Answer:
1. Service cost $650,000
Interest on projected benefit $52,200
obligation (580,000)*9%
Expected return on plan -$37,600
assets ($470,000*8%)
Amortization of PSC $111,000
Amortization of Net gains <u>$59,000</u>
Pension Expenses - 2021 <u>$716,000</u>
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General Journal Debit Credit
Pension Expenses $716,000
Other Comprehensive Income (G/L) $59,000
Cash $590,000
Other Comprehensive Income (PSC) $111,000
Pension Asset/Liability $74,600
(To record pension expense and the employer's contribution for 2021)
