The information for pension plan of XYZ Company for the year 2010 is given below.
Actual and expected return on plan assets $12,000
Benefits paid to retirees 40,000
Contributions (funding) 95,000
Interest / discount rate 10%
Prior service cost amortization 8,000
Projected benefit obligation, Januuary 1, 2010 500,000
Service cost 60,000
1. find out pension expense for the year 2010.
2. Create the journal entry to record pension expense and employer’s contribution to pension plan in 2010.