Gecko Company has a defined benefit pension plan. At the end of the current reporting period, December 31, 1998, the following information was available:
a. Projected benefit obligation (actuary's report):Balance, January 1, 1998 $ 2,400Service cost 312Interest cost ($2,400 x 7% actuary's rate) 168Loss (gain) change in actuarial assumptions* 72
Pension benefits paid (160)
Balance, December 31, 1998 $ 2,792
* Amortization to start in 1999
b. Status of fund assets (trustee's report):Balance, January 1, 1998 $ 2,000Actual return on plan assets (same as expected) 120Cash received from employer company 280
Pension benefits paid to retirees (160)
Balance, December 31, 1998 $ 2,240
c. From company records, unamortized pension cost from prior years (amortize over a nine-year averageremaining service period) Transition cost $ 72 Prior service cost 108 Losses (gains) 144 Total $ 324
Required:
1. Set up and complete a spreadsheet or format of your choice to develop the pension data required at the end of 1998.
2. Give the employer's pension entry at December 31, 1998.