(2-Year Worksheet) On January 1, 2014, Harrington Company has the following defined benefit pension plan balances. Projected benefit 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, 2015, 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. 2014 2015 Service cost $150,000 $180,000 Prior service cost amortization -0- 90,000 Contributions (funding) to the plan 240,000 285,000 Benefits 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 2014 and 2015.
(b) For 2015, prepare the journal entry to record pension-related amounts.