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P20.1 (LO2,4,5) (2-Year Worksheet) On January I, 2019, Harrington SA has the following defined benefit pension'...

P20.1 (LO2,4,5) (2-Year Worksheet) On January I, 2019, Harrington SA has the following defined benefit pension' plan balances.

Defined Benefit Obligation €4,500,000

Fair Value of plan assets 4,200,000

The interest rate applicable to the plan is 10%. On January 1, 2020, the company amends its pension agreement so that past service costs of €500,000 are created. Other data related to the pension plan are as follows.

2019 2020
Service Cost 150,000 180,000
Contributions to the plan 240,000 285,000
Benefits paid 200,000 280,000
Actual Return on plan assets 420,000 260,000

Instructions

a. Prepare a pension worksheet for the pension plan for 2019 and 2020.

b. For 2020, prepare the journal entry to record pension-related amounts.

Solutions

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