E20-1 (Pension Expense, Journal Entries) The following information is available for the pension plan of Radcliffe Company for the year 2012.
Actual and expected return on plan assets $15,000
Benefits paid to retirees $40,000
Contributions (funding) $90,000
Interest/discount rate 10%
Prior service cost amortization $8,000
Projected benefit obligation, January 1, 2012 $500,000
Service cost $60,000
(a) Compute pension expense for the year 2012.
(b) Prepare the journal entry to record pension expense and the employer’s contribution to the pension plan in 2012.
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