Actuary and trustee reports indicate the following changes in the PBO and plan assets of Douglas-Roberts Industries
Question:
Actuary and trustee reports indicate the following changes in the PBO and plan assets of Douglas-Roberts Industries during 2018:
Prior service cost at Jan. 1, 2018, from plan amendment at the
beginning of 2015 (amortization: $4 million per year).........................$28 million
Net loss-AOCI at Jan. 1, 2018 (previous losses exceeded
previous gains).......................................................................$80 million
Average remaining service life of the active employee group....................10 years
Actuary's discount rate.......................................................................7%
Required:
1. Determine Douglas-Roberts's pension expense for 2018, and prepare the appropriate journal entries to record the expense.
2. Prepare the appropriate journal entry(s) to record any 2018 gains and losses.
3. Prepare the appropriate journal entry to record the cash contribution to plan assets.
4. Prepare the appropriate journal entry to record retiree benefits.
Step by Step Answer:
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas