Question

pension expense, journal entries for 2 yearrs. biker company sponsors a defined benefit pension plan. the following information related to the pension plan is available for 2017 and 2018. 2017 2018

plan assets (fair value) December 31 396,000 462,000

projected benefit obligation, January 1 400,000 500,000

pension asset/liability , January 1 60,000 cr ?

prior service cost, Jan 1 300,000 260,000

service cost 30,000 42,000

actual and expected return on plan assets 26,000 32,000

amortization of prior service cost 40,000 46,000

contribution (funding) 30,000 34,000

accumulated benefit obligation, dec 31 320,000 380,000

interest/ settlement rate 6% 6%

pension expense $68,000 $86,000

question: prepare the journal entries to record the pension expense and the company's funding of the pension plan for both years? please show work, thank.

Answer 1