Question

instrument has a non-contributory decline benefit pension plan. On December 31st 2018 the intervals fiscal year the following pension related data were available

balance January one 2018 700 million dollars
service cost 72 million
interest cost, discount rate, 5% 35 million
gain due to changes and actual assumption in 2018 -19 million
pension benefits paid -35 million
balance December 31 2018 753 million

plan assets

balance January one 2018 720 million
actual return I'm plan assets 45 million
expected return on plan assets 50 million
cash contributions 86 million
pension benefits paid -35 million
balance December Thirty-One 2018 816 million

January one 2018 balances
pension asset 20 million
prior service cost amortization 7 million per year 35 million
netgain OAC I any amortization over 10 years 112 million

required
1-3 prepare the 2018 journal entry to record pension expense to record any 2018 gains and losses and the contribution to plan assets and benefit payments to retirees

4. determine the balances at December 31st 2018 in the PBO, plan assets, and the net gain aoci, and prior service cost aoci.

5. what amount will Beale report and its 2018 balance sheet as a net pension asset or net pension liability for the funded status of the plan?

Answer 1

Answer

Amortization of net gain or loss-AOCI using Corridor approach Pension Work Sheet General Journal Entries Memo Record 2018 sign indicates Credits Positive Sign Indicates Debits OCI -Prion Projected Pension Service oci Benefit Items Cash Cost Gain JLoss Asset/Llabill ation Plan assets 720 Dr Balance, Jan. 1, 2018 Service cost 20 Dr (700) Cr 172) Cr 72 Dr 35 Dr (46 Cr (5 Cr Dr Interest cost I settlement rate PBOx 5%) Actual Return 35) Cr 46Dr Unexpected Loss Ngair Amortisation of Past service cost Cr. Amortization of net gain or losS AOCI 4 Dr Contributions Cr 86 Dr 36 Dr 35) Cr Decreaselincrease in PBO-(actuarial (19) Cr 10) Cr. 19 Dr for 2018 60 Dr Cr Cr. 43 Dr Accumulated OCI, 1 Jan 18 36 Dr 112) Cr (753) Cr Balance Dec. 2018 28 Dr (122) Cr 63 Dr 816 Dr Comdo Projected Benefit Year Obligation | Plan assets | Corridor@10%| Cumulative Years amortization Unrecognized Gain or loss of galn or Loss 2018 700 720 72 4.00 Gain 10

60 Pension Expense Answer 1-3 1, Journal entry (or entries) to record all pension effects for 2018 Debit Account title & explanation credit 60 Pension expense 43 Pension Asset/Liabili 10.00 Other comprehensive income(G/L) 86.00 Cash 7.00 Other comprehensive income(PSC) Record the journal entry for pension expense for 2018 60.00 Pension Expense 50.00 Plann Assets Amortisation of net gain-OCI 4.00 7.00 Amortisation of Prior service cost-OCI РВО 107.00 Record the journal entry for gain or losses in plan assets for 2018 Loss-OCI 5.00 Plan Assets 5.00 Record the journal entry for gain or losses in PBO for 2018 19.00 РВО 19.00 ain-OCI Record the journal entry for cash contribution to plan assets for 2018 86.00 Plan Assets 86.00 Cash Record the journal entry for benefits paid to employees for 2018 РВО 35.00 35.00 Plan Assets Answer 4 2,018 balances at December 31st 2018 Ending Balances Plan Assets 816 753 122 PBO net gain aoci rior service cost aoci 28 Answer 816 Plan Assets 753 РВО 63 Net Plan Assets