NOTE 17: EMPLOYEE BENEFIT PLANS (in part) ($ in millions) Changes in projected benefit obligation: Obligation at beginning of period Service cost Interest cost Actuarial (gain) loss Benefits paid Obligation at end of period Change in plan assets: Fair value of plan assets at beginning of period Actual return (loss) on plan assets* Employer contribution Benefits paid Fair value of plan assets at end of period Net liability recognized at end of period Pension Benefits 2020 2019 $ 648 1 $ 637 1 31 34 54 37 (50) (50) $ 684 $ 659 $ 496 $ 431 70 52 24 74 (50) (50) 540 507 $ (144) $ (152) "Expected return $30 and $29 in 2020 and 2019, respectively Required: 1. What amount did Maur report in its balance sheet related to the pension plan at June 30, 2020? 2. When calculating pension expense at June 30, Maur included $10 million in its income statement as the amortization of unrecognized net actuarial loss (net loss-AOCI). This AOCI account had a balance of $350 million at the beginning of the year and was the only AOCI account related to pensions. What was the average remaining service life of employees as of 2020? 3. What was the pension expense? 4. What were the appropriate journal entries to record Maur's pension expense and to record gains and/or losses related to the pension plan? Complete this question by entering your answers in the tabs below. Req 1 to 3 Req 4 What were the appropriate journal entries to record Maur's pension expense and to record gains and/or losses related to the pension Next>
NOTE 17: EMPLOYEE BENEFIT PLANS (in part) ($ in millions) Changes in projected benefit obligation: Obligation at beginning of period Service cost Interest cost Actuarial (gain) loss Benefits paid Obligation at end of period Change in plan assets: Fair value of plan assets at beginning of period Actual return (loss) on plan assets* Employer contribution Benefits paid Fair value of plan assets at end of period Net liability recognized at end of period Pension Benefits 2020 2019 $ 648 1 $ 637 1 31 34 54 37 (50) (50) $ 684 $ 659 $ 496 $ 431 70 52 24 74 (50) (50) 540 507 $ (144) $ (152) "Expected return $30 and $29 in 2020 and 2019, respectively Required: 1. What amount did Maur report in its balance sheet related to the pension plan at June 30, 2020? 2. When calculating pension expense at June 30, Maur included $10 million in its income statement as the amortization of unrecognized net actuarial loss (net loss-AOCI). This AOCI account had a balance of $350 million at the beginning of the year and was the only AOCI account related to pensions. What was the average remaining service life of employees as of 2020? 3. What was the pension expense? 4. What were the appropriate journal entries to record Maur's pension expense and to record gains and/or losses related to the pension plan? Complete this question by entering your answers in the tabs below. Req 1 to 3 Req 4 What were the appropriate journal entries to record Maur's pension expense and to record gains and/or losses related to the pension Next>
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:NOTE 17: EMPLOYEE BENEFIT PLANS (in part)
($ in millions)
Changes in projected benefit obligation:
Obligation at beginning of period
Service cost
Interest cost
Pension Benefits
2020
2019
$ 648
1
$ 637
1
31
34
Actuarial (gain) loss
Benefits paid
Obligation at end of period
Change in plan assets:
54
37
(50)
(50)
$ 684
$ 659
Fair value of plan assets at beginning of period
Actual return (loss) on plan assets*
$ 496
$ 431
70
52
Employer contribution
24
74
Benefits paid
(50)
(50)
Fair value of plan assets at end of period
540
507
Net liability recognized at end of period
$ (144)
$ (152)
*Expected return $30 and $29 in 2020 and 2019, respectively
Required:
1. What amount did Maur report in its balance sheet related to the pension plan at June 30, 2020?
2. When calculating pension expense at June 30, Maur included $10 million in its income statement as the amortization of
unrecognized net actuarial loss (net loss-AOCI). This AOCI account had a balance of $350 million at the beginning of the year and
was the only AOCI account related to pensions. What was the average remaining service life of employees as of 2020?
3. What was the pension expense?
4. What were the appropriate journal entries to record Maur's pension expense and to record gains and/or losses related to the
pension plan?
Complete this question by entering your answers in the tabs below.
Req 1 to 3
Req 4
What were the appropriate journal entries to record Maur's pension expense and to record gains and/or losses related to the pension
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