On December 31, 2019, Robey Company accumulated the following information for 2019 in regard to its defined benefit pension plan:

Service cost	$102,220
Interest cost on projected benefit obligation	12,240
Expected return on plan assets	11,120
Amortization of prior service cost	1,920

On its December 31, 2018, balance sheet, Robey had reported an accrued/prepaid pension cost liability of $13,940.

Required:

1.	Compute the amount of Robeys pension expense for 2019.
2.	Prepare all the journal entries related to Robeys pension plan for 2019 if it funds the pension plan in the amount of (a) $105,260, (b) $104,220, and (c) $109,600.
3.	Next Level Assuming Robeys beginning 2019 Accumulated Other Comprehensive Income: Prior Service Cost balance was $63,770 what would be its ending balance?
4.	Next Level How much would Robey need to fund its pension plan for 2019 in order to report an accrued/ prepaid pension cost asset of $5,100 at the end of 2019?

Chart of Accounts

CHART OF ACCOUNTS

Robey Company

General Ledger

	ASSETS
111	Cash
121	Accounts Receivable
141	Inventory
152	Prepaid Insurance
181	Equipment
198	Accumulated Depreciation

	LIABILITIES
211	Accounts Payable
231	Salaries Payable
250	Unearned Revenue
251	Accrued/Prepaid Pension Cost
261	Income Taxes Payable

	EQUITY
311	Common Stock
331	Retained Earnings
916	Other Comprehensive Income: Prior Service Cost

	REVENUE
411	Sales Revenue

	EXPENSES
500	Cost of Goods Sold
511	Insurance Expense
512	Utilities Expense
521	Salaries Expense
522	Pension Expense
532	Bad Debt Expense
540	Interest Expense
541	Depreciation Expense
559	Miscellaneous Expenses
910	Income Tax Expense

First Question

1. Compute the amount of Robeys pension expense for 2019.

General Journal

2a. Assume Robey Company funds the pension plan in the amount of $105,260. Prepare the entries to record the pension expense for 2019 on December 31 and the amortized prior service cost for 2019 on December 31.

General Journal Instructions

PAGE 1

GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1
2
3
4

2b. Assume Robey Company funds the pension plan in the amount of $104,220. Prepare the entries to record the pension expense for 2019 on December 31 and the amortized prior service cost for 2019 on December 31.

General Journal Instructions

PAGE 1

GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1
2
3
4
5

2c. Assume Robey Company funds the pension plan in the amount of $109,600. Prepare the entries to record the pension expense for 2019 on December 31 and the amortized prior service cost for 2019 on December 31.

PAGE 1

GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1
2
3
4
5

Next Level

3. Assuming Robeys beginning 2019 Accumulated Other Comprehensive Income: Prior Service Cost balance was $63,770 what would be its ending balance?

4. How much would Robey need to fund its pension plan for 2019 in order to report an accrued/ prepaid pension cost asset of $5,100 at the end of 2019?