Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2024 (the end of Beale's fiscal year), thefollowing pension-related data were available:Projected Benefit ObligationBalance, January 1, 2024Service costInterest cost, discount rate, 5%Gain due to changes in actuarial assumptions in 2024Pension benefits paidBalance, December 31, 2024($ in millions)$ 4808224(10)(40)$ 536Plan Assets($ in millions)Balance, January 1, 2024$ 500Actual return on plan assets40(Expected return on plan assets, $45)Cash contributions70Pension benefits paid(40)Balance, December 31, 2024$ 570January 1, 2024, balances:($ in millions)$ 204880Pension assetPrior service cost-AOCI (amortization $8 per year)Net gain-AOCI (any amortization over 15 years)Required:1. to 3. Prepare the journal entries required for the pension during 2024.4. Determine the balances at December 31, 2024, in the net gain-AOCI, and prior service cost-AOCI. [Hint: You might find T-accountsuseful.]5. What amount will Beale report in its 2024 balance sheet as a net pension asset or net pension liability for the funded status of theplan?

Pension expenses are established for employee benefits, The main objective of these plans is the…

Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2024 (the end of Beale's fiscal year), the following pension-related data were available: Projected Benefit Obligation Balance, January 1, 2024 Service cost Interest cost, discount rate, 5% Gain due to changes in actuarial assumptions in 2024 Pension benefits paid Balance, December 31, 2024 Plan Assets Balance, January 1, 2024 Actual return on plan assets (Expected return on plan assets, $45) Cash contributions Pension benefits paid Balance, December 31, 2024 ($ in millions) $ 480 82 24 (10) (40) $ 536 ($ in millions) $ 500 40 70 (40) $ 570 January 1, 2024, balances: Pension asset Prior service cost-AOCI (amortization $8 per year) Net gain-AOCI (any amortization over 15 years) Required: 1. to 3. Prepare the journal entries required for the pension during 2024. ($ in millions) $ 20 48 80 4. Determine the balances at December 31, 2024, in the net gain-AOCI, and prior service cost-AOCI. [Hint: You might find T-accou useful.] 5. What amount will Beale report in its 2024 balance sheet as a net pension asset or net pension liability for the funded status of the plan?

Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2024 (the end of Beale's fiscal year), the following pension-related data were available: Projected Benefit Obligation Balance, January 1, 2024 Service cost Interest cost, discount rate, 5% Gain due to changes in actuarial assumptions in 2024 Pension benefits paid Balance, December 31, 2024 Plan Assets Balance, January 1, 2024 Actual return on plan assets (Expected return on plan assets, $45) Cash contributions Pension benefits paid Balance, December 31, 2024 ($ in millions) $ 480 82 24 (10) (40) $ 536 ($ in millions) $ 500 40 70 (40) $ 570 January 1, 2024, balances: Pension asset Prior service cost-AOCI (amortization $8 per year) Net gain-AOCI (any amortization over 15 years) Required: 1. to 3. Prepare the journal entries required for the pension during 2024. ($ in millions) $ 20 48 80 4. Determine the balances at December 31, 2024, in the net gain-AOCI, and prior service cost-AOCI. [Hint: You might find T-accou useful.] 5. What amount will Beale report in its 2024 balance sheet as a net pension asset or net pension liability for the funded status of the plan?

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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