Farley Incorporated instituted a defined benefit pension plan for its employees at the beginning of 2013. An actuarial method that is acceptable under GAAP indicates that the company should contribute $80,000 each year to the pension fund to cover the benefits that will be paid to the employees. Farley funded 80% in 2013 and 2014, 90% in 2015 and 2016, and 100 percent in 2017.
Required:
(1) Prepare the journal entries to accrue the pension liability and fund it for 2013 through 2017.
(2) Compute the balance in the pension liability account as of December 31, 2017.

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The Answer of Farley Incorporated instituted a defined benefit pension plan for its employees at the beginning of 2013. An actuarial method that is acceptable under GAAP indicates that the company should contribute $80,000 each year to the pension fund to cover the benefits that will be paid to the employees. Farley funded 80% in 2013 and 2014, 90% in 2015 and 2016, and 100 percent in 2017.
Required:
(1) Prepare the journal entries to accrue the pension liability and fund it for 2013 through 2017.
(2) Compute the balance in the pension liability account as of December 31, 2017.

Farley Incorporated Instituted a Defined Benefit Pension Plan for Its