Averon Industrial, Inc., computed the following components of pension expense for the years 2013-2015: (in thousands)
Components of Pension Expense 2013 2014 2015
Service cost 330 415 580
Interest cost 150 170 220
Actual return on the pension fund 35 50 40
Expected return on the pension fund 30 45 50
Amortization of deferred pension (gain) or loss- above corridor amount (20) (10) 18
Amortization of prior service cost 70 90 90
Amount contributed to fund 520 580 750
Instructions:
1. Compute the net periodic pension expense for the years 2013-2015
2. Prepare the summary journal entries to record the computed pension expense in (1) and the funding of the pension plan
3. If the pension-related asset/liability account at December 31, 2015. Also compute the balance in pension-related accumulated other comprehensive income at December 31, 2015; the balance on January 1,2013 was a debit of $600,000.