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Question - 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. At 10% discount rate was used. The expected (and actual) rate of return on plan assets was 12%.
REQUIRED - Prepare journal entries for December 31, 2010 and 2011, assuming:
a. Funding equaled expense.
b. $31,000 was funded each year.
c. $38.000 was funded each year.
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