Required: Prepare a pension spreadsheet to show the relationship among the PBO, plan assets, prior service cost, the net gain, pension expense and the net pension asset. (Enter credit amounts with a minus sign and debit amounts with a positive sign. Enter your answers in millions.) ($ in millions) Balance, Jan. 1, 2021 Service cost Interest cost, 5% Expected return on assets Adjust for: Loss on assets Amortization of: Prior service cost Net gain Gain on PBO Cash funding Retiree benefits Balance, Dec. 31, 2021 PBO Plan Assets Prior Service Net Cost-AOCI Gain-AOCI Pension Expense Cash Net Pension (Liability) / Asset
Required: Prepare a pension spreadsheet to show the relationship among the PBO, plan assets, prior service cost, the net gain, pension expense and the net pension asset. (Enter credit amounts with a minus sign and debit amounts with a positive sign. Enter your answers in millions.) ($ in millions) Balance, Jan. 1, 2021 Service cost Interest cost, 5% Expected return on assets Adjust for: Loss on assets Amortization of: Prior service cost Net gain Gain on PBO Cash funding Retiree benefits Balance, Dec. 31, 2021 PBO Plan Assets Prior Service Net Cost-AOCI Gain-AOCI Pension Expense Cash Net Pension (Liability) / Asset
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
Section: Chapter Questions
Problem 4E
Related questions
Question
![Required:
Prepare a pension spreadsheet to show the relationship among the PBO, plan assets, prior service cost, the net gain, pension expense,
and the net pension asset. (Enter credit amounts with a minus sign and debit amounts with a positive sign. Enter your answers in
millions.)
($ in millions)
Balance, Jan. 1, 2021
Service cost
Interest cost, 5%
Expected return on assets
Adjust for:
Loss on assets
Amortization of:
Prior service cost
Net gain
Gain on PBO
Cash funding
Retiree benefits
Balance, Dec. 31, 2021
РВО
Plan
Assets
Prior
Service
Net
Cost-AOCI Gain-AOCI
Pension
Expense
Cash
Net Pension
(Liability) /
Asset](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb9eb052b-0c42-425f-80d7-ea5c1f6fa7cb%2Fe223fedb-bd66-4d9b-9288-270eecb7e426%2Fj2bc3a_processed.png&w=3840&q=75)
Transcribed Image Text:Required:
Prepare a pension spreadsheet to show the relationship among the PBO, plan assets, prior service cost, the net gain, pension expense,
and the net pension asset. (Enter credit amounts with a minus sign and debit amounts with a positive sign. Enter your answers in
millions.)
($ in millions)
Balance, Jan. 1, 2021
Service cost
Interest cost, 5%
Expected return on assets
Adjust for:
Loss on assets
Amortization of:
Prior service cost
Net gain
Gain on PBO
Cash funding
Retiree benefits
Balance, Dec. 31, 2021
РВО
Plan
Assets
Prior
Service
Net
Cost-AOCI Gain-AOCI
Pension
Expense
Cash
Net Pension
(Liability) /
Asset
![Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2021 (the end of Beale's fiscal year), the
following pension-related data were available:
Projected Benefit Obligation
Balance, January 1, 2021
Service cost
Interest cost, discount rate, 5%
Gain due to changes in actuarial assumptions in 2021
Pension benefits paid.
Balance, December 31, 2021
Plan Assets
Balance, January 1, 2021
Actual return on plan assets
(Expected return on plan assets, $48)
Cash contributions
Pension benefits paid
Balance, December 31, 2021
January 1, 2021, balances:
Pension asset
Prior service cost-AOCI (amortization $5 per year)
Net gain-AOCI (any amortization over 10 years)
($ in millions)
$ 710
43
84
(33)
$804
($ in millions)
$ 660
68
33
(17)
(33)
$711
($ in millions)
$ 50
25
121](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb9eb052b-0c42-425f-80d7-ea5c1f6fa7cb%2Fe223fedb-bd66-4d9b-9288-270eecb7e426%2Fkbk7re13_processed.png&w=3840&q=75)
Transcribed Image Text:Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2021 (the end of Beale's fiscal year), the
following pension-related data were available:
Projected Benefit Obligation
Balance, January 1, 2021
Service cost
Interest cost, discount rate, 5%
Gain due to changes in actuarial assumptions in 2021
Pension benefits paid.
Balance, December 31, 2021
Plan Assets
Balance, January 1, 2021
Actual return on plan assets
(Expected return on plan assets, $48)
Cash contributions
Pension benefits paid
Balance, December 31, 2021
January 1, 2021, balances:
Pension asset
Prior service cost-AOCI (amortization $5 per year)
Net gain-AOCI (any amortization over 10 years)
($ in millions)
$ 710
43
84
(33)
$804
($ in millions)
$ 660
68
33
(17)
(33)
$711
($ in millions)
$ 50
25
121
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