Douglas-Robert, Inc. has a noncontributory, defined benefit pension plan. At December 31, 2022, Douglas-Robert received the following information: Projected Benefit Obligation ($ in millions) Balance, January 1 $ 140 Service cost 40 Interest cost 14 Benefits paid (10 ) Balance, December 31 $ 184 Plan Assets Balance, January 1 $ 100 Actual return on plan assets 11 Contributions 2021 40 Benefits paid (10 ) Balance, December 31 $ 141 The expected long-term rate of return on plan assets was 10%. There was no prior service cost and a negligible net loss—AOCI on January 1, 2022. Required: 1. Determine Douglas-Robert’s pension expense for 2022. 2. Prepare the journal entries to record Doublas Robert’s (a) pension expense, (b) funding, and (c) payment of retiree benefits in 2022.
Douglas-Robert, Inc. has a noncontributory, defined benefit pension plan. At December 31, 2022, Douglas-Robert received the following information: Projected Benefit Obligation ($ in millions) Balance, January 1 $ 140 Service cost 40 Interest cost 14 Benefits paid (10 ) Balance, December 31 $ 184 Plan Assets Balance, January 1 $ 100 Actual return on plan assets 11 Contributions 2021 40 Benefits paid (10 ) Balance, December 31 $ 141 The expected long-term rate of return on plan assets was 10%. There was no prior service cost and a negligible net loss—AOCI on January 1, 2022. Required: 1. Determine Douglas-Robert’s pension expense for 2022. 2. Prepare the journal entries to record Doublas Robert’s (a) pension expense, (b) funding, and (c) payment of retiree benefits in 2022.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Douglas-Robert, Inc. has a noncontributory, defined benefit pension plan. At December 31, 2022, Douglas-Robert received the following information:
| Projected Benefit Obligation | ($ in millions) | ||||
| Balance, January 1 | $ | 140 | |||
| Service cost | 40 | ||||
| Interest cost | 14 | ||||
| Benefits paid | (10 | ) | |||
| Balance, December 31 | $ | 184 | |||
| Plan Assets | |||||
| Balance, January 1 | $ | 100 | |||
| Actual return on plan assets | 11 | ||||
| Contributions 2021 | 40 | ||||
| Benefits paid | (10 | ) | |||
| Balance, December 31 | $ | 141 | |||
The expected long-term
Required:
1. Determine Douglas-Robert’s pension expense for 2022.
2. Prepare the
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