Karen Company began a defined benefit pension plan on January 1, 2016. No prior service credit was granted to employees. Service costs amounted to $34,000 in 2016 and $37,000 in 2017. All contributions to the fund were made at the end of the year. A 10% discount rate was used. The expected and actual) rate of return of plan assets was
12%.
Required:
Prepare journal entries for December 31, 2016 and 2017, assuming:
a. Funding equaled expense.
b. $31,000 was funded each year.
c. $38,000 was funded each year.

Question

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The Answer of Karen Company began a defined benefit pension plan on January 1, 2016. No prior service credit was granted to employees. Service costs amounted to $34,000 in 2016 and $37,000 in 2017. All contributions to the fund were made at the end of the year. A 10% discount rate was used. The expected and actual) rate of return of plan assets was
12%.
Required:
Prepare journal entries for December 31, 2016 and 2017, assuming:
a. Funding equaled expense.
b. $31,000 was funded each year.
c. $38,000 was funded each year.

Karen Company Began a Defined Benefit Pension Plan on January