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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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