Jordon Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2012 and 2013.
2012 2013
Plan assets (fair value), December 31 $796,161 $967,011
Projected benefit obligation, January 1 797,300 911,200
Pension asset/liability, January 1 159,460 Cr. ?
Prior service cost, January 1 284,750 273,360
Service cost 68,340 102,510
Actual and expected return on plan assets 27,336 34,170
Amortization of prior service cost 11,390 13,668
Contributions (funding) 130,985 136,680
Accumulated benefit obligation, December 31 569,500 626,450
Interest/settlement rate 9 % 9 %
(a) Compute pension expense for 2012 and 2013.
Pension expense for 2012 $
Pension expense for 2013 $
b) Prepare the journal entries to record the pension expense and the company's funding of the pension plan for both years.