Baron Company adopted a defined benefit pension plan on January 1, 2015. The following information pertains to the pension plan for 2016 and 2017:

	2016	2017
Service cost	$150,000	$160,000
Projected benefit obligation (1/1)	112,500	269,250
Plan assets (1/1)	112,500	273,750
Company contribution (funded 12/31)	154,500	170,000
Discount rate	6%	6%
Expected long-term (and actual) rate of return on plan assets	6%	6%

There are no other components of Barons pension expense.

Required:

1.	Compute the amount of Barons pension expense for 2016 and 2017.
2.	Prepare the journal entries to record the pension expense for 2016 and 2017.

CHART OF ACCOUNTS

Baron Company

General Ledger

	ASSETS
111	Cash
121	Accounts Receivable
141	Inventory
152	Prepaid Insurance
181	Equipment
198	Accumulated Depreciation

	LIABILITIES
211	Accounts Payable
231	Salaries Payable
250	Unearned Revenue
251	Accrued/Prepaid Pension Cost
261	Income Taxes Payable

	EQUITY
311	Common Stock
331	Retained Earnings

	REVENUE
411	Sales Revenue

	EXPENSES
500	Cost of Goods Sold
511	Insurance Expense
512	Utilities Expense
521	Salaries Expense
522	Pension Expense
532	Bad Debt Expense
540	Interest Expense
541	Depreciation Expense
559	Miscellaneous Expenses
910	Income Tax Expense