Buffalo Company adopted a defined benefit pension plan as of January 1,2015.Buffalo has provided the following information pertaining to its pension plan:
• The projected benefit obligation as of January 1,2015 was determined to be $1,050,000.
• Service cost for 2015 is $225,000.
• Amortization of prior service cost will be $52,500 per year.
• The projected benefit obligation as of December 31,2015 was determined to be $1,380,000.
• The first contribution of $500,000 to the pension plan asset fund was made on December 31,2015.
• The settlement/discount rate is 10%.
Prepare the necessary journal entries for the year ended December 31,2015.

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The Answer of Buffalo Company adopted a defined benefit pension plan as of January 1,2015.Buffalo has provided the following information pertaining to its pension plan:
• The projected benefit obligation as of January 1,2015 was determined to be $1,050,000.
• Service cost for 2015 is $225,000.
• Amortization of prior service cost will be $52,500 per year.
• The projected benefit obligation as of December 31,2015 was determined to be $1,380,000.
• The first contribution of $500,000 to the pension plan asset fund was made on December 31,2015.
• The settlement/discount rate is 10%.
Prepare the necessary journal entries for the year ended December 31,2015.

Buffalo Company Adopted a Defined Benefit Pension Plan as of January