Question
Shamrock Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2017 and 2018. 2017 2018 Plan
Shamrock 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 $719,970 $874,470
Projected benefit obligation, January 1 721,000 824,000
Pension asset/liability, January 1 144,200 Cr. ?
Prior service cost, January 1 257,500 247,200
Service cost 61,800 92,700
Actual and expected return on plan assets 24,720 30,900
Amortization of prior service cost 10,300 12,360
Contributions (funding) 118,450 123,600
Accumulated benefit obligation, December 31 515,000 566,500
Interest/settlement rate 10 % 10 %
Compute pension expense for 2017 and 2018.
Prepare the journal entries to record the pension expense and the companys funding of the pension plan for both years.
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