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P 1716 Comprehensive-reporting a pension plan; pension spreadsheet; determine changes in balances; two years @L017-3 through L017-8 Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2021: Prior service cost at Jan. 1, 2021, from plan amendment at the $32 million beginning of 2019 (amortization: $4 million per year) Net loss-pensions at Jan.1, 2021 (previous losses exceeded previous gains) $40 million Average remaining service life of the active employee group 10 years Actuary's discount rate 8% ($ in millions) Plan PBO Assets Beginning of 2021 $300 Beginning of 2021 $200 Service cost 48 Return on plan assets, Interest cost, 8% 24 7.5% (10% expected) 15 Loss (gain) on PBO (2) Cash contributions 45 Less: Retiree benefits (20) Less: Retiree benefits (20) End of 2021 $350 End of 2021 $240 Required: 1. Determine Lakeside's pension expense for 2021, and prepare the appropriate journal entries to record the expense as well as the Page 1037 cash contribution to plan assets and payment of benefits to retirees. 2. Determine the new gains and/or losses in 2021 and prepare the appropriate journal entry(s) to record them. 3. Prepare a pension spreadsheet to assist you in determining end of 2021 balances in the PBO, plan assets, prior service cost-AOCI, the net loss-AOCI, and the pension liability. 4. Assume the following actuary and trustee reports indicating changes in the PBO and plan assets of Lakeside Cable during 2022 ($ in millions): Plan PBO Assets Beginning of 2022 $350 Beginning of 2022 $240 Service cost 38 Return on plan assets, Interest cost at 8% 28 15% (10% expected) 36 Loss (gain) on PBO 5 Cash contributions 30 Less: Retiree benefits (16) Less: Retiree benefits (16) End of 2022 $405 End of 2022 $290 Determine Lakeside's pension expense for 2022, 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 2022, and prepare the appropriate journal entry(s) to record them. 6. Using T-accounts, determine the balances at December 31, 2022, in the net loss-AOCI and prior service cost-AOCI. 7. Confirm the balances determined in requirement 6 by preparing a pension spreadsheet

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