P20-4 (LO1,2,3,4) Pension Expense, Journal Entries for 2 Years
Gordon Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2017 and 2018.
					2017		2018
	Plan assets (fair value), December 31				$ 699,000		$ 849,000
	Projected benefit obligation, January 1				700,000		800,000
	Pension asset/liability, January 1				140,000	Cr	?
	Prior service cost, January 1				250,000		240,000
	Service cost				60,000		90,000
	Actual and expected return on plan assets				24,000		30,000
	Amortization of prior service cost				10,000		12,000
	Contributions (funding)				115,000		120,000
	Accumulated benefit obligation, December 31				500,000		550,000
	Interest/settlement rate				9%		9%

Instructions: (a) Compute pension expense for 2017 and 2018 GORDON COMPANY Pension Worksheet-2017 and 2018 General Journal Entries OCI - Prior Cash Service Cost OCI - Gain/Loss Annual Pension Pension Asset Memo Record Projected Benefit Plan Assets Items Balance, Jan 1. 2017 Service Cost Interest Cost Actual Return Contributions Benefits Journal Entry for 2017 Accumulated OCI, Dec 31, 2016 Balance, Jan 1, 2018 Service Cost Interest Cost Actual Return Unexpected Loss Amortization of PSC Contributions Benefits Journal Entry for 2018 Accumulated OCI, Dec 31, 2017 Balance, Dec 31, 2018 (b) Prepare the journal entries to record the pension expense and the company's funding of the pension plan for both years. Debit Credit 2017 2018 Instructions: (a) Compute pension expense for 2017 and 2018 GORDON COMPANY Pension Worksheet-2017 and 2018 General Journal Entries OCI - Prior Cash Service Cost OCI - Gain/Loss Annual Pension Pension Asset Memo Record Projected Benefit Plan Assets Items Balance, Jan 1. 2017 Service Cost Interest Cost Actual Return Contributions Benefits Journal Entry for 2017 Accumulated OCI, Dec 31, 2016 Balance, Jan 1, 2018 Service Cost Interest Cost Actual Return Unexpected Loss Amortization of PSC Contributions Benefits Journal Entry for 2018 Accumulated OCI, Dec 31, 2017 Balance, Dec 31, 2018 (b) Prepare the journal entries to record the pension expense and the company's funding of the pension plan for both years. Debit Credit 2017 2018