Actuary and trustee reports indicate the following changes in the PBO and plan assets of Mahomes Industries during 2024: Prior service cost at January 1, 2024, from plan amendment at the beginning of 2021 (amortization: $20 million per year) Net loss-AOCI at January 1, 2024 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate ($ in millions) PBO Beginning of 2024 Service cost Interest cost, 7% Loss (gain) on PBO Less: Retiree benefits End of 2024 Required: Plan Assets Beginning of 2024 Return on plan assets, 8% (10% expected) $ 2,200 96 154 (30) Cash contributions (78) $2,350 Less: Retiree benefits End of 2024 1-a. Determine Mahomes's pension expense for 2024. $140 million $ 880 million 10 years 7% $ 2,000 160 106 (78) $2,196 1-b, 2. to 4. Prepare the appropriate journal entries to record the pension expense, to record any 2024 gains and losses, to record the cash contribution to plan assets and to record retiree benefits. Complete this question by entering your answers in the tabs below. Req 18 and 2 Req 1A to 4 Determine Mahomes'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 Pension expense $
Actuary and trustee reports indicate the following changes in the PBO and plan assets of Mahomes Industries during 2024: Prior service cost at January 1, 2024, from plan amendment at the beginning of 2021 (amortization: $20 million per year) Net loss-AOCI at January 1, 2024 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate ($ in millions) PBO Beginning of 2024 Service cost Interest cost, 7% Loss (gain) on PBO Less: Retiree benefits End of 2024 Required: Plan Assets Beginning of 2024 Return on plan assets, 8% (10% expected) $ 2,200 96 154 (30) Cash contributions (78) $2,350 Less: Retiree benefits End of 2024 1-a. Determine Mahomes's pension expense for 2024. $140 million $ 880 million 10 years 7% $ 2,000 160 106 (78) $2,196 1-b, 2. to 4. Prepare the appropriate journal entries to record the pension expense, to record any 2024 gains and losses, to record the cash contribution to plan assets and to record retiree benefits. Complete this question by entering your answers in the tabs below. Req 18 and 2 Req 1A to 4 Determine Mahomes'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 Pension expense $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Actuary and trustee reports indicate the following changes in the PBO and plan assets of Mahomes Industries during 2024:
Prior service cost at January 1, 2024, from plan amendment at the beginning of 2021
(amortization: $20 million per year)
Net loss-AOCI at January 1, 2024 (previous losses exceeded previous gains)
Average remaining service life of the active employee group
Actuary's discount rate
($ in millions)
РВО
Beginning of 2024
Service cost
Interest cost, 7%
Loss (gain) on PBO
Less: Retiree benefits
End of 2024
Required:
Plan Assets
Beginning of 2024
$ 2,200
96
Return on plan assets, 8% (10%
expected)
154
(38)
Cash contributions
(78)
Less: Retiree benefits
$ 2,350
End of 2024
1-a. Determine Mahomes's pension expense for 2024.
$ 140 million
$ 880 million
10 years
7%
$ 2,000
160
106
(78)
$ 2,196
1-b, 2. to 4. Prepare the appropriate journal entries to record the pension expense, to record any 2024 gains and losses, to record the
cash contribution to plan assets and to record retiree benefits.
Complete this question by entering your answers in the tabs below.
Req 1A
Req 18 and 2
to 4
Determine Mahomes'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
Pension expense
$
0
<Req 1A
Req 1B and 2 to 4 >
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