Question

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

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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