Jones Dept store, Inc Pension Plan for 2011. Accumulated benefit obligation(at year end) $600,000 Service Cost 520,000 Funding Contribution

Jones Dept store, Inc Pension Plan for 2011.

Accumulated benefit obligation(at year end) $600,000

Service Cost 520,000

Funding Contribution for 2011 500,000

Settlement rate used in actuarial computation 10%

Expected return on plant assets 9%

Amortization of PSC(due to benefit increase) 100,000

Amortization of net gains 48000

Projected benefit obligation(at beginning of

period) 480,000

Market Related (andfair) value of plan

assets(at beginning of period) 360,000

a. Compute the amount of pension expense to be reported for 2011.(show computations)

b. Prepare the journal entry to record pension expense and the employers contribution for 2011.

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