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, 2024Plan Assets($ in millions)$ 7407637(21)(37)$ 795($ in millions)$ 76047(Expected return on plan assets, $52)88Pension benefits paid(37)Balance, December 31, 2024$ 858January 1, 2024, balances:($ in millions)Pension asset$ 20Balance, January 1, 2024Actual return on plan assetsCash contributionsPrior service cost-AOCI (amortization $7 per year)Net gain-AOCI (any amortization over 10 years)Required:1. to 3. Prepare the journal entries required for the pension during 2024.351164. 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?

jourrnal entries reflect the annual pension expense, actualreturns ,funding, and benefits paid.…

Answered: Beale Management has a noncontributory,…

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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Horizon Inc. has a defined benefit pension plan. The following pension-related data were available for the current calendar year: PBO: Balance, Jan. 1 $ 235,000 Service cost 36,000 Interest cost (5% discount rate) 11,750 Gain from changes in actuarial assumptions in 2021 (4,500 )Benefits paid to retirees (15,000 )Balance, Dec. 31 $ 263,250 Plan assets: Balance, Jan.1 $ 245,000 Actual return (expected return was $22,000) 20,000 Contributions 30,000 Benefits paid (15,000 )Balance, Dec. 31 $ 280,000 ABO, Dec. 31 $ 239,500 January 1, 2021, balances: Prior service cost–AOCI (amortization $5,075/yr.) 5,075 Net gain–AOCI (amortization, if any, over 15 years) 50,750 There were no other relevant data. Required:1. Calculate the 2021 pension expense.2. Prepare the 2021 journal entries to record pension expense and funding.3. Prepare any journal entries to record any 2021 gains or losses.
The following information is related to the defined benefit pension plan of Dreamworld Company for the year ended 12/31/2020: Service cost $ 60,000 110,000 150,000 640,000 750,000 150,000 900,000 960,000 Contributions to pension plan Benefits paid to retirees Plan assets (fair value), January 11 Plan assets (fair value), December 31 Actual return on plan assets PBO, January 1 PBO, December 31 Discount rate Long-term expected return on plan assets Prior Service Cost 1/1 $ 700,000 Average remaining years of service Assuming no other relevant data exist. Required: 10 years 10% 9% A. Calculate the company's pension expense for 2020. B. Make journal entry (entries) related to the plan at 12/31/2020.
Information regarding the defined-benefit pension plan of Lopez Products included the following for 2024 ($ in millions): December 31: Projected benefit obligation (PBO) Accumulated benefit obligation (ABO) Plan assets Pension expense $ 85 75 50 8 No contributions were made to the pension plan assets during 2024. At December 31, 2024, what amount should Lopez report as its net pension liability? Multiple Choice О $27 million $10 million
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Wildhorse Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2020 and 2021. 2020 2021 Plan assets (fair value), December 31 $817,830 $993,330 Projected benefit obligation, January 1 819,000 936,000 Pension asset/liability, January 1 163,800 Cr. ? Prior service cost, January 1 292,500 280,800 Service cost 70,200 105,300 Actual and expected return on plan assets 28,080 35,100 Amortization of prior service cost 11,700 14,040 Contributions (funding) 134,550 140,400 Accumulated benefit obligation, December 31 585,000 643,500 Interest/settlement rate 10 % 10 % Prepare the journal entries to record the pension expense and the company’s funding of the pension plan for both years.
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