(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)

Make full worksheet and then 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.