Gordon company sponsors a defined benefit pension

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Reference no: EM13943485

Gordon Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2014 and 2015.

	2014		2015
Plan assets (fair value), December 31	$1,423,863		$1,729,413
Projected benefit obligation, January 1	1,425,900		1,629,600
Pension asset/liability, January 1	285,180	Cr.	?
Prior service cost, January 1	509,250		488,880
Service cost	122,220		183,330
Actual and expected return on plan assets	48,888		61,110
Amortization of prior service cost	20,370		24,444
Contributions (funding)	234,255		244,440
Accumulated benefit obligation, December 31	1,018,500		1,120,350
Interest/settlement rate	8	%	8	%

a. Compute pension expense for 2014 and 2015.

b. Prepare the journal entries to record the pension expense and the company's funding of the pension plan for both years.

Reference no: EM13943485

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