Pitchford Company adopted a defined benefit pension plan on January I, 2016, at which time it awarded retroactive benefits to its employees. The following information is available in regard to this plan:
Prior service cost on 1/1/16 related to retroactive benefits:....$300,000 (not funded)
Planned amortization of prior service cost ........... $25,000 per year
Pension expense for 2016 ($95,000 funded) ...........$105,000*
Fair value of plan assets, end of 2016 ............ $ 95,000
Projected benefit obligation, end of 2016 ..........$380,000
*includes amortization of prior service cost
Required:
Prepare all the journal entries related to Pitchford’s pension plan for 2016. Include a brief explanation for each journal entry.