Baron Company adopted a defined benefit pension plan on January 1, 2015. The following information pertains to the pension plan fo 2017: 2016 2017 Service cost $150,000 $160,000 Projected benefit obligation (1/1) 112,500 271,500 Plan assets (1/1) 112,500 276,500 Company contribution (funded 12/31) 155,000 170,000 Discount rate 8% 8% Expected long-term (and actual) rate of return on plan assets 8% 8% There are no other components of Baron's pension expense. 1 2 3 Required: 1. Compute the amount of Baron's pension expense for 2016 and 2017. 2. Prepare the journal entries to record the pension expense for 2016 and 2017. DATE Dec. 31 Pension Expense ACCOUNT TITLE Accrued/Prepaid Pension Cost DATE Cash 1 Dec. 31 Pension Expense 2 3 GENERAL JOURNAL PAGE 2016 PAGE 2017 Score: 73/77 POST. REF. DEBIT CREDIT 150,000.00 5,000.00 GENERAL JOURNAL POST. REF. DEBIT ACCOUNT TITLE Accrued/Prepaid Pension Cost Cash Compute the amount of Baron's pension expense for 2016 and 2017. Pension expense 2016 2017 $150,000.00 $ 155,000.00 PAGE 2016 PAGE 2017 Score: 73/77 CREDIT 170,000.00