Amherst City provides a defined benefit pension plan for employees of the city electric utility, an enterprise fund. Assume that the projected level of earnings on plan investments is $196,000, the service cost component is $255,000, and interest on the pension liability is $163 000 for the year. Actual returns on plan assets for the year were $179,000, and the City is amortizing a deferred outflow resulting from a change in plan assumptions from a prior year in the amount of $7,100 per year.

Prepare journal entries to record annual pension expense for the enterprise fund. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

1- Record entry for pension expense.

2- Record entry for additional pension liability.

3- Record entry for amortization of deferred outflow resulting from change in pension plan assumptions

Answer rating: 100% (QA)

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