Kristy Corporation received the following information from its pension plan trustee concerning the operation of the company's defined-benefit pension plan for the year ended December 31, 2021:

January 1, 2021 December 31, 2021

Projected benefit obligation $2,500,000 $2,850,000

Fair value of plan assets 1,250,000 1,600,000

Accumulated benefit obligation 1,930,000 2,620,000

Accumulated OCI (PSC) 540,000 300,000

The service cost component for 2021 is $180,000 and the amortization of prior service cost is $240,000. The company's actual funding of the plan in 2021 amounted to $525,000. The expected return on plan assets and the settlement rate were both 8%.

Required:

1. Determine the pension expense to be reported in 2021.

Service cost	$180,000
Interest on projected benefit obligations ($2,500,000 8%)	200,000
Expected return on plan assets ($1,250,000 8%)	(100,000)
Amortization of prior service cost	240,000
Pension expense2021	$520,000

(b) Prepare the journal entry to record pension expense and the employers' contribution to the pension plan in 2021.

	Debit	Credit
Pension Expense	520,000
Pension Asset / Liability	245,000
Cash		525,000
Other Comprehensive Income (PSC)		240,000

#1Measuring and recording pension expense.

Presented below is information related to Walker Corporations pension plan for 2021.

Accumulated benefit obligation (at year-end) $600,000

Service cost 590,000

Funding contribution for 2021 510,000

Settlement rate used in actuarial computation 10%

Expected return on plan assets 9%

Amortization of PSC (due to benefit increase) 52,000

Projected benefit obligation (at beginning of period) 470,000

Fair value of plan assets (at beginning of period) 360,000

Required

1. Compute the amount of pension expense to be reported for 2021. (Show computations.)

(b) Prepare the journal entry to record pension expense and the employer's contribution for 2021.

	Debit	Credit