Question $1$

Cambrian Inc has a defined contribution pension plan for its employees. The plan requires the company to contribute $15\%$ of these employees' salaries to the pension. For the current year, total salary for employees covered by the pension plan amounted to $$60$ million, of which $80\%$ is attributable to employees involved in manufacturing while the remaining $20\%$ of salaries relate to administrative staff. The company contributed $$7$ million to the pension plan during the year.

Required:

Provide the summary journal entry for Cambrian's pension plan for the year.

Question $2$

Sudbury NPO has had a defined benefit pension plan for three decades. Two years ago, Sudbury NPO improved the benefits at a cost of $$2,800,000.$

Pension plan assets were $$84,000,000$ while pension obligations were $$76,000,000$ at the beginning'of the year.

For the current year, Sudbury NPO's pension plan incurred a current service cost of $$5,400,000$ and interest of $$7,600,000.$ The pension's assets earned $$8,000,000,$ which is $$400,000$ below expectations. There were no actuarial gains or losses for the year.

Required:

Compute the pension expense for the year.

Record the journal entries for Sucbury NPO's pension plan.