Tbe following information is available for the pension plan

Tbe following information is available for the pension plan of Radcliffe Company for the year 201 Actual and expected rate of return on plan assets Bencfits paid lo retirees Contributions (funding) Interest discount rate Prior service oost amortization Projected benefit obligation, January 1,2017 Service cost $15,00000 40,000 0,000 10% $8,00000 500,000 60,000 lustracrion (a) Compute pension expense for the year 2017 Computation of pension expense b) Prepare the journal entry to record pension expense and the employer\'s contribution to the pension plan in 2017 Debit Credit

Solution

(a)

(b)

Service cost	$60,000
Interest cost ($500,000 × 10%)	$50,000
Actual (expected) return on plan assets	($15,000)
Unrecognized prior service cost amortization	$8,000
Pension expense for 2017	$103,000