Gordon Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2020 and 2021.
|
2020 |
2021 |
||
Plan assets (fair value), December 31 |
$699,000 |
$849,000 |
||
Projected benefit obligation, January 1 |
700,000 |
800,000 |
||
Pension asset/liability, January 1 |
140,000 |
Cr. |
? |
|
Prior service cost, January 1 |
250,000 |
240,000 |
||
Service cost |
60,000 |
90,000 |
||
Actual and expected return on plan assets |
24,000 |
30,000 |
||
Amortization of prior service cost |
10,000 |
12,000 |
||
Contributions (funding) |
115,000 |
120,000 |
||
Accumulated benefit obligation, December 31 |
500,000 |
550,000 |
||
Interest/settlement rate |
9% |
9% |
Instructions
Compute pension expense for 2020 and 2021.
Prepare the journal entries to record the pension expense and the company's funding of the pension plan for both years.
Gordon Company sponsors a defined benefit pension plan. The following information related to the pension plan...
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