1) During the year, the City of Bunkies net pension liability increased by $95,000 and the employer contribution was $21,000 to the plan. Provide the journal entries for the G/W statement that would a) record the expense and b) record the contribution.

G/W
a)
b)

2) Provide journal entries for each of the additional items listed below. Include amortization entries, along with the initial entries.

a. Investment earnings on plan assets was $20,000 less than projected. These earnings were incorporated in the pension expense calculation previously recorded in part 1) above.

b. Actuarial assumption changes, not previously recognized, would increase both the total and net pension liabilities by $30,000. The remaining service lives of the affected pension plan members was 4 years.

c. The employer decreased the retiree plan benefits, resulting in an actuarial estimate of $100,000 subtracted from total pension liability.

What is the new pension expense?___________________