Hiatt Toothpaste SA initiates a defined benefit pension plan for its 50 employees on January 1, 2019. The insurance company which administers the pension plan provided the following selected information for the years 2019, 2020, and 2021.

There were no balances as of January 1, 2019, when the plan was initiated. The actual return on plan assets was 10% over the 3-year period, but the discount (interest) rate was 13% in 2019, 11% in 2020, and 8% in 2021. The service cost component of net periodic pension expense amounted to the following: 2019, €60,000; 2020, €85,000; and 2021, €119,000. No benefits were paid in 2019, €30,000 of benefits were paid in 2020, and €18,500 of benefits were paid in 2021 (all benefits paid at end of year).

Instructions

(Round to the nearest euro.)

a. Calculate the amount of net periodic pension expense that the company would recognize in 2019, 2020, and 2021.

b. Prepare the journal entries to record net periodic pension expense, employer's funding contribution, and related pension amounts for the years 2019, 2020, and 2021.