Brigus Corp. (Brigus) provides its employees with a defined-benefit pension plan. The plan was instituted three years ago. During the year ended March 31, 2017, Brigus contributed $150,000 to the plan. An evaluation of the plan as of the end of fiscal 2017 found that contributions of $250,000 were required in 2017 to have enough money in the plan to provide the benefits promised to employees when they retire.
a. What journal entry would Brigus have made in fiscal 2017 to record the cash it contributed to the pension plan?
b. How much pension liability should be reported on Brigus' balance sheet on March 31, 2017? Explain what this amount represents.