I need the journal entries plus the loss if you look at the picture I have every

Question

I need the journal entries plus the loss if you look at the picture I have everything but the loss.

Actuary and trustee reports indicate the following changes in the PBO and plan assets of Douglas-Roberts Industries during 2016 Prior service cost at Jan. 1, 2016, from plan amendment at the beginning of 2013 (amortization: $9 million per year) Net loss-AOCI at Jan.1, 2016 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate S 45 million $120 million 10 years 5% ($ in millions) PBO Assets $ 880 Beginning of 2016 $ 680 40.8 110 Beginning of 2016 Service cost 78 Return on plan assets, 6% (8% expected) 44.0 Interest cost, 5% Loss (gain) on PBO Less: Retiree benefits (23) Cash contributions (44) Less: Retiree benefits End of 2016 $935.0 End of 2016 $786.8 (For all requirements, enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) Required 1.1. Determine Douglas-Roberts' pension expense for 2016. (Amounts to be deducted should be indicated with a minus sign.) Pension Expense Service cost Interest cost Expected return on assets Amortization of prior service cost Amortization of net loss 78.0 44.0 (54.4) 9.0 Pension expense 76.6

Explanation / Answer

Date

Accounts Title & Explanation

Debit

Credit

Pension expense

$79.8

Plan assets

$54.4

     Net loss—AOCI (current amortization)

$3.2

     Prior service cost—AOCI (current amortization)

$9

     PBO ($78 + $44)

$122

(For recording pension expense, plan assets, net loss, service cost and PBO)

Let’s calculate pension expense;

Service cost

$78

Interest cost

$44

Expected return on assets ($680 * 0.08)

($54.4)

Amortization of prior service cost

$9

Amortization of net loss

$3.2

Pension expense

$79.8

Computation of net loss amortization;

Net loss –AOCI at Jan. 1, 2016

$120

10% of $880 PBO (greater than $680 plan assets)

($88)

Amount to be amortized

$32

Number of years

10

Amortization of net loss ($32 / 10)

$3.2

Date

Accounts Title & Explanation

Debit

Credit

Pension expense

$79.8

Plan assets

$54.4

     Net loss—AOCI (current amortization)

$3.2

     Prior service cost—AOCI (current amortization)

$9

     PBO ($78 + $44)

$122

(For recording pension expense, plan assets, net loss, service cost and PBO)

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