Based on the provided information, how would I be able to create the journal entries to record the change in plan assets and record the change in the PBO? I understand which accounts to use, but I am having a hard time understanding how much should be credited/debited from each of those accounts. Therefore, if you could show me how you calcuated the numbers to use in those two journal entries, that would be great! Thank you! 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 thebeginning of 2018 (amortization: $2 million per year)Net loss-AOCI at Jan.1, 2021 (previous losses exceeded previous gains)Average remaining service life of the active employee groupActuary's discount rate$ 14 million$150 million10 years7 %($ in millions)PlanРВОAssetsBeginning of 2021Service costBeginning of 2021Return on plan assets,8% (10% expected)$ 900$ 7005256Interest cost, 7%63Loss (gain) on PBOCash contributions(10)(31)97(31)$ 822Less: Retiree benefitsLess: Retiree benefitsEnd of 2021$974End of 2021

Introduction: Pension expense is the amount charged to expense by a company in relation to its…

Answered: Based on the provided information, how…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Based on the provided information, how would I be able to create the journal entries to record the change in plan assets and record the change in the PBO? I understand which accounts to use, but I am having a hard time understanding how much should be credited/debited from each of those accounts. Therefore, if you could show me how you calcuated the numbers to use in those two journal entries, that would be great! Thank you!

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)
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
$ 14 million
$150 million
10 years
7 %
($ in millions)
Plan
РВО
Assets
Beginning of 2021
Service cost
Beginning of 2021
Return on plan assets,
8% (10% expected)
$ 900
$ 700
52
56
Interest cost, 7%
63
Loss (gain) on PBO
Cash contributions
(10)
(31)
97
(31)
$ 822
Less: Retiree benefits
Less: Retiree benefits
End of 2021
$974
End of 2021

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