Farber Company adopted a defined benefit pension plan on January 1, 2019, at which time it awarded retroactive benefits to its employees. This prior service cost amounted to $200,000, which the company did not fund. Farber planned to amortize this prior service cost in the amount of $10,000 per year. Farber determined its pension expense (which included the prior service cost amortization) to be $75,000 for 2019, of which the company funded $74,000. At the end of 2019, the fair value of the pension plan assets was $74,000 and Farbers projected benefit obligation was $265,000.

Required:

Prepare all the journal entries related to Farbers pension plan for 2019.

Prepare the entries to record the prior service cost on January 1, the pension expense for 2019 on December 31, and the amortized prior service cost for 2019 on December 31.

General Journal InstructionsHow does grading work?

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GENERAL JOURNAL

Score: 50/88

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1	Text entry invalid
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