1 Brown Industries operates a defined benefit pension plan. Information received from the actuary and the trustee related to the Year 2 2 pension plan includes the following: 3 4 6 7 8 $1,889,000 132,000 190,000 182,000 155,000 215,000 122,000 37,000 1,825,000 9 10 Projected benefit obligation, January 1, Year 2 5 Service cost Interest cost Retirement benefits paid Employer contribution Actual return on plan assets Amortization of prior service cost Amortization of prior-year net pension loss Fair value of pension plan assets, December 31, Year 1 13 14 Brown's projected benefit obligation at December 31, Year 2, is $1,787,000 b. $1,969,000 17 $2,002,000 $2,029,000 19 11 12 15 16 18 20 21 General Journal Entries Annual Pension Expense Memo Record Projected Benefit Obligation Plan OCI-Prior Service Cost OCI - Gains/ Losses Pension Asset Liability 22 Cash Assets