Pension data for the Ben Franklin Company include the following for the current calendar year: Discount rate, 8% Expected return on plan assets, 10% Actual return on plan assets, 9% Service cost, $200,000
January 1:
PBO $1,400,000
ABO 1,000,000
Plan assets 1,500,000
Amortization of prior service cost 20,000
Amortization of net gain 4,000
December 31:
Cash contributions to pension fund $220,000
Benefit payments to retirees 240,000
Required:
1) Determine pension expense for the year.
2) Prepare the journal entries to record pension expense and funding for the year.