Howard Corp. sponsors a defined$-$benefit pension plan for its employees. On January $1,201$X$,$ the following balances related to this plan.

Plan assets $($fair value$)$

$$550,000$

$600,000$

$50,000Cr.$

Projected benefit obligation

Pension asset$/$liability

$50,000Cr.$

As a result of the operation of the plan during $201$X$,$ the actuary provided the following additional data at December $31,201$X$.$

Service cost for $201$X

Actual return on plan assets in $201$X

$$70,000$

Contributions in $201$X

Benefits paid retirees in $201$X

$44,000$

$115,000$

Settlement rate

$80,000$

Expected return rate

$7\%$

Average remaining service life of active employees $10$ years

Instructions

$($a$)$ Compute pension expense for Howard Corp. for the year $201$X by preparing a pension worksheet below. $(14$ Points$)$

$($b$)$ Prepare the journal entry for pension expense. $(3$ Points$)$

Balance, Jan. $1,201$X

General Journal Entries

Annual

Pension

Pension

Memo Record

Expense

Cash

Asset$/$Liability

Projected

Benefit

Service cost

Interest cost

Actual return

Contributions

Benefits

Journal entry for $201$X

Balance, Dec. $31,201$X