pension expense 459629

Gordon Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2010 and 2011.

2010 2011

Plan assets (fair value), December 31 $699,000 $849,000

Projected benefit obligation, January 1 700,000 800,000

Pension asset/Liability, January 1 140,000 Cr. ?

Prior service cost, January 1 250,000 240,000

Service cost 60,000 90,000

Actual and expected return on plan assets 24,000 30,000

Amortization of prior service cost 10,000 12,000

Contributions (funding) 115,000 120,000

Accumulated benefit obligation, December 31 500,000 550,000

Interest/settlement rate 9% 9%

Incorrect.

Compute pension expense for 2010 and 2011.

Pension Expense 2010 $

Pension Expense 2011 $

Incorrect.

Prepare the journal entries to record the pension expense and the company’s funding of the pension plan for both years. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2. If amounts are the same, list alphabetically.)

Date Description/Account Debit Credit

2010 Pension expense

Cash

2011 Pension expense

Cash

Other comprehensive income (PSC)