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Gordo Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2010 and 2011.
________________________________________2010___________2011

Plant assets (fair value), Dec. 31 __________$699,000________$849,000
Projected benefit obligation, Jan. 1__________700,000 ________800,000
Pension asset/Liability, Jan. 1______________140,000 Cr._________?
Prior service cost, Jan. 1__________________250,000_________240,000
Service cost_____________________________60,000__________90,000
Actual & expected return on plant assets_____24,000__________30,000
Amortization of prior service cost___________10,000__________12,000
Contributions (funding)____________________115,000_________120,000
Accumulated benefit obligation, Dec. 31______500,000_________550,000
Interest/Settlement rate_____________________9%_____________9%

INSTRUCTIONS:
Prepare the journal entry to record the pension expense and the company's funding of the pension plan for 2010. **There are 2 accounts to be debited and 3 accounts to be credited for this entry.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9978497

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