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7. On December 31, the fair value of the bonds purchased
February 1 and July 1 are 95 and 93, respectively.
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ACC 537 Week 5 Textbook Problem P20 1 Cunningham
Company
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P20-1. On Jan 1, 2014cunningham/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 Jan 1,
2015 the company amends its pension agreement so that prior
service costs of 500,00 are created. other data related to the
pension plan are as follows. Year 2014 Service 150,000 Prior
service cost amortization 0 Contribution (funding) to the plan
240,000 benefits paid 200,000 actual return on plan assets 252,000
expected rate of return on assets 6% Year 2015 Service cost
180,000 prior service cost amortization 90,000 contributions
(funding) ti the plan 285,000 benefits paid 280,000 actual return
on plan assets 260,000 expected rate of return on assets 8% 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.
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ACC 537 Week 6 CA22 4 Analysis of Various Accounting
Changes and Errors (Solution and Presentation)
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