Question

The following information is available for the pension plan of Pina Company for the year 2017....

The following information is available for the pension plan of Pina Company for the year 2017.
Actual and expected return on plan assets $ 16,300
Benefits paid to retirees 38,400
Contributions (funding) 94,400
Interest/discount rate 11 %
Prior service cost amortization 8,800
Projected benefit obligation, January 1, 2017 510,000
Service cost 63,300

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Answer #1
Answer
1) Pension expense :
Particulars Amount
Service cost $      63,300
Interest cost $      56,100
Expected return on plan assets $    -16,300
Amortization of prior service cost $        8,800
Pension expense for 2017 $   1,11,900
2) Journal Entries
Accounts Title & Explanation Debit Credit  
Pension expenses $   1,11,900
To, Cash $      94,400
  To,Pension Asset/Liability $        8,700
To,Other Comprehensive Income (PSC) $        8,800

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