Based upon this information, how would I make the following journal entries?Record annual pension expense.Record the change in plan assets.Record the change in the PBO.Record the cash contribution to plan assets.Record the retiree benefits paid. 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)PlanPBOAssets$ 900Beginning of 2021Return on plan assets,8% (10% expected)Beginning of 2021$ 700Service cost5256Interest cost, 7%63Loss (gain) on PBOLess: Retiree benefits(10)(31)$ 974Cash contributions97(31)$ 822Less: Retiree benefitsEnd of 2021End of 2021

Record of above journal entry with all necessary workings are as follows.

Based upon this information, how would I make the following journal entries? Record annual pension expense. Record the change in plan assets. Record the change in the PBO. Record the cash contribution to plan assets. Record the retiree benefits paid

Based upon this information, how would I make the following journal entries? Record annual pension expense. Record the change in plan assets. Record the change in the PBO. Record the cash contribution to plan assets. Record the retiree benefits paid

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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Question

Based upon this information, how would I make the following journal entries?

Record annual pension expense.
Record the change in plan assets.
Record the change in the PBO.
Record the cash contribution to plan assets.
Record the retiree benefits paid.

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

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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