Exercise 20-4

The following facts apply to the pension plan of Skysong Inc. for the year 2017.

Plan assets, January 1, 2017		$498,700
Projected benefit obligation, January 1, 2017		498,700
Settlement rate		8	%
Service cost		42,100
Contributions (funding)		22,800
Actual and expected return on plan assets		45,500
Benefits paid to retirees		34,500

Using the preceding data, compute pension expense for the year 2017. As part of your solution, prepare a pension worksheet that shows the journal entry for pension expense for 2017 and the year-end balances in the related pension accounts.

SKYSONG INC. Pension Worksheet-2017 General Journal Entries Memo Record Annual Pension Expense Plan Assets Liability Items Balance, January 1, 2017 Service cost Interest cost Actual return Contributions Benefits Obligation Journal entry, December 31 Balance, December 31, 2017