Determine pension expense for the year prepare the journal

Question

Pension data for the Ben Franklin Company include the following for the current calendar year: Discount rate, 8% Expected return on plan assets, 10% Actual return on plan assets, 9% Service cost, $200,000

January 1:

PBO                                                             $1,400,000

ABO                                                             1,000,000

Plan assets                                                   1,500,000

Amortization of prior service cost                    20,000

Amortization of net gain                                 4,000

December 31:

Cash contributions to pension fund                $220,000

Benefit payments to retirees                          240,000

Required:

1) Determine pension expense for the year.

2) Prepare the journal entries to record pension expense and funding for the year.