Pension data for the Ben Franklin Company include the following for the current calendar year: Discount rate, 6% Expected return on plan assets, 8% Actual return on plan assets, 7% Service cost, $190,000

January 1:
PBO	$	1,390,000
ABO		990,000
Plan assets		1,490,000
Amortization of prior service cost		19,000
Amortization of net gain		3,900
December 31:
Cash contributions to pension fund	$	219,000
Benefit payments to retirees		239,000

Required: 1. Determine pension expense for the year. 2. Prepare the journal entries to record pension expense and funding for the year.

Pension Expense
Service cost	$190,000
Interest cost	83,400
Expected return	(119,200)
Amortization of prior service cost	19,000
Amortization of net gain	(3,900)
Pension expense	$169,300

No	Transaction	General Journal	Debit	Credit
1	1	Pension expenses	169,300
		Amortization of net gain - OCI	3,900
		Plan assets		?? The answer is not 154,200
		Amortization of prior service cost - OCI		19,000
2	2	Plan assets	219,000
		Cash		219,000