Problem 1: (Pension Expense, Journal Entries) The following information is available for the pension plan of Kiley Company for the year 2004.
Actual and expected return on plan assets $ 12,000
Benefits paid to retirees 40,000
Contributions (funding) 95,000
Interest/discount rate 10%
Prior service cost amortization 8,000
Projected benefit obligation, January 1, 2004 500,000
Service cost 60,000
Instructions:
(a) Compute pension expense for the year 2004.
(b) Prepare the journal entry to record pension expense and the employer’s contribution to the pension plan in 2004.