What would be the required journal entry/entries for this issue? Requirements are that this issue takes place in the U.S. and therefore is subject to GAAP standards. Additionally, GAAP references are requested for the entry/entries, themselves.

2. VP is considering implementing a pension plan for senior employees who will have an average of about 15 years to retirement on January 1, 2013. Hannah consulted an actuary who provided the following analysis of VP's pension requirements in a report provided in December 2012. He stated that if VP decides to implement a pension plan effective January 1, 2013: (a) Past service costs would be $300,000 as of January 1, 2013. (b) Current service cost would be $45,000 for 2013. (C) VP should assume a discount rate of 8 percent for any accrued bene- fit obligation and assume a return on investments at 7 percent. (d) Recommended initial funding would be $150,000 on January 1, 2013. (e) Benefit payments of only $18,000 would need to be made in 2013, and they could be paid on December 31. The sisters consider a pension plan important because they recently opened a European office, and pensions are a key perk for employees in Europe. Since they have hired some new employees in Europe relating to the video confer- encing business, the average time to full vesting for their senior employees is five years. The sisters are interested in knowing the following relating to the pension plan, before they decide whether or not to adopt the plan (i) what would be pension expense for 2013? and (ii) what would be the effect on VP's 2013 balance sheet if they implemented the pension plan? 2. VP is considering implementing a pension plan for senior employees who will have an average of about 15 years to retirement on January 1, 2013. Hannah consulted an actuary who provided the following analysis of VP's pension requirements in a report provided in December 2012. He stated that if VP decides to implement a pension plan effective January 1, 2013: (a) Past service costs would be $300,000 as of January 1, 2013. (b) Current service cost would be $45,000 for 2013. (C) VP should assume a discount rate of 8 percent for any accrued bene- fit obligation and assume a return on investments at 7 percent. (d) Recommended initial funding would be $150,000 on January 1, 2013. (e) Benefit payments of only $18,000 would need to be made in 2013, and they could be paid on December 31. The sisters consider a pension plan important because they recently opened a European office, and pensions are a key perk for employees in Europe. Since they have hired some new employees in Europe relating to the video confer- encing business, the average time to full vesting for their senior employees is five years. The sisters are interested in knowing the following relating to the pension plan, before they decide whether or not to adopt the plan (i) what would be pension expense for 2013? and (ii) what would be the effect on VP's 2013 balance sheet if they implemented the pension plan