Actuary and trustee reports indicate the following changes in the PBO and plan assets of Douglas-Roberts Industriesduring 2021:Prior service cost at Jan. 1, 2021, from plan amendment at thebeginning of 2018 (amortization: $2 million per year)$ 14 millionNet loss-AOCI at Jan.1, 2021 (previous losses exceeded previous gains)Average remaining service life of the active employee groupActuary's discount rate$210 million10 years7%($ in millions)PlanAssetsPBO$ 700Beginning of 2021Service cost64Beginning of 2021Return on plan assets,8% (10% expected)Interest cost, 7%49(16)Cash contributionsLoss (gain) on PBOLess: Retiree benefits(37)Less: Retiree benefitsEnd of 2021$ 760End of 2021$ 606Required:1-a. Determine Douglas-Roberts's pension expense for 2021.1-b, 2. to 4. Prepare the appropriate journal entries to record the pension expense, to record any 2021 gains andlosses, to record the cash contribution to plan assets and to record retiree benefits.$ 50040103(37)

Particulars Amount (in $ millions) Net loss-AOCI $210 Less : 10% of beginning PBO (10% x…

Actuary and trustee reports indicate the following changes in the PBO and plan assets of Douglas-Roberts Industries during 2021: Prior service cost at Jan. 1, 2021, from plan amendment at the beginning of 2018 (amortization: $2 million per year) $ 14 million Net loss-AOCI at Jan.1, 2021 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate $210 million 10 years 7% ($ in millions) Plan Assets PBO $ 700 $ 500 Beginning of 2021 Service cost 64 Beginning of 2021 Return on plan assets, 8% (10% expected) 40 49 Interest cost, 7% Loss (gain) on PBO Less: Retiree benefits (16) Cash contributions 103 (37) Less: Retiree benefits (37) End of 2021 $ 760 End of 2021 $ 606 Required: 1-a. Determine Douglas-Roberts's pension expense for 2021. 1-b, 2. to 4. Prepare the appropriate journal entries to record the pension expense, to record any 2021 gains and losses, to record the cash contribution to plan assets and to record retiree benefits.

Actuary and trustee reports indicate the following changes in the PBO and plan assets of Douglas-Roberts Industries during 2021: Prior service cost at Jan. 1, 2021, from plan amendment at the beginning of 2018 (amortization: $2 million per year) $ 14 million Net loss-AOCI at Jan.1, 2021 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate $210 million 10 years 7% ($ in millions) Plan Assets PBO $ 700 $ 500 Beginning of 2021 Service cost 64 Beginning of 2021 Return on plan assets, 8% (10% expected) 40 49 Interest cost, 7% Loss (gain) on PBO Less: Retiree benefits (16) Cash contributions 103 (37) Less: Retiree benefits (37) End of 2021 $ 760 End of 2021 $ 606 Required: 1-a. Determine Douglas-Roberts's pension expense for 2021. 1-b, 2. to 4. Prepare the appropriate journal entries to record the pension expense, to record any 2021 gains and losses, to record the cash contribution to plan assets and to record retiree benefits.

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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