Question

Actuary and trustee reports indicate the following changes in the PBO and plan assets of Douglas-Roberts...

Actuary and trustee reports indicate the following changes in the PBO and plan assets of Douglas-Roberts Industries during 2021:

Prior service cost at Jan. 1, 2021, from plan amendment at the
beginning of 2018 (amortization: $4 million per year)
$ 28 million
Net loss—AOCI at Jan.1, 2021 (previous losses exceeded previous gains) $ 230 million
Average remaining service life of the active employee group 10 years
Actuary's discount rate 7 %
($ in millions) Plan
PBO Assets
Beginning of 2021 $ 900 Beginning of 2021 $ 700
Service cost 68 Return on plan assets,
8% (10% expected) 56
Interest cost, 7% 63
Loss (gain) on PBO (18 ) Cash contributions 105
Less: Retiree benefits (39 ) Less: Retiree benefits (39 )
End of 2021 $ 974 End of 2021 $ 822

  
Required:
1-a. Determine Douglas-Roberts's pension expense for 2021.
1-b, 2. to 4. Prepare the appropriate journal entries to record the pension expense, to record any 2021 gains and losses, to record the cash contribution to plan assets and to record retiree benefits.

Determine Douglas-Roberts's pension expense for 2021. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

Pension Expense
Pension expense

Prepare the appropriate journal entries to record the pension expense, to record any 2021 gains and losses, to record the cash contribution to plan assets and to record retiree benefits. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

Journal entry worksheet

  • Record annual pension expense.

Note: Enter debits before credits.

Event General Journal Debit Credit
1
2 0
Add a comment Improve this question Transcribed image text
Answer #1

Answer Page.no @ Douglas - Roberts pension expense for 202/ Service cont $68 million Interest cost - $63 million Expected relPage: No @ Sind Credit (million 70 $14 4 131 OCI 2021 Debit Particular (million) 16, Pension expense $ 79 Plan assets Amortiz

Add a comment
Know the answer?
Add Answer to:
Actuary and trustee reports indicate the following changes in the PBO and plan assets of Douglas-Roberts...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Actuary and trustee reports indicate the following changes in the PBO and plan assets of Douglas-Roberts Industri...

    Actuary and trustee reports indicate the following changes in the PBO and plan assets of Douglas-Roberts Industries during 2018: Prior service costat Jan. 1. 2018, from plan amendment at the beginning of 2015 (amortization$8 million per year) Net loss-AOCI at Jan.1, 2018 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate $ 40 million $118 million 10 years 5 ($ in millions) Pво Beginning of 2018 Service cost Plan Assets $ 660...

  • Check my 16 Actuary and trustee reports indicate the following changes in the PBO and plan...

    Check my 16 Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during Prior service cost at Jan. 1, 2018, from plan amendment Part 5 of 7 at the beginning of 2016 (amortization: $6 million per year) Net loss-pensions at Jan.1, 2018 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate $40 million $58 million 10 years 108 1.5 points ($ in millions) eBook...

  • W Company’s actuary and trustee reports indicate the following changes in the PBO and plan assets...

    W Company’s actuary and trustee reports indicate the following changes in the PBO and plan assets during 2018:                Prior service cost at Jan. 1, 2018, from plan amendment at the beginning of 2015 (amortization: $4 million per year) $68 million Net gain-AOCI at Jan.1, 2018 $40 million   Average remaining service life of the active employee group 15 years Actuary's discount rate 5% Gain from changes in actuarial assumptions $5 million Pension Expense for 2018 $33.5 million ($ in millions)...

  • Required information [The following information applies to the questions displayed below.] Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable durin...

    Required information [The following information applies to the questions displayed below.] Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2018: Prior service cost at Jan. 1, 2018, from plan amendment at the beginning of 2016 (amortization: $6 million per year) $ 46 million Net loss–pensions at Jan.1, 2018 (previous losses exceeded previous gains) $ 64 million Average remaining service life of the active employee group 10 years Actuary’s discount rate...

  • Check my work Actuary and trustee reports indicate the following changes in the PBO and plan...

    Check my work Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2018 Prior service cost at Jan. 1, 2018, from plan amendment at the beginning of 2016 (amortization: $6 million per year) Net loss-pensions at Jan.1, 2018 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate $40 mi11ion $58 million 10 years 101 ($ in millions) Pla PBO Ass $380 Beginning of...

  • Complete this question by entering your answers in the tabs below. Req 13 and 2 Reg...

    Complete this question by entering your answers in the tabs below. Req 13 and 2 Reg 1A to 4 Determine Douglas-Roberts's pension expense for 2021. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Pension Expense Pension expense Req1A Req 1B and 2 to 4 > Actuary and trustee reports indicate the following changes in the PBO and plan assets of Douglas-Roberts Industries during 2021: $...

  • Reg 1A Reg 1B and 2 to 4 Prepare the appropriate journal entries to record the...

    Reg 1A Reg 1B and 2 to 4 Prepare the appropriate journal entries to record the pension expense, to record any 2021 gains and losses, to record the cash contribution to plan assets and to record retiree benefits. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) No Event General Journal Debit Credit 1 1 Pension expense Plan assets...

  • Actuary and trustee reports indicate the following changes in the PBO and plan assets of White...

    Actuary and trustee reports indicate the following changes in the PBO and plan assets of White Inc. during 2016: Prior service cost at January 1, 2016 from plan amendment at the beginning of 2013 [Amortization: $4,000 per year] $68,000 Net Gain - AOCI at January 1, 2016 $40,000 Average remaining service life of the active employee group 15 years Actuary's discount rate 5% Gain - from changes in actuarial assumptions $5,000 2016 Pension Expense $33,500 PBO Plan Assets Beginning of...

  • 14 Check my work The following information applies to the questions displayed below Actuary and trustee...

    14 Check my work The following information applies to the questions displayed below Actuary and trustee reports indicate the following changes in the P8O and plan assets of Lakeside Cable during 2018: art 3 of 7 Prior service cost at Jan. 1, 2018, from plan anendment at the beginning of 2016 (amortization: $6 million per year) Net loss-pensions at Jan.1, 2018 (previous losses exceeded previous gains) Average remaining service life of the active employ Actuary's discount rate $40 million $58...

  • A partially completed pension spreadsheet showing the relationships among the elements that constitute Carney, Inc.'s defined...

    A partially completed pension spreadsheet showing the relationships among the elements that constitute Carney, Inc.'s defined benefit pension plan follows. Six years earlier, Carney revised its pension formula and recalculated benefits earned by employees in prior years using the more generous formula. The prior service cost created by the recalculation is being amortized at the rate of $8 million per year. At the end of 2021, the pension formula was amended again, creating an additional prior service cost of $65...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT