Gordon Company sponsors a defined benefit plan. The following information related to the pension plan is available for 2010 and 2011.

2010 2011
Plan assets (fair value), Dec. 31 $699,000 $849,000
Projected benefit obligation, Jan. 1 700,000 800,000
Pension asset/liability, Jan. 1 140,000 Cr ?
Prior service cost, Jan. 1 250,000 240,000
Service cost 60,000 90,000
Actual return on plan assets 24,000 30,000
Amortization of prior service cost 10,000 12,000
Contributions (funding) 115,000 120,000
Accum. Benefit obligation, Dec 31 500,000 550,000
Interest/settlement rate 9% 9%

(a) Pension Expense 2010
(b) Pension Expense 2011
(c) Prepare journal entries.

What you need to do is read the text on accounting for pension plans and apply it. Post your work and we will comment