70.2K

Verified Solution

Link Copied!

please help

Beate Management has a noncontributory, defined benefit pension plan. On December 31, 2021 (the end of Beate's fiscal year), the following pension-related data were available: Projected Benefit obligation (5 in millions) Balance, January 1, 2023 $ 460 Service cost 48 Interest cost, discount rate, 5 23 Gain due to changes in actuarial assumptions in 2021 (14) Pension benefits paid (23) Balance, December 31, 2021 $ 494 (5 in millions) $ 480 33 Plan Assets Balance, January 1, 2021 Actual return on plan assets (Expected return on plan assets, $38) Cash contributions Pension benefits paid Balance, December 31, 2021 74 (23) $564 January 1, 2021. balances Pension asset Prior service cost-AOCI (amortization $7 per year) Net gain-ADCI (any amortization over 10 years) (5 in millions) $ 20 49 88 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 liability for the funded status of the plan? Complete this question by entering your answers in the tabs below. Req i to Reg4 Reqs 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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions, (i.e., 10,000,000 should be entered as 10).) Journal entry worksheet

Answer & Explanation Solved by verified expert

See Answer