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4-a. Determine Lakeside's pension expense for 2025. 4-b. Prepare the appropriate journal entries to record the expense, the cash funding of plan assets, and payment of benefits to retirees.

4-a. Determine Lakeside's pension expense for 2025. 4-b. Prepare the appropriate journal entries to record the expense, the cash funding of plan assets, and payment of benefits to retirees.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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4-a. Determine Lakeside's pension expense for 2025. 4-b. Prepare the appropriate Journal entries to record the expense, the cash funding of plan assets, and payment of benefits to retirees. Complete this question by entering your answers in the tabs below. Req 4A Req 48 Prepare the appropriate journal entries to record the expense, the cash funding of plan assets, and payment of benefits to retirees. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). No 1 2 3 Transaction 1 2 3 Answer is complete but not entirely correct. Plan assets Cash Pension expense Plan assets PBO Amortization of prior service cost-OCI Amortization of net loss-OCI PBO Plan assets General Journal < Req 4A Rey 40 00000 >> >> O Debit 57.2 x 30.0 31.0 17.0 Credit 75.0 Show less A 5.0 7.28 31.0 17.0
Transcribed Image Text:4-a. Determine Lakeside's pension expense for 2025. 4-b. Prepare the appropriate Journal entries to record the expense, the cash funding of plan assets, and payment of benefits to retirees. Complete this question by entering your answers in the tabs below. Req 4A Req 48 Prepare the appropriate journal entries to record the expense, the cash funding of plan assets, and payment of benefits to retirees. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). No 1 2 3 Transaction 1 2 3 Answer is complete but not entirely correct. Plan assets Cash Pension expense Plan assets PBO Amortization of prior service cost-OCI Amortization of net loss-OCI PBO Plan assets General Journal < Req 4A Rey 40 00000 >> >> O Debit 57.2 x 30.0 31.0 17.0 Credit 75.0 Show less A 5.0 7.28 31.0 17.0
Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2024: Prior service cost at January 1, 2024, from plan amendment at the beginning of 2022 (amortization: $5 million per year) Net loss pensions at January 1, 2024 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate ($ in millions) Beginning of 2824 Service cost Interest cost, 10% Loss (gain) on PBO Less: Retiree benefits End of 2824 Beginning of 2025 Service cost Interest cost, let Loss (gain) on PBO Less: Retiree benefits End of 2025 Req 4A Req 48 РВО $ 310 49 31 (3) (27) $ 360 Assume the following actuary and trustee reports indicating changes in the PBO and plan assets of Lakeside Cable during 2025: ($ in millions) Pension expense 2025 S PBO $ 360 39 36 57.2 million Beginning of 2024 Return on plan assets, s.et (set expected) 6 (17) $ 424 Cash contributions Less: Retiree benefits End of 2024 Complete this question by entering your answers in the tabs below. Beginning of 2825 Return on plan assets, 16% (10% expected) Cash contributions. Less: Retiree benefits End of 2025 Answer is complete but not entirely correct. $ 33 million $ 41 million 10 years 10% 4-a. Determine Lakeside's pension expense for 2025. 4-b. Prepare the appropriate journal entries to record the expense, the cash funding of plan assets, and payment of benefits to retirees. Plan Assets $250 Determine Lakeside's pension expense for 2025. Note: Enter your answers in millions rounded to 1 decimal place (Le, 5,500,000 should be entered as 5.5). Req 48 > 20 57 (27) $300 Plan Assets $: 300 48 31 (17) $: 362
Transcribed Image Text:Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2024: Prior service cost at January 1, 2024, from plan amendment at the beginning of 2022 (amortization: $5 million per year) Net loss pensions at January 1, 2024 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate ($ in millions) Beginning of 2824 Service cost Interest cost, 10% Loss (gain) on PBO Less: Retiree benefits End of 2824 Beginning of 2025 Service cost Interest cost, let Loss (gain) on PBO Less: Retiree benefits End of 2025 Req 4A Req 48 РВО $ 310 49 31 (3) (27) $ 360 Assume the following actuary and trustee reports indicating changes in the PBO and plan assets of Lakeside Cable during 2025: ($ in millions) Pension expense 2025 S PBO $ 360 39 36 57.2 million Beginning of 2024 Return on plan assets, s.et (set expected) 6 (17) $ 424 Cash contributions Less: Retiree benefits End of 2024 Complete this question by entering your answers in the tabs below. Beginning of 2825 Return on plan assets, 16% (10% expected) Cash contributions. Less: Retiree benefits End of 2025 Answer is complete but not entirely correct. $ 33 million $ 41 million 10 years 10% 4-a. Determine Lakeside's pension expense for 2025. 4-b. Prepare the appropriate journal entries to record the expense, the cash funding of plan assets, and payment of benefits to retirees. Plan Assets $250 Determine Lakeside's pension expense for 2025. Note: Enter your answers in millions rounded to 1 decimal place (Le, 5,500,000 should be entered as 5.5). Req 48 > 20 57 (27) $300 Plan Assets $: 300 48 31 (17) $: 362
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