The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal years 2011 and 2012 are presented below ($ in millions):

Information Provided by Pension Plan Actuary:

a. Projected benefit obligation as of December 31, 2010 = $1,800.

b. Prior service cost from plan amendment on January 2, 2011 = $400 (straight-line amortization for 10-year average remaining service period).

c. Service cost for 2011 = $520.

d. Service cost for 2012 = $570.

e. Discount rate used by actuary on projected benefit obligation for 2011 and 2012 = 10%.

f. Payments to retirees in 2011 = $380.

g. Payments to retirees in 2012 = $450.

h. No changes in actuarial assumptions or estimates.

i. Net gain—AOCI on January 1, 2011 = $230.

j. Net gains and losses are amortized for 10 years in 2011 and 2012.

Information Provided by Pension Fund Trustee:

a. Plan asset balance at fair value on January 1, 2011 = $1,600.

b. 2011 contributions = $540.

c. 2012 contributions = $590.

d. Expected long-term rate of return on plan assets = 12%.

e. 2011 actual return on plan assets = $180.

f. 2012 actual return on plan assets = $210.

Required:

1. Calculate pension expense for 2011 and 2012.

2. Prepare the journal entries for 2011 and 2012 to record pension expense.

3. Prepare the journal entries for 2011 and 2012 to record any gains and losses and new prior service cost.

4. Prepare the journal entries for 2011 and 2012 to record the cash contribution to plan assets and benefit payments to retirees.