Exercise 20-3

Ivanhoe Company provides the following information about its defined benefit pension plan for the year 2017.

Service cost $91,800

Contribution to the plan 103,500

Prior service cost amortization 9,400

Actual and expected return on plan assets 63,200

Benefits paid 39,700

Plan assets at January 1, 2017 647,900

Projected benefit obligation at January 1, 2017 712,300

Accumulated OCI (PSC) at January 1, 2017 147,400

Interest/discount (settlement) rate 10 %

Prepare a pension worksheet inserting January 1, 2017, balances, showing December 31, 2017.

Prepare the journal entry recording pension expense.