Becky Company began a defined benefit pension plan on January 1, 2010. No prior service credit was granted to employees. Service costs amounted to $34,000 in 2010 and $37,000 in 2011. All contributions to the fund were made at the end of the year. A 10% discount rate was used. The expected (and actual) rate of return of plan assets was 12%.

Required:

Prepare the journal entry for Dec. 31, 2010, and 2011, assuming:

1. Funding equaled expense.
2. $31,000 was funded each year.
3. $38,000 was funded each year.

Answer rating: 100% (QA)

DATE DEBIT CREDIT ACCOUNTS TITLE EXPLANATION a 31122014 Pension Expense 34000 Cash 34000 ... View the full answer