Question: (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

Contribution to the plan                                               240,000              285,000

Benefits paid                                                              200,000              280,000

Actual return on plans 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.