****NEED ASSISTANCE ON PROBLEM 2: JOURNAL ENTRIES****

On January 1, 2013 Baznik Company adopted a defined benefit pension plan. At that time, Baznik awarded retroactive benefits to certain employees. These retroactive benefits to certain employees. These retro benefits resultedin a prior service of $840000 on that date (which it did not fund). Baznik has zix participating employees who are expected to receive the retroactive benefits. Following is a schedule that identifies the participating employeees and their expected years of future service of January 1, 2013:

Employee	Expected Years of Future Service
A	1
B	3
C	4
D	5
E	5
F	6

Baznik decided to amortize the prior service cost to pension expense using the years-of-future-service method. THe following are the amounts of the components of Baznik's pension expense, in addition to the amortization of the prior service cost for 2013and 2014:

	2013	2014
Service Cost	328,000	355,000
Interest cost on projectd benefit obligation	75,600	111,924
Expected return on plan assets	-	58,960

Baznik contributed 589,000 and 581,000 to the pension fund at the end of 2013 and 2014 respectively. Required:1a. Prepare a set of schedules for the Baznik Company to determine the amortizationfraction for each year. Enter the amortization fraction as a fraction

Expected years of future service	# of years rendered 2013	# of service years rendered 2014	Number of service years rendered 2015	# years rendered 2016	# of years rendered 2017	# years rendered 2018
A 1	1
B 3	1	1	1
C 4	1	1	1	1
D 5	1	1	1	1	1
E 5	1	1	1	1	1
F 6	1	1	1	1	1	1
Total	6	5	5	4	3	1
Amortization Fraction	6/24	5/24	5/24	4/24	3/24	1/24

1b. Prepare a set of schedules for the Baznik Company to determine the amortization of the prior service cost.

	Total Prior Service	Amortization Fraction	Amortization to Increase Pension Exp	Remaining Prior Service Cost
2013	840000	6/24	210000	630000
2014	840000	5/24	175000	455000
2015	840000	5/24	175000	280000
2016	840000	4/24	140000	140000
2017	840000	3/24	105000	35000
2018	840000	1/24	35000

******2.Prepare all the Journal entries related to Baznik pension plan for 2013 and 2014 . For a compund transaction, if an amount box is not require an entry leave blank.

2013 1/1 Prior Benefit	Other Comprehensive Income: Prior to service cost	840000	-
	Accrued/prepaid Pension	-	840000
Dec. 31 Payment	Pension Expense	?	-
	Cash	-	589600
	Accrued Prepaid Pension	-	?
Amortize	Accrued/Prepaid Pension	?	-
	Other Comprehensive Income: Get Gain/Loss	-	?
2014 Dec 31 Payment	Pension Expense	-	?
	Cash	-	581000
	Accrued/Prepaid Pension	-	?
Dec31 Amortize	Accrued/Prepaid Pension	?	-
	Other Comprehensive Income: Prior Service Cost	-	?