The following tables are the reports of the pension trustee and pension actuary for Macpherson Massage Corp., which started the defined benefit pension plan at the beginning of 2018:

Required: 

a. Prepare the journal entries for Macpherson’s pension plan in 2018. Record each item of pension expense and OCI separately. 

b. Prepare the journal entries for Macpherson’s pension plan in 2019. Record each item of pension expense and OCI separately.

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Pension trustee report Opening assets, January 1 + Funding (received beginning of year) - Payments to retirees (paid at end of year) + Expected return on assets Expected value, December 31 Actual market value, December 31 Unexpected gain (loss) Pension actuary report Opening accrued benefit obligation, January 1 + Current service cost (accrued at end of year) + Past service cost (accrued at beginning of year) - Payments to retirees (paid at end of year) + Interest Expected value, December 31 Actual obligation, December 31 Actuarial gain (loss) $ 2018 $ 1,000,000 (50,000) 60,000 $1,010,000 1,050,000 $ 40,000 0 2018 0 1,500,000 2,400,000 (50,000) 144,000 $3,994,000 4,000,000 $ (6,000) 2019 $1,050,000 1,100,000 (120,000) 107,500 2,137,500 2,100,000 $ (37,500) 2019 $4,000,000 1,650,000 0 (120,000) 200,000 $5,730,000 5,700,000 $ 30,000