Question

Sheridan, Inc. received the following information from its pension plan trustee concerning the operation of the company's defined benefit pension plan for the year ended December 31, 2021: Projected benefit obligation Fair value of plan assets Accumulated benefit obligation Accumulated OCI-(PSC) January 1, 2021 $2,570,000 1.320,000 1.937,000 547,000 December 31, 2021 $2.920,000 1,670,000 2,627.000 303,500 The service cost component for 2021 is $143.500 and the amortization of prior service cost is $243,500. The company's actual funding of the plan in 2021 amounted to 5507,000. The expected return on plan assets and the settlement rate were both 9% Determine the pension expense to be reported in 2021. Pension expenses Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2021. (Credit account titles are automatically Indented when amount is entered. Do not indent manually Account Titles and Explanation Debit Credit

Answer 1

Answer-a-

Service cost	$143,500
Interest on project benefit obligation ($2,570,000*9%)	$231,300
Expected return on plan assets ($1,320,000*9%)	($118,800)
Amortization of prior service cost	$243,500
Pension expenses in 2021	$499,500

b-Journal entry

Date	Account title and explanation	Debit	Credit
	Pension expenses	$499,500
	Pension assets/ liabilities	$251,000
	Cash		$507,000
	Other comprehensive income (PSC)		$243,500