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Goodday Ltd. has a defined benefit pension plan and a December 31 year-end. The following information relates to the plan Balancen Defined benefit obligation, end

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Goodday Ltd. has a defined benefit pension plan and a December 31 year-end. The following information relates to the plan Balancen Defined benefit obligation, end of 20x7 Pension plan assets. Fair value, end of 20x7 $5.305,000 4,630.000 SFP net defined benefit liability, end of 20X7 SEP accumulated OCI, pension, end of 20x7 675,000 Gr. Retained earninga, end of 20x7 72,800 dr. 8,655,100 CE 20X8 earninga, prl to any pension expense 4,236,000 CE Current service cost for 20x8, measured using the Projected unit credit method 655,300 New past service cost granted in 20x8, negative because benefits were reduced and the liability has declined (376,000) Contributions made to the pension plan asseta paid at end of 20xe $37.000 Actuarial gain in 20xe, negative because caused by higher anticipated future mortality rates and the liability has declined (101,500) Actual earnings in the fund, reported by the pension fund trustee, including interest, dividends, and change in fair value 153,00 Benefits paid to pensioners from Bension fund assets paid 69,700 at end of 20x8 50 Interest rate on long-term corporate bonds, end of 20x8 Required: 1. Calculate and record the second element of pension accounting for the defined benefit plan. That is calculate net interest cost Net Interest 2. Prepare the entry to record net interest cost. (If no entry is required for a transaction/event, celect "No journal entry required in the first account field.) View transaction list Journal entry worksheet Record the interest expense for net defined benefit pension fiability Note: Enter debits before credits Debit Credit Transaction General Journal 3. Calculate the two components of net interest interest on the defined benefit obligation and expected earnings on fund assets Interest on the obligation Expected earnings

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