(Pension Expense, Journal Entries for 2 Years) Gordon Company  sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2020 and 2021.  2020 2021  Plan assets (fair value), December 31 $699,000 $849,000  Projected benefit obligation, January 1 700,000 800,000  Pension asset/liability, January 1 140,000 Cr.?  Prior service cost, January 1 250,000 240,000  Service cost 60,000 90,000  Actual and expected return on plan assets 24,000 30,000  Amortization of prior service cost 10,000 12,000  Contributions (funding) 115,000 120,000  Accumulated benefit obligation, December 31 500,000 550,000  Interest/settlement rate 9% 9%    a. Compute pension expense for 2020 and 2021.  b. Prepare the journal entries to record the pension expense and the company’s funding of the pension  plan for both years

FINANCIAL ACCOUNTING
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(Pension Expense, Journal Entries for 2 Years) Gordon Company  sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2020 and 2021.  2020 2021  Plan assets (fair value), December 31 $699,000 $849,000  Projected benefit obligation, January 1 700,000 800,000  Pension asset/liability, January 1 140,000 Cr.?  Prior service cost, January 1 250,000 240,000  Service cost 60,000 90,000  Actual and expected return on plan assets 24,000 30,000  Amortization of prior service cost 10,000 12,000  Contributions (funding) 115,000 120,000  Accumulated benefit obligation, December 31 500,000 550,000  Interest/settlement rate 9% 9% 

 

a. Compute pension expense for 2020 and 2021.  b. Prepare the journal entries to record the pension expense and the company’s funding of the pension  plan for both years.. 

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