On December 31, 2019, Palmer Company determined that the 2019 service cost on its defined benefit pension plan was $140,000. At the beginning of 2019, Palmer had pension plan assets of $510,000 and a projected benefit obligation of $700,000. Its discount rate (and expected long-term rate of return on plan assets) for 2019 was 10%. There are no other components of Palmers pension expense; the company had an accrued/prepaid pension cost liability at the end of 2018.

Required:

1.	Prepare the journal entry to record Palmers 2019 pension expense if it funds the pension plan in the amount of (a) $159,000 and (b) $140,000.

1a. Prepare the journal entry to record Palmers 2019 pension expense on December 31 if it funds the pension plan in the amount of $159,000.

General Journal Instructions

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
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1b. Prepare the journal entry to record Palmers 2019 pension expense on December 31 if it funds the pension plan in the amount of $140,000.

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
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2
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