Account Balances Jan. 1, 2020 PBO balance, before PSC adjustment $45,000 Cr. Prior service cost (due to plan amendment on Jan. 1, 2020) 5,000 Dr. Plan Asset balance 52,500 Dr. Activity 2020 Service cost $32,500 Pension benefits paid Actual and expected return on plan assets 2,500 Cash funding (contributions) 25,000 Pension benefits paid to retirees Pension Amounts and Entries Pension Entries with a Charge in Funding Fund Balance Pension Worksheet a. Calculate interest cost assuming a discount rate of 8%. $ 0 b. Compute net pension expense. Assume that prior service cost will be amortized over a 10-year average remaining service period. Pension expense, 2020 $ 0 x c. Provide the 2020 entries for Mac Company related to the defined benefit pension plan. Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order. Date Account Name Dr. Cr. Jan. 1, 2020 OCI-Prior Service Costs 5,000 O V Projected Benefit Obligation OV 5,000 To record deferral of prior service costs Dec. 31, 2020 Pension Expense 0 X OV Plan Assets 2,500 OV OCI-Prior Service Costs 0 500 Projected Benefit Obligation OV O X To record pension expense Dec. 31, 2020 Plan Assets 25,000 O V Cash OV 25,000 To record plan funding