Jones Dept store, Inc Pension Plan for 2011.
Accumulated benefit obligation (at year end) ...........................$600,000
Service Cost ..............................................................................520,000
Funding Contribution for 2011 ................................................500,000
Settlement rate used in actuarial computation .........................10%
Expected return on plant assets ................................................9%
Amortization of PSC (due to benefit increase) .........................100,000
Amortization of net gains .........................................................48000
Projected benefit obligation (at beginning of period) ................480,000
Market Related (and fair) value of plan assets (at beginning of period) ....360,000
a. Compute the amount of pension expense to be reported for 2011. (Show computations)
b. Prepare the journal entry to record pension expense and the employer's contribution for 2011.