Please do not give solution in image format ? And Fast answering please and explain proper steps by Step. The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal years 2024 and 2025 arepresented below ($ in millions):Information Provided by Pension Plan Actuary:a. Projected benefit obligation as of December 31, 2023 = $3,950.b. Prior service cost from plan amendment on January 2, 2024 = $850 (straight-line amortization for 10-year average remaining serviceperiod).c. Service cost for 2024 = $690.d. Service cost for 2025 = $740.e. Discount rate used by actuary on projected benefit obligation for 2024 and 2025 = 10%.f. Payments to retirees in 2024 = $550.g. Payments to retirees in 2025 = $620.h. No changes in actuarial assumptions or estimates.i. Net gain-AOCI on January 1, 2024 = $465.j. Net gains and losses are amortized for 10 years in 2024 and 2025.Information Provided by Pension Fund Trustee:a. Plan asset balance at fair value on January 1, 2024 = $2,800.b. 2024 contributions = $710.c. 2025 contributions = $760.d. Expected long-term rate of return on plan assets = 12%.e. 2024 actual return on plan assets = $260.f. 2025 actual return on plan assets = $310.Required:1. Calculate pension expense for 2024 and 2025.2. Prepare the journal entries for 2024 and 2025 to record pension expense.3. Prepare the journal entries for 2024 and 2025 to record any gains and losses and new prior service cost.4. Prepare the journal entries for 2024 and 2025 to record (a) the cash contribution to plan assets and (b) the benefit payments toretirees.Complete this question by entering your answers in the tabs below.Required 1 Required 2Required 3Pension expenseRequired 4Calculate pension expense for 2024 and 2025.Note: Amounts to be deducted should be indicated with a minus sign. Do not round intermediate calculations. Enter youranswers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).($ in millions)2024$< Required 10.0 $20250.0Required 2 > Required 1Prepare the journal entries for 2024 and 2025 to record pension expense.Note: Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in thefirst account field. Enter your answers millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).View transaction listJournal entry worksheet<1Required 2 Required 3Record pension expense.Note: Enter debits before credits.Year2024<2Record entryShow Transcribed TextView transaction listJournal entryYear2024Required 1 Required 2Prepare the journal entries for 2024 and 2025 to record any gains and losses and new prior service cost.Note: Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in thefirst account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).2Record entryRecord gain or loss on plan assets.Note: Enter debits before credits.Required 1 Required 2View transaction list< 13General Journal2Clear entryShow Transcribed TextRecord entryrksheetRequired 3 Required 43Required 4Journal entry worksheetNote: Enter debits before credits.Year2025General JournalClear entryRequired 3 Required 44Record benefit payments to retirees.General JournalDebit3Prepare the journal entries for 2024 and 2025 to record (a) the cash contribution to plan assets and (b) the benefit paymentsNote: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your anmillions. (i.e., 10,000,000 should be entered as 10).Clear entryDebitĆCreditView general journalDebitCredit>general journalCreditView general journalShow less A>Show less ASh

Actuaries estimate future pension obligations based on various factors . Pension expense refers to…

The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal years 2024 and 2025 are presented below ($ in millions): Information Provided by Pension Plan Actuary: a. Projected benefit obligation as of December 31, 2023-$3,950. b. Prior service cost from plan amendment on January 2, 2024 - $850 (straight-line amortization for 10-year average remaining service period). c. Service cost for 2024 - $690. d. Service cost for 2025 - $740. e. Discount rate used by actuary on projected benefit obligation for 2024 and 2025 = 10%. f. Payments to retirees in 2024 - $550. g. Payments to retirees in 2025 - $620. h. No changes in actuarial assumptions or estimates. i. Net gain-AOCI on January 1, 2024 $465. j. Net gains and losses are amortized for 10 years in 2024 and 2025. Information Provided by Pension Fund Trustee: a. Plan asset balance at fair value on January 1, 2024 - $2,800. b. 2024 contributions - $710. c. 2025 contributions - $760. d. Expected long-term rate of return on plan assets = 12%. e. 2024 actual return on plan assets - $260. f. 2025 actual return on plan assets - $310. Required: 1. Calculate pension expense for 2024 and 2025. 2. Prepare the journal entries for 2024 and 2025 to record pension expense. 3. Prepare the journal entries for 2024 and 2025 to record any gains and losses and new prior service cost. 4. Prepare the journal entries for 2024 and 2025 to record (a) the cash contribution to plan assets and (b) the benefit payments to retirees.

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q