Actuary and trustee reports indicate the following changes in the PBO and plan assets of Douglas-Roberts...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Actuary and trustee reports indicate the following changes in the PBO and plan assets of Douglas-Roberts Industries during 2021: Prior service cost at Jan. 1, 2021, from plan amendment at the beginning of 2018 (amortization: $4 million per year) Net loss-A0CI at Jan.1, 2021 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate $ 28 million $170 million 10 years ($ in millions) Plan PBO Assets Beginning of 2021 Service cost Beginning of 2021 Return on plan assets, 88 (10% expected) $700 $500 56 40 Interest cost, 7% Loss (gain) on PBO 49 (12) Cash contributions 99 Less: Retiree benefits (33) Less: Retiree benefits (33) End of 2021 $760 End of 2021 $606 Required: 1-a. Determine Douglas-Roberts's pension expense for 2021. 1-b, 2. to 4. Prepare the appropriate journal entries to record the pension expense, to record any 2021 gains and losses, to record the cash contribution to plan assets and to record retiree benefits. Req 1B and 2 to 4 Req 1A Determine Douglas-Roberts's pension expense for 2021. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Pension Expense Pension expense View transaction list X: > 1 Record annual pension expense. Record the change in plan assets. Record the change in the PBO. 4 Record the cash contribution to plan assets. Record the retiree benefits paid. Credit 2. Actuary and trustee reports indicate the following changes in the PBO and plan assets of Douglas-Roberts Industries during 2021: Prior service cost at Jan. 1, 2021, from plan amendment at the beginning of 2018 (amortization: $4 million per year) Net loss-A0CI at Jan.1, 2021 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate $ 28 million $170 million 10 years ($ in millions) Plan PBO Assets Beginning of 2021 Service cost Beginning of 2021 Return on plan assets, 88 (10% expected) $700 $500 56 40 Interest cost, 7% Loss (gain) on PBO 49 (12) Cash contributions 99 Less: Retiree benefits (33) Less: Retiree benefits (33) End of 2021 $760 End of 2021 $606 Required: 1-a. Determine Douglas-Roberts's pension expense for 2021. 1-b, 2. to 4. Prepare the appropriate journal entries to record the pension expense, to record any 2021 gains and losses, to record the cash contribution to plan assets and to record retiree benefits. Req 1B and 2 to 4 Req 1A Determine Douglas-Roberts's pension expense for 2021. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Pension Expense Pension expense View transaction list X: > 1 Record annual pension expense. Record the change in plan assets. Record the change in the PBO. 4 Record the cash contribution to plan assets. Record the retiree benefits paid. Credit 2.
Expert Answer:
Answer rating: 100% (QA)
Answer 1a Pension Expense for 2021 Pension Expense in Millions Service Cost 56 ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
Students also viewed these accounting questions
-
Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2011: Required: 1. Determine Lakeside's pension expense for 2011 and prepare the...
-
Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2018: Prior service cost at Jan. 1, 2018, from plan amendment at the beginning of 2016...
-
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...
-
Explain why Soil Taxonomy is said to be a hierarchical classification system.
-
Choose the member of each pair that will react faster by the SN1 mechanism. (a) 1-bromopropane or 2-bromopropane (b) 2-bromo-2-methylbutane or 2-bromo-3-methylbutane (c) n-propyl bromide or allyl...
-
Consider two countries, Japan and Korea. In 1996, Japan experienced relatively slow output growth (1%), whereas Korea had relatively robust output growth (6%). Suppose the Bank of Japan allowed the...
-
Using the density function of the stopping time probability for a fixed \(\lambda\), find the average time to the first event over the entire interval \([0, \infty)\).
-
7-B1 Prepare Master Budget Flying Fish Kite Company, a small Woy Woy, Australia, firm that sells kites on the Web, wants a master budget for the 3 months beginning January 1, 20X2. It desires an...
-
A string of length 0.650 m and a linear density of 2.02 x 10-3 kg/m is vibrating in the fundamental harmonic mode even as the tension is increased over time. How many oscillations does the string go...
-
Salazar Company is a job-order costing firm that uses activity-based costing to apply overhead to jobs. Salazar identified three overhead activities and related drivers. Budgeted information for the...
-
A pipe bend tapers from a diameter of 500mm at inlet to a diameter of 250mm at outlet and the flow is turned through 750. The pressures at inlet and outlet are 3.5 N/m2 and 2.5 N/m2. If the pipe is...
-
Describe and compare Lockheeds capitalized development costs and Livents capitalized preproduction costs.
-
How did the development costs at Lockheed and the preproduction costs at Livent differ from preproduction costs related to long-term supply arrangements?
-
The SECs enforcement action against Livent alleged that senior company officials had a special computer program designed that would enable accounting personnel to __________ the accounting system...
-
Explain how Livents improper deferral of expenses and Rite Aids improper recognition of vendor rebates shifted the recognition of expenses from one period to a later period.
-
Explain why Rite Aids failure to write down its ending inventory amountto agree with values determined by physical inventory countscaused it to overstate its income.
-
Teams need both task - oriented and social - oriented roles to function effectively Distributing tasks based on individual strengths is crucial for success The pilot with the most aircraft - specific...
-
Software Solution is family-owned business that has been in operation for more than 15 year. The board of directors is comprised of mainly family members, plus a few professionals such as an...
-
Semtech Manufacturing purchased land and building for $4 million. In addition to the purchase price, Semtech made the following expenditures in connection with the purchase of the land and building:...
-
Presented below is the 2011 income statement and comparative balance sheet information for Tiger Enterprises. Required: Prepare Tiger's statement of cash flows, using the indirect method to present...
-
Cedric Company recently traded in an older model computer for a new model. The old model's book value was $180,000 (original cost of $400,000 less $220,000 in accumulated depreciation) and its fair...
-
In early 2018, United Airlines (UAL) had a market capitalization of \($25.14\) billion, debt of \($12.73\) billion, and cash of \($5.59\) billion. United also had annual revenues of \($38.72\)...
-
See Table 2.5 showing financial statement data and stock price data for Mydeco Corp. Was Mydeco able to improve its ROIC in 2023 relative to what it was in 2019? TABLE 2.5 2019-2023 Financial...
-
Your firm has a risk-free investment opportunity where it can invest $163,000 today and receive $179,000 in one year. For what level of interest rates is this project attractive? (Round the interest...
Study smarter with the SolutionInn App