(L01,2,3,4) EXCEL (2-Year Worksheet) On January 1, 2017, Harrington Company has the following defined benefit pension plan balances.

Projected benefi t obligation $4,500,000 Fair value of plan assets 4,200,000 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 $500,000 are created. Other data related to the pension plan are as follows.

2017 2018 Service cost $150,000 $180,000 Prior service cost amortization –0– 90,000 Contributions (funding) to the plan 240,000 285,000 Benefi ts paid 200,000 280,000 Actual return on plan assets 252,000 260,000 Expected rate of return on assets 6% 8%
Instructions

(a) Prepare a pension worksheet for the pension plan for 2017 and 2018.

(b) For 2018, prepare the journal entry to record pension-related amounts.