On January 1, 20x4, the day a company was formed, a defined benefit pension plan for

all employees was initiated. The plan assets at January 1, 20x5, held by a trustee,

amounted to $340,000. Data for the current year, 20x5, is as follows:

Current service cost for 20x5: $220,000

Payments to pension plan (was debited to the pension liability account): 300,000

Actual return on plan assets: 15,000

Balance in defined benefit plan, December 31, 20x5 per actuary: 730,000

Yield on high quality corporate bonds: 5%

The unadjusted trial balance as at December 31, 20x5 shows a debit balance of $95,000

in the Pension Liability account.

The service component of pension expense should be debited to administrative expenses.

Required Prepare one adjusting journal entry related to this pension plan at December

31, 20x5.