The following data relate to the defined benefit pension plan of the Youngblood Corp

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The following data relate to the defined benefit pension plan of the Youngblood Corp. for the years 2004-2006:

 

Year	Net Periodic Pension Cost	Employer Contributions	Benefits Paid to Retirees	Actual Return on Fund Assets
2004	$255,000	$300,000	$105,000	$120,000
2005	300,000	300,000	114,000	150,000
2006	315,000	300,000	120,000	156,000

 

At December 31, 2003, the books of Youngblood Corp. reflected accrued pension cost of

$30,000. The fair value of pension fund assets at that date was $1,380,000. The pension fund is administered by an independent trustee.

 

1. 1. Prepare the summary journal entries relating to the pension plan that would be re- quired on the books of Youngblood Corp. for 2004, 2005, and 2006.
   2. Determine the balance of the prepaid/accrued pension cost account at December 31, 2006.
   3. Compute the fair value of pension fund assets as of December 31, 2006.