Seasaw Seasons instituted a defined benefit pension plan for its employees three years ago. Each year since the adoption of the plan, Seasaw has contributed $16,000 to the pension fund, which is managed by Fiduciary Trust Associates. As of the end of the current year, it was estimated that contributions of $58,000 would have been necessary to maintain a fund large enough to provide the benefits promised to the employees when they retire.
a. Prepare the journal entries that were recorded by Seasaw as it contributed cash to the pension fund.
b. How much pension liability should be recorded on Seasaw's balance sheet as of the end of the current year?