Question

Swifty Company sponsors a defined benefit pension plan. The following information related to the pension plan...

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

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