2 On December 31, 2017, Harrington Company had the following defined benefit pension plan balances. Projected benefit obligation $ 4,900,000 Fair value of plan assets $ 4,490,000 Other data related to the pension plan are as follows: Expected rate of return on assets 8% 9 Interest (settlement) rate applicable to the plan 10% Amendment of plan agreement on January 1, 2018 11 Prior service costs created S 700,000 |Average remaining service period of employees 10 years 13 2018 15 Service cost 180,000 Contributions (funding) to the plan 885,000 Benefits paid 280,000 Actual return on plan assets 260,000 (a) Instructions: Prepare a pension worksheet for the pension plan for 2018. Do not show "cents" in your amounts. In the worksheet, all credit amounts should be shown in parentheses; all debit amounts should be shown without parentheses. All amounts in the worksheet should be referenced to the information available above and not to any amounts in the worksheet, except when calculating interest cost or Unexpected loss on Plan Assets. 24 Every cell should either be blank or have a non-zero number. Every number should be preceded by the dollar sign. HARRINGTON COMPANY Pension Workshoot-2018 General Journal Entries Momo Record Annual Pension Projected Pension OCI - Prior OCI - Asset/ Benefit 29 Items Expense Cash Service Cost Gain/Loss Liability Obligation Plan Assets Balance as on December 31, 2017 S 410,000 |$ (4,900,000) $ 4,490,000 Select from the following account names: Additional prior service cost, 1/1/2018 $ 180,000 180,000 Amortization of prior service cost Balance as on January 1, 2018 $ (5,080,000) Cash Interest cost Other Comprehensive Income (G/L) 35 Expected return on Plan Assets $ 260,000 S 260,000 Other Comprehensive Income (PSC) 36 Unexpected loss on Plan Assets Pension Asset or Liability Amortization of prior service cost $ 700,000 $ (700,000) Pension Expense Amortization of gain or loss Plan Assets Contributions to Plant Assets $ 805,000 S 805,000 Prior service cost36 Unexpected loss on Plan Assets Pension Asset or Liability 37 Amortization of prior service cost $ 700,000 $ (700,000) Pension Expense |Amortization of gain or loss Plan Assets 39 Contributions to Plant Assets $ 885,000 S 085,000 Prior service cost 40 Service cost 41 Journal entry for 2018 Unexpected gain 42 Unexpected loss 43 Balance as on December 31, 2018 44 45 (b) Prepare the journal entry to record the year-end adjustment for 2018 based on the above worksheet. 46 The debit part should be aligned with column C 47 and the credit part should be aligned with Debit Credit 48 column D. Pension Expense 49 Other Comprehensive Income (G/L) 50 Other Comprehensive Income (PSC) 51 Cash 52 Pension Asset or Liability 53 54 55