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Abbott and Abbott has a noncontributory, defined benefit pension plan. At December 31, 2024, Abbott and Abbott received the following information: Projected Benefit Obligation ($ in millions) Balance, January 1 $ 150 Service cost 30 Interest cost 12 Benefits paid Balance, December 31 $184 Plan Assets Balance, January 1 $125 Actual return on plan assets 11 Contributions 2021 30 Benefits paid (8) Balance, December 31 $ 158 The expected long-term rate of return on plan assets was 8%. There was no prior service cost and a negligible net loss-AOCI on January 1, 2024. Required: 1. Determine Abbott and Abbott's pension expense for 2024. 2. Prepare the journal entries to record Abbott and Abbott's (a) pension expense, (b) funding, and (c) payment for 2024.

Abbott and Abbott has a noncontributory, defined benefit pension plan. At December 31, 2024, Abbott and Abbott received the following information: Projected Benefit Obligation ($ in millions) Balance, January 1 $ 150 Service cost 30 Interest cost 12 Benefits paid Balance, December 31 $184 Plan Assets Balance, January 1 $125 Actual return on plan assets 11 Contributions 2021 30 Benefits paid (8) Balance, December 31 $ 158 The expected long-term rate of return on plan assets was 8%. There was no prior service cost and a negligible net loss-AOCI on January 1, 2024. Required: 1. Determine Abbott and Abbott's pension expense for 2024. 2. Prepare the journal entries to record Abbott and Abbott's (a) pension expense, (b) funding, and (c) payment for 2024.

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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Abbott and Abbott has a noncontributory, defined benefit pension plan. At December 31, 2024, Abbott and Abbott received the following information: Projected Benefit Obligation ($ in millions) Balance, January 1 $ 150 Service cost 30 Interest cost Benefits paid Balance, December 31 12 Plan Assets Balance, January 1 $ 125 Actual return on plan assets 11 Contributions 2021 30 Benefits paid Balance, December 31 (8) $184 Required 1 Required 2 The expected long-term rate of return on plan assets was 8%. There was no prior service cost and a negligible net loss-AOCI on January 1, 2024. Required: 1. Determine Abbott and Abbott's pension expense for 2024. 2. Prepare the journal entries to record Abbott and Abbott's (a) pension expense, (b) funding, and (c) payment for 2024. (8) $ 158 Complete this question by entering your answers in the tabs below. Pension expense Determine Abbott and Abbott's pension expense for 2024. Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Pension Expense $ < Required 1 Required 2 >
Transcribed Image Text:Abbott and Abbott has a noncontributory, defined benefit pension plan. At December 31, 2024, Abbott and Abbott received the following information: Projected Benefit Obligation ($ in millions) Balance, January 1 $ 150 Service cost 30 Interest cost Benefits paid Balance, December 31 12 Plan Assets Balance, January 1 $ 125 Actual return on plan assets 11 Contributions 2021 30 Benefits paid Balance, December 31 (8) $184 Required 1 Required 2 The expected long-term rate of return on plan assets was 8%. There was no prior service cost and a negligible net loss-AOCI on January 1, 2024. Required: 1. Determine Abbott and Abbott's pension expense for 2024. 2. Prepare the journal entries to record Abbott and Abbott's (a) pension expense, (b) funding, and (c) payment for 2024. (8) $ 158 Complete this question by entering your answers in the tabs below. Pension expense Determine Abbott and Abbott's pension expense for 2024. Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Pension Expense $ < Required 1 Required 2 >
Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entries to record Abbott and Abbott's (a) pension expense, (b) funding, and (c) payment for 2024. 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 (i.e., 10,000,000 should be entered as 10). View transaction list Journal entry worksheet 1 2 Record the pension expense. Transaction 1 3 Note: Enter debits before credits. Record entry General Journal Clear entry Debit Credit View general journal >
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entries to record Abbott and Abbott's (a) pension expense, (b) funding, and (c) payment for 2024. 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 (i.e., 10,000,000 should be entered as 10). View transaction list Journal entry worksheet 1 2 Record the pension expense. Transaction 1 3 Note: Enter debits before credits. Record entry General Journal Clear entry Debit Credit View general journal >
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