Problem 19-7

Cullumber Corporation applies ASPE and sponsors a defined benefit pension plan. The following pension plan information is available for 2020 and 2021:

		2020		2021
Plan assets (fair value), December 31		$512,100		$649,000
Defined benefit obligation, January 1		605,000		702,000
Net defined benefit liability (asset), January 1		236,300		?
Current service cost		64,950		85,000
Actual return on plan assets		23,800		46,800
Funding of current service cost		62,000		85,000
Funding of past service costs		80,000		57,000
Benefits paid		?		?
Interest/discount rate		9%		9%

The pension fund paid out benefits in each year. There were no actuarial gains or losses incurred on the DBO in the two-year period.

Calculate pension expense for 2020 and 2021.

Pension expense, 2020		$
Pension expense, 2021		$

Prepare all journal entries to record the pension expense and the company's pension plan funding for both years. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
2020
	(To record pension expense.)
2020
	(To record contributions to the pension fund.)
2021
	(To record pension expense.)
2021
	(To record contributions to the pension fund.)