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A partially completed pension spreadsheet showing the relationships, among the elements that constitute Carney, Incorporated's defined benefit pension plan follows. Six years earlier, Carney revised its pension formula and recalculated benefits earned by employees in prior years using the more generous formula. The prior service cost created by the recalculation is being amortized at the rate of $5 million per year. At the end of 2024, the pension formula was amended again, creating an additional prior service cost of $40 million. The expected rate of return on assets and the actuary's discount rate were 10%, and the average remaining service life of the active employee group is 10 years. Required: 1. Fill in the missing amounts. 2. Prepare the 2024 journal entry to record pension expense. 3. Prepare the journal entry(s) to record any 2024 gains and losses and new prior service cost in 2024. 4. Prepare the 2024 journal entries to record (a) the cash contribution to plan assets and (b) the payment of retiree benefits. * Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2 to 4 Fill in the missing amounts. Note: Enter credit amounts with a minus sign and debit amounts with a positive sign. Enter your answers in millions (i.e., 10,000,000 should be en as 10). ($ in millions) Balance, January 1, 2024 Service cost Interest cost Expected return on assets Adjust for: Loss on assets Amortization of: Prior service cost Net loss Loss on PBO PBO Plan Assets Prior Service Cost- AOCI Net Loss- AOCI Pension Expense Cash (830) 880 20 93 (74) 74 Net Pension (Liability) or Asset (150) (13) Prior service cost Cash funding 84 Retiree benefits Balance, December 31, 2024 (904) 775 20 93 74 (79)

A partially completed pension spreadsheet showing the relationships, among the elements that constitute Carney, Incorporated's defined benefit pension plan follows. Six years earlier, Carney revised its pension formula and recalculated benefits earned by employees in prior years using the more generous formula. The prior service cost created by the recalculation is being amortized at the rate of $5 million per year. At the end of 2024, the pension formula was amended again, creating an additional prior service cost of $40 million. The expected rate of return on assets and the actuary's discount rate were 10%, and the average remaining service life of the active employee group is 10 years. Required: 1. Fill in the missing amounts. 2. Prepare the 2024 journal entry to record pension expense. 3. Prepare the journal entry(s) to record any 2024 gains and losses and new prior service cost in 2024. 4. Prepare the 2024 journal entries to record (a) the cash contribution to plan assets and (b) the payment of retiree benefits. * Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2 to 4 Fill in the missing amounts. Note: Enter credit amounts with a minus sign and debit amounts with a positive sign. Enter your answers in millions (i.e., 10,000,000 should be en as 10). ($ in millions) Balance, January 1, 2024 Service cost Interest cost Expected return on assets Adjust for: Loss on assets Amortization of: Prior service cost Net loss Loss on PBO PBO Plan Assets Prior Service Cost- AOCI Net Loss- AOCI Pension Expense Cash (830) 880 20 93 (74) 74 Net Pension (Liability) or Asset (150) (13) Prior service cost Cash funding 84 Retiree benefits Balance, December 31, 2024 (904) 775 20 93 74 (79)

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
Section: Chapter Questions
Problem 1E
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A partially completed pension spreadsheet showing the relationships, among the elements that constitute Carney, Incorporated's defined benefit pension plan follows. Six years earlier, Carney revised its pension formula and recalculated benefits earned by employees in prior years using the more generous formula. The prior service cost created by the recalculation is being amortized at the rate of $5 million per year. At the end of 2024, the pension formula was amended again, creating an additional prior service cost of $40 million. The expected rate of return on assets and the actuary's discount rate were 10%, and the average remaining service life of the active employee group is 10 years. Required: 1. Fill in the missing amounts. 2. Prepare the 2024 journal entry to record pension expense. 3. Prepare the journal entry(s) to record any 2024 gains and losses and new prior service cost in 2024. 4. Prepare the 2024 journal entries to record (a) the cash contribution to plan assets and (b) the payment of retiree benefits. * Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2 to 4 Fill in the missing amounts. Note: Enter credit amounts with a minus sign and debit amounts with a positive sign. Enter your answers in millions (i.e., 10,000,000 should be en as 10). ($ in millions) Balance, January 1, 2024 Service cost Interest cost Expected return on assets Adjust for: Loss on assets Amortization of: Prior service cost Net loss Loss on PBO PBO Plan Assets Prior Service Cost- AOCI Net Loss- AOCI Pension Expense Cash (830) 880 20 93 (74) 74 Net Pension (Liability) or Asset (150) (13) Prior service cost Cash funding 84 Retiree benefits Balance, December 31, 2024 (904) 775 20 93 74 (79)
Transcribed Image Text:A partially completed pension spreadsheet showing the relationships, among the elements that constitute Carney, Incorporated's defined benefit pension plan follows. Six years earlier, Carney revised its pension formula and recalculated benefits earned by employees in prior years using the more generous formula. The prior service cost created by the recalculation is being amortized at the rate of $5 million per year. At the end of 2024, the pension formula was amended again, creating an additional prior service cost of $40 million. The expected rate of return on assets and the actuary's discount rate were 10%, and the average remaining service life of the active employee group is 10 years. Required: 1. Fill in the missing amounts. 2. Prepare the 2024 journal entry to record pension expense. 3. Prepare the journal entry(s) to record any 2024 gains and losses and new prior service cost in 2024. 4. Prepare the 2024 journal entries to record (a) the cash contribution to plan assets and (b) the payment of retiree benefits. * Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2 to 4 Fill in the missing amounts. Note: Enter credit amounts with a minus sign and debit amounts with a positive sign. Enter your answers in millions (i.e., 10,000,000 should be en as 10). ($ in millions) Balance, January 1, 2024 Service cost Interest cost Expected return on assets Adjust for: Loss on assets Amortization of: Prior service cost Net loss Loss on PBO PBO Plan Assets Prior Service Cost- AOCI Net Loss- AOCI Pension Expense Cash (830) 880 20 93 (74) 74 Net Pension (Liability) or Asset (150) (13) Prior service cost Cash funding 84 Retiree benefits Balance, December 31, 2024 (904) 775 20 93 74 (79)
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