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

See similar textbooks

Similar questions

Assume that actual returns and expected returns to plan assets in a defined benefit pension plan are +$10 and +$12, respectively. What is the effect in the current period on pension expense? Select One: a.Pension expense is increased by $10 b.Pension expense is reduced by $10 c.Pension expense is reduced by $12 d.None of the listed answers
Current accounting standards require that the discount rate used for pension plans be: Multiple Choice estimated future average market rates. the rates at which the pension benefits could effectively be settled. current market rate for the year. the average market rate since the beginning of the plan.
Give me two paragraphs explaining a pension plan
Define the service cost component of the periodic pension expense.
Pina Co. has the following defined benefit pension plan balances on January 1, 2020. Projected benefit obligation $4,576,000 Fair value of plan assets 4,576,000 The interest (settlement) rate applicable to the plan is 10%. On January 1, 2021, the company amends its pension agreement so that prior service costs of $604,000 are created. Other data related to the pension plan are: 2020 2021 Service cost $149,000 $170,000 Prior service cost amortization 90,000 Contributions (funding) to the plan 198,000 184,000 Benefits paid 220,000 282,000 Actual return on plan assets 255,000 352,000 Expected rate of return on assets 6 % 8 %
Explain how to determine pension expense.
The net pension liability (PBO minus plan assets) is increased by: A. Service cost. B. Expected return on plan assets. C. Amortization of prior service cost. D. Cash contributions to plan assets.
What was the dollar amount of loss (gain) on plan assets that was recognized in OCI during 20X1? Prepare the journal entries to record pension expense, the contribution, and the OCI effects.
Annual additions to qualified retirement plans include interest and dividend income. forfeitures reallocated to plan participants. employee contributions. employer contributions. A) I, II, and III B) II, III, and IV C) I, II, III, and IV D) II and IV
Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2025. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit
Subject: acounting
Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2020. ( Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) The following information is available for the pension plan of Sandhill Company for the year 2020.