Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable

Question:

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 (amortization: $4 million per year) $32 million

Net loss-pensions at Jan.1, 2018 (previous losses exceeded previous gains).........$40 million

Average remaining service life of the active employee group..............................10 years

Actuary's discount rate.................................................................................8%

Actuary and trustee reports indicate the following changes in the

Required:
1. Determine Lakeside's pension expense for 2018, and prepare the appropriate journal entries to record the expense as well as the cash contribution to plan assets and payment of benefits to retirees.
2. Determine the new gains and/or losses in 2018 and prepare the appropriate journal entry(s) to record them.
3. Prepare a pension spreadsheet to assist you in determining end of 2018 balances in the PBO, plan assets, prior service cost-AOCI, the net loss-AOCI, and the pension liability.
4. Assume the following actuary and trustee reports indicating changes in the PBO and plan assets of Lakeside Cable during 2019 ($ in millions):

Determine Lakeside's pension expense for 2019, and prepare the appropriate journal entries to record the expense, the cash funding of plan assets, and payment of benefits to retirees.
5. Determine the new gains and/or losses in 2019, and prepare the appropriate journal entry(s) to record them.
6. Using T-accounts, determine the balances at December 31, 2019, in the net loss-AOCI and prior service cost-AOCI.
7. Confirm the balances determined in Requirement 6 by preparing a pension spreadsheet.