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Presented below is information on the Jones Department Stores, Inc. pension plan for 2021: Service cost 470,000 Funding contribution for 2021 380,000 Settlement rate used

Presented below is information on the Jones Department Stores, Inc. pension plan for 2021:

Service cost 470,000

Funding contribution for 2021 380,000

Settlement rate used in actuarial computation 10%

Return on plan assets 22,400

Amortization of PSC (due to benefit increase) 90,000

Projected benefit obligation (at beginning of period) 450,000

Fair value of plan assets (at beginning of period) 360,000

(US GAAP)

(a) Compute the amount of pension expense to be reported for 2021. (Show computations.)

(b) Prepare the journal entry to record the annual pension expense and the employer's contribution for 2021.

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