Actual Return Benefit Payments to Retirees on the Pension Pension Fund Year 2016 $350,000 Expense $720,400 $810,100 Contribution $675,000 $700,000 $725,000 $680,000 $320,000 $350,000 $350,000 2017 $695,700 $300,000 $410,000 2019 $790,000 $375,000 $505,000 1 Prepare the required journal entries for each year to record pension expense and pension contribution. Assume that the actual return on the pension fun equals the expected return in each year. Also, there is no prior service cost and no existing balance in deferred gain or loss related to the pension. 18 19 20 21 December 31, 2016 Account Debit Credit 22 23 24 25 26 27 28 29 30 December 31, 2017 Account 31 Debit Credit 32 33 34 35 36 37 Pension Expense and cost 37 38 39 December 31, 2018 Account 40 Debit Credit 41 42 43 44 45 46 47 December 31, 2019 Account 29 Debit Credit 2 4 6 . Compute the pension-related asset/liability balance at December 31, 2019. Assume that Goldman has pension-related liabilities in the Dr. (Cr.) Pension Related Asset/(Liability) Balance, January 1, 2016 2016 2017 2018 2019 Balance, December 31, 2019 58 59 70 71 #3 72 Determine the fair value of the pension fund at December 31, 2019. Assume that the fair value of the pension fun was $3,200,000 at January 1, 2016. 73 74 $3,200,000 75 76 T7 Fair value of the pension fund: January 1, 2016 Add funding: 2016-2019 2016 2017 2018 2019 78 79 80 81 82 83 34 Add return on the pension fund: 2016-2019 2016 2017 2018 2019 85 86 Pension Expense and cost Ready B T7 78 2016 2017 2018 2019 79 80 81 82 Add return on the pension fund: 2016-2019 2016 83 84 2017 85 2018 2019 86 87 88 89 90 Deduct Benefits paid: 2016 2017 2018 2019 91 92 93 94 Fair Value of the pension fund: December 31, 2019 95 96 97