Rollo Company maintains a defined benefit pension with First Hartford Trust. Below are the balances reported by

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Question:

Rollo Company maintains a defined benefit pension with First Hartford Trust. Below are the balances reported by First Hartford on January 1, 2019:

Plan Benefit Obligation $520,000

Plan Assets $650,000 At the beginning of 2019,

First Hartford informed Rollo that due to amending the program for prior service for new employees, they need to deposit an additional $180,000. Other matters for 2019 are:

The settlement rate is 10%.

The current service cost is $40,000.

Expected earnings are 10% on beginning plan assets.

Actual earnings are $62,000. There is an expected loss. Prior service cost amortization is $25,000. First Hartford Trust paid retirement benefits of $35,000. Rollo funded the plan $120,000.

Prepare a pension worksheet below: Prepare the pension expense entry.