A company has a noncontributory, defined benefit pension plan. On December 31 of the current year (the end of the company's fiscalyear), the following pension-related data were available:Projected Benefit ObligationBalance, January 1, current yearService costInterest cost, discount rate, 5%Gain due to changes in actuarial assumptions in current yearPension benefits paidBalance, December 31, current yearPlan AssetsBalance, January 1, current yearActual return on plan assets(Expected return on plan assets, $46)Cash contributionsPension benefits paidBalance, December 31, current yearJanuary 1, current year, balances:Pension assetPrior service cost-AOCI (amortization $8 per year)Net gain-AOCI (any amortization over 10 years)(5 in millions)Balance, January 1, current yearService costInterest cost, 5%Expected return on assetsAdjust forLoss on assetsAmortization ofPrior service costNet gainGain on PBOCash fundingRetiree benefitsBalance, December 31, curent yearPBOS(620)(64)(31)Required:Prepare a pension spreadsheet to show the relationship among the PBO, plan assets, prior service cost, the net gain, pensionexpense, and the net pension asset.Note: Enter credit amounts with a minus sign and debit amounts with a positive sign. Enter your answers in millions (I.e..10,000,000 should be entered as 10).15($ in millions)$ 65041PlanAssets311 (000) $82(31)$742(31)(31) $PriorServiceCost-AOCI(5 in millions)$ 62005Net Gain-AOCI6431(15)(31)$.669(5 in millions)$.3040115.0 SPensionExpenseCashNet Pension(Liability)/Asset

A pension plan in accounting is a formal arrangement formed by an organization to give retirement…

A company has a noncontributory, defined benefit pension plan. On December 31 of the current year (the end of the company's fiscal year), the following pension-related data were available: Projected Benefit Obligation Balance, January 1, current year Service cost Interest cost, discount rate, 5% Gain due to changes in actuarial assumptions in current year Pension benefits paid Balance, December 31, current year Plan Assets Balance, January 1, current year Actual return on plan assets (Expected return on plan assets, $46) Cash contributions Pension benefits paid Balance, December 31, current year January 1, current year, balances: Pension asset (s in millions) $ 650 41 Prior service cost-AOCI (amortization $8 per year) Net gain-AOCI (any amortization over 10 years) 82 (31) $742 (s in millions) $620 64 31 (15) (31) $.669 (5 in millions) $.30 40 115 Required: Prepare a pension spreadsheet to show the relationship among the PBO, plan assets, prior service cost, the net gain, pension expense, and the net pension asset. Note: Enter credit amounts with a minus sign and debit amounts with a positive sign. Enter your answers in millions fin 10,000,000 should be entered as 10).

A company has a noncontributory, defined benefit pension plan. On December 31 of the current year (the end of the company's fiscal year), the following pension-related data were available: Projected Benefit Obligation Balance, January 1, current year Service cost Interest cost, discount rate, 5% Gain due to changes in actuarial assumptions in current year Pension benefits paid Balance, December 31, current year Plan Assets Balance, January 1, current year Actual return on plan assets (Expected return on plan assets, $46) Cash contributions Pension benefits paid Balance, December 31, current year January 1, current year, balances: Pension asset (s in millions) $ 650 41 Prior service cost-AOCI (amortization $8 per year) Net gain-AOCI (any amortization over 10 years) 82 (31) $742 (s in millions) $620 64 31 (15) (31) $.669 (5 in millions) $.30 40 115 Required: Prepare a pension spreadsheet to show the relationship among the PBO, plan assets, prior service cost, the net gain, pension expense, and the net pension asset. Note: Enter credit amounts with a minus sign and debit amounts with a positive sign. Enter your answers in millions fin 10,000,000 should be entered as 10).

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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The following refers to the pension spreadsheet (columns have missing amounts) for the current year for Ng Enterprises. ($ in millions) Debit(Credit) PBO Plan Assets Prior Service Cost Net (Gain)/Loss Pension Expense Cash Net Pension (Liability)/Asset Beginning balance 450 60 55 50 Service cost (85) Interest cost (25) Expected return on assets 55 Gain/loss on assets 3 Amortization of: Prior service cost Net gain/loss (1) Loss on PBO (65) Contributions to fund 40 Retiree benefits paid Ending balance (530) 54 122 What were the retiree benefits paid?
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