P20.4 (LO 1, 2, 3, 4) Excel (Pension Expense, Journal Entries for 2 Years) Gordon Company sponsors a defined benefit pension plan. The following information related to the pension plan is avail- able for 2020 and 2021. 2020 2021 Plan assets (fair value), December 31 Projected benefit obligation, January 1 Pension asset/liability, January 1 Prior service cost, January 1 Service cost Actual and expected return on plan assets Amortization of prior service cost Contributions (funding) Accumulated benefit obligation, December 31 Interest/settlement rate $699,000 700,000 140,000 Cr. 250,000 60,000 24,000 10,000 115,000 500,000 $849,000 800,000 ? 240,000 90,000 30,000 12,000 120,000 550,000 9% 9% 3 CHAPTER 20 Accounting for Pensions and Postretirement Benefits Instructions a. Compute pension expense for 2020 and 2021. b. Prepare the journal entries to record the pension expense and the company's funding of the pension plan for both years