Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2021: Prior service cost at Jan. 1, 2021, from plan amendment at the beginning of 2019 (amortization: $5 million per year) Net loss-pensions at Jan.1, 2021 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate ($ in millions) Beginning of 2021 Service cost Interest cost, 9% Loss (gain) on PBO Less: Retiree benefits End of 2021 PBO $200 90 18 (2) (6) Less: Retiree benefits $300 End of 2021 Beginning of 2022 Service cost Interest cost, 9% Loss (gain) on PBO Less: Retiree benefits End of 2022 PBO $300 41 27 4 (19) Beginning of 2021 Return on plan assets, 8.0 % (10 % expected) Cash contributions $353 Plan Assets $150 Beginning of 2022 Return on plan assets, 15 % (10 % expected) Cash contributions Less: Retiree benefits End of 2022 12 44 (6) Assume the following actuary and trustee reports indicating changes in the PBO and plan assets of Lakeside Cable during 2022: ($ in millions) $200 Plan Assets $200 30 33 (19) $35 million $50 million $244 10 years 9%
Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2021: Prior service cost at Jan. 1, 2021, from plan amendment at the beginning of 2019 (amortization: $5 million per year) Net loss-pensions at Jan.1, 2021 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate ($ in millions) Beginning of 2021 Service cost Interest cost, 9% Loss (gain) on PBO Less: Retiree benefits End of 2021 PBO $200 90 18 (2) (6) Less: Retiree benefits $300 End of 2021 Beginning of 2022 Service cost Interest cost, 9% Loss (gain) on PBO Less: Retiree benefits End of 2022 PBO $300 41 27 4 (19) Beginning of 2021 Return on plan assets, 8.0 % (10 % expected) Cash contributions $353 Plan Assets $150 Beginning of 2022 Return on plan assets, 15 % (10 % expected) Cash contributions Less: Retiree benefits End of 2022 12 44 (6) Assume the following actuary and trustee reports indicating changes in the PBO and plan assets of Lakeside Cable during 2022: ($ in millions) $200 Plan Assets $200 30 33 (19) $35 million $50 million $244 10 years 9%
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 8RE
Related questions
Question
Determine the new gains and/or losses in 2022, and prepare the appropriate
1. Journal entry to record losses.
2. Journal entry to record gains.
![Required information
[The following information applies to the questions displayed below.]
Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2021:
Prior service cost at Jan. 1, 2021, from plan amendment at the
beginning of 2019 (amortization: $5 million per year)
Net loss-pensions at Jan.1, 2021 (previous losses exceeded previous gains)
Average remaining service life of the active employee group
Actuary's discount rate
($ in millions)
Beginning of 2021
Service cost
Interest cost, 9%
Loss (gain) on PBO
Less: Retiree benefits
End of 2021
Beginning of 2022
Service cost
PBO
$200
90
18
(2)
(6) Less: Retiree benefits
$300
End of 2021
Interest cost, 9%
Loss (gain) on PBO
Less: Retiree benefits
End of 2022
PBO
$300
41
27
4
(19)
Beginning of 2021
Return on plan assets,
8.0 % (10 % expected)
Cash contributions
$353
Assume the following actuary and trustee reports indicating changes in the PBO and plan assets of Lakeside Cable during
2022:
($ in millions)
Plan
Assets
$150
Beginning of 2022
Return on plan assets,
15% (10 % expected)
Cash contributions
Less: Retiree benefits
End of 2022
12
44
(6)
$200
Plan
Assets
$200
30
33
(19)
$35 million
$50 million
10 years
9%
$244](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4573d689-6edd-4857-83a3-30b3fa1e2df8%2F8296a614-24f8-48a5-9de8-923aae4a2615%2Fvsgn479_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2021:
Prior service cost at Jan. 1, 2021, from plan amendment at the
beginning of 2019 (amortization: $5 million per year)
Net loss-pensions at Jan.1, 2021 (previous losses exceeded previous gains)
Average remaining service life of the active employee group
Actuary's discount rate
($ in millions)
Beginning of 2021
Service cost
Interest cost, 9%
Loss (gain) on PBO
Less: Retiree benefits
End of 2021
Beginning of 2022
Service cost
PBO
$200
90
18
(2)
(6) Less: Retiree benefits
$300
End of 2021
Interest cost, 9%
Loss (gain) on PBO
Less: Retiree benefits
End of 2022
PBO
$300
41
27
4
(19)
Beginning of 2021
Return on plan assets,
8.0 % (10 % expected)
Cash contributions
$353
Assume the following actuary and trustee reports indicating changes in the PBO and plan assets of Lakeside Cable during
2022:
($ in millions)
Plan
Assets
$150
Beginning of 2022
Return on plan assets,
15% (10 % expected)
Cash contributions
Less: Retiree benefits
End of 2022
12
44
(6)
$200
Plan
Assets
$200
30
33
(19)
$35 million
$50 million
10 years
9%
$244
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning