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Question
Swan Company has provided you with the following data pertaining to their pension plan for the year ended December 31, 2011:
The 2011 service cost was $175,500.
The projected benefit obligation as of January 1, 2011 was $1,950,000.
Plan assets as of January 1, 2011 totaled $2,020,000.
The actual return on plan assets during 2011 was 10%.
Amortization of prior service costs during 2011 was $9,750.
The expected return on plan assets was 8%.
The pension plan funding during 2011 totaled $170,000.
The settlement/discount rate was 8%.
Prepare the journal entry to record pension expense for the year ended December 31, 2011.
Answer
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