Gordon Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2022 and 2023 no benefits were paid in either year.

Instructions

a. Compute pension expense for 2022 and 2023.

b. Prepare the journal entries to record the pension expense and the company’s funding of the pension plan for both years.

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2022 2023 Plan assets (fair value), December 31 $699,000 $849,000 Defined benefit obligation, January 1 700,000 800,000 Pension asset/liability, January 1 140,000 Cr. ? Service cost 60,000 90,000 Actual return on plan assets 24,000 30,000 Contributions (funding) 115,000 120,000 Accumulated benefit obligation, December 31 Discount (interest) rate 500,000 550,000 %6 %6