(Pension Expense, Journal Entries for 2 Years) Gordon Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2017 and 2018.Check the below image for pension plan.Instructions(a) Compute pension expense for 2017 and 2018.(b) Prepare the journal entries to record the pension expense and the company’s funding of the pension plan for both years. 20172018Plan assets (fair value), December 31Projected benefit obligation, January 1Pension asset/liability, January 1Prior service cost, January 1$699,000$849,000800,000700,000140,000 Cr.?250,000240,000Service cost60,00090,000Actual and expected return on plan assetsAmortization of prior service costContributions (funding)Accumulated benefit obligation, December 31Interest/settlement rate24,00030,00010,000115,00012,000120,000500,000550,0009%9%

Answered: 2017 2018 Plan assets (fair value),…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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(Pension Expense, Journal Entries for 2 Years) Gordon Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2017 and 2018.

Check the below image for pension plan.

Instructions
(a) Compute pension expense for 2017 and 2018.
(b) Prepare the journal entries to record the pension expense and the company’s funding of the pension plan for both years.

2017
2018
Plan assets (fair value), December 31
Projected benefit obligation, January 1
Pension asset/liability, January 1
Prior service cost, January 1
$699,000
$849,000
800,000
700,000
140,000 Cr.
?
250,000
240,000
Service cost
60,000
90,000
Actual and expected return on plan assets
Amortization of prior service cost
Contributions (funding)
Accumulated benefit obligation, December 31
Interest/settlement rate
24,000
30,000
10,000
115,000
12,000
120,000
500,000
550,000
9%
9%

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