On January 1, 2016, Baznik Company adopted a defined benefit pension plan. At that time, Baznik awarded retroactive benefits to certain employees. These retroactive benefits resulted in a prior service cost of $1,230,000 on that date (which it did not fund). Baznik has six participating employees who are expected to receive the retroactive benefits. Following is a schedule that identifies the participating employees and their expected years of future service as of

January 1, 2016: Employee Expected Years of Future Service A 1 B 3 C 4 D 5 E 5 F 6

Baznik decided to amortize the prior service cost to pension expense using the years-of-future-service method. The following are the amounts of the components of Bazniks pension expense, in addition to the amortization of the prior service cost for 2016 and 2017: 2016 2017

Service cost $406,100 and $501,213

Interest cost on projected benefit obligation 114,900 and 151,937

Expected return on plan assets 77,600

Baznik contributed $799,300 and $829,900 to the pension fund at the end of 2016 and 2017, respectively.

Required: 1. Next Level Prepare a set of schedules for Baznik to determine (a) the amortization fraction for each year and (b) the amortization of the prior service cost. 2. Next Level Prepare all the journal entries related to Bazniks pension plan for 2016 and 2017.