Actuary and trustee reports indicate the following changes in the PBO and plan assets of...
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Actuary and trustee reports indicate the following changes in the PBO and plan assets of Sporting Industries during 2021 Prior service cost at Jan. 1, 2021, from plan amendment at the beginning of 2018 (amortization: 52 $14 million million per year) Net loss Act at Jan.1, 2e21 (previous losses exceeded previous gains) $40 million Average remaining service life of the active employee group 10 years Actuary's discount rate 7% PLAN ASSETS $200 16 ($ in millions) Beginning of 2021 Service cost Interest cost, 7% Loss (gain) on PBO Less: Retiree benefits End of 2021 $300 4e 21 (7) (19) $335 Beginning of 2021 Return on plan assets, 8% (10% expected) Cash contributions Less: Retiree benefits End of 2021 45 (19) $242 Required: 1. Determine Sporting's pension expense for 2021 and prepare the appropriate journal entries to record the expense as well as the cash contribution to plan assets. 2. Prepare the appropriate journal entries to record any 2021 gains and losses. (For all requirement, if no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet 2 3 Record entry for Pension expenses and expected return on plan assets. Note: Enter debits before credits. General Journal Debit Credit Transaction 1-a Record entry Clear entry View general journal Journal entry worksheet N 3 Record transaction for Cash contribution to plan assets. Note: Enter debits before credits. General Journal Debit Credit Transaction 1-b Record entry Clear entry View general journal Journal entry worksheet 2 3 > Record the loss on expected return on the plan assets. Note: Enter debits before credits. General Journal Debit Credit Transaction 2-a Record entry Clear entry View general journal Journal entry worksheet 2 3 Record the gain from change in assumption regarding the Projected Benefit Obligation. Note: Enter debits before credits. General Journal Debit Credit Transaction 2-b Record entry Clear entry View general journal





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