The following information is available for the pension plan of Brady Company for the year 2010.
Actual and expected return on plan assets $12,000
Benefits paid to retirees 40,000
Contributions (funding) 138,240
Interest/discount rate 10%
Prior service cost amortization 12,288
Projected benefit obligation, January 1, 2010 539,900
Service cost 99,322
(a) Compute pension expense for the year 2010
(b) Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2010.
Debit Pension Expense
Credit Cash
Credit XXXX
Credit XXXX