Question

3 12.5 points eBook 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 ($ in millions) $ 640 66 32 (16) (32) $ 690 (Expected return on plan assets, $47) Plan Assets Hint Balance, January 1, 2021 Actual return on plan assets Cash contributions Print Pension benefits paid Balance, December 31, 2021 References ($ in millions) $ 660 42 83 (32) $ 753 January 1, 2021, balances: Pension asset Prior service cost-AOCI (amortization $4 per year) Net gain-AOCI (any amortization over 10 years) Required: ($ in millions) $ 20 20 106 1. to 3. Prepare the 2021 journal entries to record pension expense, to record any 2021 gains and losses and the contribution to plan assets and benefit payments to retirees. 4. Determine the balances at December 31, 2021, in the PBO, plan assets, the net gain-AOCI, and prior service cost-AOCI [Hint: You might find T-accounts useful.] 5. What amount will Beale report in its 2021 balance sheet as a net pension asset or net pension liability for the funded status of the plan? Complete this question by entering your answers in the tabs below. Req 1 to 3 Req 4 Req 5

          3
12.5
points
eBook
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
($ in millions)
$ 640
66
32
(16)
(32)
$ 690
(Expected return on plan assets, $47)
Plan Assets
Hint
Balance, January 1, 2021
Actual return on plan assets
Cash contributions
Print
Pension benefits paid
Balance, December 31, 2021
References
($ in millions)
$ 660
42
83
(32)
$ 753
January 1, 2021, balances:
Pension asset
Prior service cost-AOCI (amortization $4 per year)
Net gain-AOCI (any amortization over 10 years)
Required:
($ in millions)
$ 20
20
106
1. to 3. Prepare the 2021 journal entries to record pension expense, to record any 2021 gains and losses and the contribution to plan
assets and benefit payments to retirees.
4. Determine the balances at December 31, 2021, in the PBO, plan assets, the net gain-AOCI, and prior service cost-AOCI [Hint: You
might find T-accounts useful.]
5. What amount will Beale report in its 2021 balance sheet as a net pension asset or net pension liability for the funded status of the
plan?
Complete this question by entering your answers in the tabs below.
Req 1 to 3
Req 4
Req 5

3
12.5
points
eBook
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
(in millions) 640
66
32
(16)
(32)
690
(Expected return on plan assets,47)
Plan Assets
Hint
Balance, January 1, 2021
Actual return on plan assets
Cash contributions
Print
Pension benefits paid
Balance, December 31, 2021
References
(in millions) 660
42
83
(32)
753
January 1, 2021, balances:
Pension asset
Prior service cost-AOCI (amortization4 per year)
Net gain-AOCI (any amortization over 10 years)
Required:
(in millions) 20
20
106
1. to 3. Prepare the 2021 journal entries to record pension expense, to record any 2021 gains and losses and the contribution to plan
assets and benefit payments to retirees.
4. Determine the balances at December 31, 2021, in the PBO, plan assets, the net gain-AOCI, and prior service cost-AOCI [Hint: You
might find T-accounts useful.]
5. What amount will Beale report in its 2021 balance sheet as a net pension asset or net pension liability for the funded status of the
plan?
Complete this question by entering your answers in the tabs below.
Req 1 to 3
Req 4
Req 5

Added by Justin M.

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