The memorandum records of Red Ribbon Trading Corporation on January 1, 2018 show the following:

Defined Benefit Obligation P3, 000,000

Fair Value of Plan Assets P2, 600,000

The following information for 2016 is also provided:

2018 service cost P1, 000,000

Discount rate 10%

Actual return on plan assets 640,000

Benefits paid 600,000

Contributions made 2,000,000

Past service cost 800,000

The benefit obligation as measured by the actuary at December 31, 2016 has a present value of P11, 050,000.

Requirement:

1. Journal Entries to record the funding and the retirement liability/asset
2. Balance of the defined benefit asset or liability as of December 31, 2018

Reconciliation of the balance determined in C.