60.1K

Verified Solution

Link Copied!

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: Projected Benefit Obligation ($ in millions) Balance, January 1, 2021 $ 480 Service cost Interest cost, discount rate, 5% Goin due to changes in actuarial assumptions in 2021 (8) Pension benefits paid (24) Balance, December 31, 2021 $ 522 50 24 (5 in millions) $500 34 Plon Assets Balance, January 1, 2021 Actual return on plan assets (Expected return on plan assets, $39) Cash contributions Pension benefits paid Balance, December 31, 2021 75 (24) $ 585 January 1, 2021, balances: Pension asset Prior service cost-AOCI (amortization $6 per year) Net gain-AOCI (any amortization over 10 years) ($ in millions) $ 20 42 90 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 Taccounts useful.) 5. What amount will Beale report in its 2021 balance sheet as a net pension asset or net pension liability for the funded status of the plan? Journal entry worksheet

Answer & Explanation Solved by verified expert

See Answer