Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2021 (the end of...
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Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2021 (the end of Beale's fiscal year), the following pension-related data were available ($ in millions) $520 Projected Benefit obligation Balance, January 1, 2021 Service cost Interest cost, discount rate, 5X Gain due to changes in actuarial assumptions in 2021 Pension benefits paid Balance, Decenber 31, 2021 54 26 (10) (26) 5 564 s in millions) $ 540 Plan Assets Balance, January 1, 2021 Actual return on plan assets (Expected return on plan assets, $41) Cash contributions Pension benefits paid Balance, Dec ember 31, 2021 36 77 (26) $ 627 January 1, 2021, balances: Pension asset Prior service cost-AOCI (amortization $4 per year) Net gain-AOCI (any amortization over 10 years) (s in millions) $20 20 94 Required: 1. to 3. Prepare the 2021 journal entries to record pension expense, to record any 2021 gains and losses and the contribution to plan assets and benefit payments to retirees. 4. Determine the balances at December 31, 2021, in the PBO, plan assets, the net gain-AOCI, and prior service cost-AOCI (Hint: You might find T-accounts useful.) 5. What amount will Beale report in its 2021 balance sheet as a net pension asset or net pension llability for the funded status of the plan? Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2021 (the end of Beale's fiscal year), the following pension-related data were available ($ in millions) $520 Projected Benefit obligation Balance, January 1, 2021 Service cost Interest cost, discount rate, 5X Gain due to changes in actuarial assumptions in 2021 Pension benefits paid Balance, Decenber 31, 2021 54 26 (10) (26) 5 564 s in millions) $ 540 Plan Assets Balance, January 1, 2021 Actual return on plan assets (Expected return on plan assets, $41) Cash contributions Pension benefits paid Balance, Dec ember 31, 2021 36 77 (26) $ 627 January 1, 2021, balances: Pension asset Prior service cost-AOCI (amortization $4 per year) Net gain-AOCI (any amortization over 10 years) (s in millions) $20 20 94 Required: 1. to 3. Prepare the 2021 journal entries to record pension expense, to record any 2021 gains and losses and the contribution to plan assets and benefit payments to retirees. 4. Determine the balances at December 31, 2021, in the PBO, plan assets, the net gain-AOCI, and prior service cost-AOCI (Hint: You might find T-accounts useful.) 5. What amount will Beale report in its 2021 balance sheet as a net pension asset or net pension llability for the funded status of the plan?
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Part 4 Balances on Dec 31 2021 in millions PBO 564 Plan assets 627 Net gain AOCI 95 Prior service co... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
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