Cleary Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for 2022.
Projected Benefit Obligation, January 1, $860,000
Plan Assets, January 1 , $570,000
OCI - Prior Service Cost, January 1, $115,000 DR
OCI – Gain/Loss, January 1, $98,000 DR
Service Cost, $50,000
Settlement Rate, 10%
Expected Rate of Return, 8%
Actual Return on Plan Assets, $62,000
Amortization of Prior Service Cost, $28,000
Annual Contributions, $88,000
Benefits Paid Retirees, $64,000
On January 1, Cleary amends the plan and grants prior service cost with a present value of $86,000.
Changes in actuarial assumptions resulted in an end-of-year projected benefit obligation of $920,000.
Average service life of all covered employees is 20 years.
Instructions:
Prepare a pension worksheet for 2022. Use the worksheet provided for your answer.
Prepare any journal entry/entries related to the pension plan as of December 31, 2022. Place your journal entry/entries at the bottom of the worksheet.