Question

Swifty 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		$810,840			$984,840
Projected benefit obligation, January 1		812,000			928,000
Pension asset/liability, January 1		162,400	Cr.		?
Prior service cost, January 1		290,000			278,400
Service cost		69,600			104,400
Actual and expected return on plan assets		27,840			34,800
Amortization of prior service cost		11,600			13,920
Contributions (funding)		133,400			139,200
Accumulated benefit obligation, December 31		580,000			638,000
Interest/settlement rate		9	%		9	%

Compute pension expense for 2017 and 2018.

Pension expense for 2017: $ ________

Pension expense for 2018: $ ________

Prepare the journal entries to record the pension expense and the company’s funding of the pension plan for both years. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

12/31/17

account title and explanation	debit	credit

12/31/18

account title and explanation	debit	credit

Answer 1