Question - Pension Expense and Liability
Pitchford Company adopted a defined benefit pension plan on January 1, 2010, at which time it awardedretroactive benefits to its employees. The following information is available in regard to this plan:
Prior service cost on 1/1/10 related to retroactive benefits: $300,000 (not funded)
Planned amortization of prior service cost: 25,000 per year
Pension expense for 2010 ($95,000 funded): 105,000*
Fair value of plan assets, end of 2010: 95,000
Projected benefit obligation, end of 2010: 380,000
*Includes amortization of prior service cost.
Required: Prepare all the journal entries related to Pitchford Company's pension plan for 2010?