Jackson Company adopts acceptable accounting for its defined benefit pension plan on January 1, 2014, with the following beginning balances: plan assets \($200\),000 and defined benefit obligation \($250\),000. Other data relating to 3 years’ operation of the plan are shown below.

Instructions

(a) Prepare a pension worksheet presenting all 3 years’ pension balances and activities.

(b) Prepare the journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31 of each year.

(c) Indicate the pension-related amounts reported in the financial statements for 2016.

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2014 2015 2016 Annual service cost Discount (interest) rate Actual return on plan assets $16,000 $19,000 $26,000 10% 10% 10% 20,000 22,000 24,000 Annual funding (contributions) 16,000 40,000 48,000 Benefits paid 14,000 16,400 21,000 Past service cost (plan amended, 1/1/15) 160,000 Change in actuarial assumptions establishes a December 31, 2016, defined benefit obligation of: 520,000