Problem - The following information is available for the pension plan of Riverbed Company for the year 2017.
|
Actual and expected return on plan assets
|
$ 15,800
|
|
Benefits paid to retirees
|
39,500
|
|
Contributions (funding)
|
88,700
|
|
Interest/discount rate
|
11%
|
|
Prior service cost amortization
|
7,600
|
|
Projected benefit obligation, January 1, 2017
|
548,000
|
|
Service cost
|
60,000
|
Required -
Compute pension expense for the year 2017.
Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2017.