(Pension Expense, Journal Entries for 2 Years)

(LO 1, 2, 3, 4) 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.

(b) Prepare the journal entries to record the pension expense and the company's funding of the pension plan for both years.

1 PZL-4 (L01.2.3.4) Povies Expan. Jarl Estrier for 2 Tears Gordon Company Panar a defined benefit pension plan. The follouing information related to the perion plan is available for 2017 and 2018. $ 2017 $ 699,000 700,000 140.000 250,000 2018 849,000 800,000 CF Plan arrot (fair value), December 31 Projected benefit obligation, January 1 Porrian arreliability, January 1 Prior service cart, January 1 Service cart Actual and expected return on plan arrots Amortization of priarrervice cart Contribution (Funding) Accumulated benefit obligation, December 31 Interatirottlementrato 24,000 240,000 40,000 30,000 12.000 120,000 550,000 115,000 500,000 17 Nirecties: 48 (a) Compute penion expone for 2017 and 2018. GORDON COHPAHT Portion Worksheet-2017 and 2018 General Journal Entrier 001- Prior Carh Service .. OCI-Geir Le . Annual Perrin Portion Proiected wekt Benefit Plan Arrot 52 ) Prepare the journal entriertarecord the pontian expone and the company's Funding of the pension plan for both years