ABC Corporation provides a defined benefit pension plan for its employees. A combination adjusting entry should be made to correctly account for this type of pension plan given the following items of information for the 2014 plan year, including the recording of pension expense and the employer's contribution to the pension plan in 2014.

Pension asset/liability (January 1)			$0
Actual return on plan assets			$40,000
Expected return on plan assets			$20,000
Contributions (funding) in 2014			$37,000
Fair value of plan assets (December 31)			$75,000
Settlement rate			10%
Projected benefit obligation (January 1)			$0
Service cost			$60,000
Benefits paid in 2014			$0

*For purposes of financial statement presentation, consider Pension Expense as an operating item and any resulting Pension Asset/Liability as long-term in nature.

This is what I have so far:

Dr. Pension expense $40,000

Dr. Pension related asset $17,000

Cr. Cash $35,000

Cr. Other comprehensive income $22,000

Is this correct?

On December 31, 2014, ABC Corporation issued 1,000 shares of restricted stock to its Chief Financial Officer. ABC stock had a fair value (closing market price) of $10 per share on December 31, 2014. Additional information is as follows:

a. The service period related to the restricted stock is 2 years.

b. Vesting occurs if the CFO stays with the company for a two-year period.

c. The par value of the common stock is $3 per share.

Make the appropriate accounting entry as of the grant date, 12/31/14. Note: use the alternative method as described in your textbook for deferred compensation.

I came up with the following calculation but don’t know how to journalize:

1,000*$3 = 3,000 common stock

1,000*$7= 7,000 additional PIC