Reference no: EM133061151

Question - Sheridan Corporation applies ASPE and sponsors a defined benefit pension plan. The following pension plan information is available for 2020 and 2021:

	2020	2021
Plan assets (fair value), December 31	$521,400	$646,000
Defined benefit obligation, January 1	597,000	702,000
Net defined benefit liability (asset), January 1	240,100	?
Current service cost	59,970	91,000
Actual return on plan assets	23,200	47,100
Funding of current service cost	61,000	91,000
Funding of past service costs	89,000	59,000
Benefits paid	?	?
Interest/discount rate	9%	9%

The pension fund paid out benefits in each year. There were no actuarial gains or losses incurred on the DBO in the two-year period.

Required -

1. Calculate pension expense for 2020 and 2021.

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