Acc422 Intermediate Accounting: P20-4 Mantle Company sponsors a defined benefit pension plan

Acc422 Intermediate Accounting
P20-4 Pension Expense, Minimum Liability, Journal Entries for 2 years
Mantle Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2012 and 2013.
2012 2013
Plan assets (fair value), December 31 380,000 465,000
Projected benefit obligation, January 1 600,000 700,000
Prepaid/(accrued) pension cost balance, January 1 (40,000) ?
Unrecognized prior service cost, January 1 250,000 240,000
Service cost   60,000 90,000
Actual and expected return on plan assets  24,000 30,000
Amortization of prior service cost           10,000 12,000
Contributions (funding) 110,000 120,000
Accumulated benefit obligation, December 31 500,000 550,000
Additional pension liability balance, January 1  50,000 ?
Interest/settlement rate 9% 9%

Instructions:
(a) Compute pension expense for 2012 and 2013.
(b) Prepare the journal entries to record the pension expense and the company’s funding of the pension plan for both years.
(c) Compute the minimum liability for 2012 and 2013.
(d) Prepare the journal entries to record the minimum liability for both years.
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