aleshia Cooper
Tuesday, 13 March, 2014
Accounts 305 -01
Mr. Terrance Richards
Homework Questions: P: 20-1

Problem 20-1
HARRINGTON COMPANY
Pension Worksheet2014 and 2015
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, 2014 (300,000) (4,500,000) 4,200,000
(a) Service cost 150,000 (150,000)
(b) Interest cost 450,000 (450,000)
(c) Actual return (252,000) 252,000
(d) Contributions (240,000) 240,000
(e) Benefits 200,000 (200,000)
Journal entry,
12/31/14
348,000 (240,000) 0 0 (108,000)
Accum OCI, 12/31/13
Balance, Dec. 31, 2014 (408,000) (4,900,000) 4,492,000
(f) Additional PSC 500,000 (500,000)
January 1, 2015 (5,400,000)
(g) Service cost 180,000 (180,000)
(h) Interest cost 540,000 (540,000)
(i) Actual return (260,000) 260,000
(j) Unexpected loss (99,360) 99,360
(k) Amortization of
PSC
90,000 (90,000)
(l) Contributions (285,000) 285,000
(m) Benefits 280,000 (280,000)
Journal entry,
12/31/15
450,640 (285,000) 410,000 99,360 (675,000)
Accum OCI, 12/31/14 0 0
Balance, Dec. 31, 2015 410,000 99,360 (1,083,000) (5,840,000) 4,757,000

A. Cooper 2


DATE ACCOUNT Debit Credit

Pension Expense 450,640

Other Comprehensive Income (PSC) 410,000

Other Comprehensive Income (G/L) 99,360

Cash 285,000

Pension Asset/Liability 675,000