Comprehensive 2 Year Worksheet Hobbs Co

(Comprehensive 2-Year Worksheet) Hobbs Co. has the following defined-benefit pension plan balances on January 1, 2010.

Projected benefit obligation                            $4,600,000

Fair value of plan assets                                     4,600,000

The interest (settlement) rate applicable to the plan is 10%. On January 1, 2011, the company amends its pension agreement so that prior service costs of $600,000 are created. Other data related to the pension plan are:

(a) Prepare a pension worksheet for the pension plan in 2010.

(b) Prepare any journal entries related to the pension plan that would be needed at December 31, 2010.

(c) Prepare a pension worksheet for 2011 and any journal entries related to the pension plan as of December 31, 2011.

(d) Indicate the pension-related amounts reported in the 2011 financialstatements.

Comprehensive 2-Year Worksheet Hobbs Co. has the following

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