A company's defined benefit pension plan had a PBO of $269,000 on Jan A company's defined benefit pension plan had a PBO | Page 7

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Colombo Enterprises has a defined benefit pension plan. At the end of the
reporting year, the following data were available: beginning PBO, $80,000;
service cost, $17,500; interest cost, $6,700; benefits paid for the year, $8,000;
ending PBO, $96,200; and the expected return on plan assets, $12,000. There
were no other pension-related costs. The journal entry to record the annual
pension costs will include a debit to pension expense for:

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Castillo Company has a defined benefit pension plan. At the end of the reporting
year, the following data were available: beginning PBO, $75,000; service cost,
$18,000; interest cost, $5,000; benefits paid for the year, $9,000; ending PBO,
$89,000; the expected return on plan assets, $10,000; and cash deposited with
pension trustee, $17,000. There were no other pension-related costs. The
journal entry to record the annual pension costs will include a credit to the PBO
for:

$12,200.
$24,200.
$5,500.
$10,800.