Sheridan, Inc. on January 1, 2021 initiated a noncontributory, defined-benefit pension plan that grants benefits to its 96 employees for services rendered in years prior to the adoption of the pension plan. The total expected service-years of the 96 employees who are expected to receive benefits under the plan is 1.152. An actuarial consulting firm has indicated that the present value of the projected benefit obligation on January 1, 2021 was $5,472,000. On December 31, 2021 the following information was provided concerning the pension plan's operations for its first year. Employer's contribution at end of year $1,560,000 Service cost 560,000 Projected benefit obligation 6,541,600 Plan assets (at fair value) 1,560,000 Expected return on plan assets 9% Settlement rate 8% Compute the pension expense recognized in 2021. Assume the prior service cost is amortized over the average remaining service life of the employees. Pension expense Prepare the journal entries to reflect accounting for the company's pension plan for the year ended December 31, 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS Indicate the amounts that are reported on the income statement and the balance sheet for 2021. Sheridan, Inc. Income Statement (Partial) Sheridan, Inc. Balance Sheet (Partial)