SuperSports provides you the following pension data for the year 2016.

Item

Service Cost, 2016 $248,000

Projected Benefit Obligation, January 2016 $340,000

Plan assets (fair value), Januray 1, 2016 $360,000

Prior Service Cost - AOCI (2016 amoritization, $25,000) $250,000

Net Loss - AOCI (2016 amoritization, $10,000) $110,000

Actual Return on Plan Assets $45,000

Interest rate and expected return on plan assets 10%

Contributions made to plan assets during 2016 $175,000

SuperSports requests you to:

1. Compute pension expense for the year 2016

2. Record 2016 journal entry for pension expense

Requirement 1
	Pension Expense for 2016
	Service Cost
	Interest on PBO
	Actual Return on Plan Assets
	Unexpected Gain(Actual Return
	on Plan Assets - Expected Return)
	Amortization of Prior Service Cost-AOCI
	Amortization of Net Loss- AOCI
	Pension Expense

Requirement 2
	Pension Journal Entry for 2016
	Dr. Pension Expense
	Cr. AOCI-Prior Service Cost
	Cr. AOCI-Gain /Loss
	Cr. Cash
	Cr. Pension Liability