In: Accounting
On January 1, 2013, Smith Co. had the following balances:
Projected benefit obligation 4,200,000
Fair value of plan assets 3,750,000
The settlement rate is 10%. Expected return on plan assets is 8%. Other data related to the pension plan for 2013 are:
Service cost 240,000
Amortization of prior service costs 54,000
Benefits paid 250,000
Actual return on plan assets 264,000
Amortization of net gain 18,000
Prepare all journal entries related to pensions for 2013