I. Pension Worksheet

Clayton Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for 2022.

Projected Benefit Obligation, January 1, $907,000

Plan Assets, January 1 , $602,000

OCI - Prior Service Cost, January 1, $120,000 DR

OCI Gain/Loss, January 1, $103,000 DR

Service Cost, $53,000

Settlement Rate, 10%

Expected Rate of Return, 8%

Actual Return on Plan Assets, $65,000

Amortization of Prior Service Cost, $30,000

Annual Contributions, $94,000

Benefits Paid Retirees, $67,000

On January 1, Clayton amends the plan and grants prior service cost with a present value of $90,000.

Changes in actuarial assumptions resulted in an end-of-year projected benefit obligation of $950,000.

Average service life of all covered employees is 20 years.

Instructions:

(a) Prepare a pension worksheet for 2022. Use the worksheet provided for your answer.

(b) Prepare any journal entry/entries related to the pension plan as of December 31, 2022. Place your journal entry/entries at the bottom of the worksheet.

Please show calculations

thank you!