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Current Attempt in Progress On January 1, 2025, Sandhill Company has the following defined benefit pension plan balances. Projected benefit obligation Fair value of
Current Attempt in Progress On January 1, 2025, Sandhill Company has the following defined benefit pension plan balances. Projected benefit obligation Fair value of plan assets $4,555,000 4,250,000 The interest (settlement) rate applicable to the plan is 10%. On January 1, 2026, the company amends its pension agreement so th prior service costs of $508,000 are created. Other data related to the pension plan are as follows. 2025 2026 Service cost $151,000 $180,000 Prior service cost amortization -0- 90,000 Contributions (funding) to the plan 236,000 286,000 Benefits paid 203,000 275,000 Actual return on plan assets 255,000 257,000 Expected rate of return on assets 6% 8% Items Balance, Jan. 1, 2025 $ Service cost Interest cost Actual return Contributions Benefits Journal entry for 2025 Accumulated OCI, Dec. 31, 2024 Balance, Dec. 31, 2025 Additional PSC, 1/1/2026 Balance, Jan. 1, 2026 Annual Pension Expense Cash $ SANDHILL COMPANY Pension Worksheet-2025 and 2026 General Journal Entries OCI-Prior Service Cost $ $ OCI-Gain/ Loss $ Pension Asset/ Liability Pension Asset/ Liability < > Projected Benefit Memo Record Obligation Plan Assets $ Accumulated OCI, Dec. 31, 2024 Balance, Dec. 31, 2025 Additional PSC, 1/1/2026 Balance, Jan. 1, 2026 Service cost Interest cost Actual return Unexpected loss Amortization of PSC Contributions Benefits Journal entry for 2026 Accumulated OCI, Dec. 31, 2025 Balance, Dec. 31, 2026
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