Burrito Corporation has a defined benefit pension plan. Burrito received the fol

Question

Burrito Corporation has a defined benefit pension plan. Burrito received the following information for the current calendar year:

Determine Burrito's pension expense for the year. (Enter your answers in millions. Amounts to be deducted should be indicated with a minus sign. Round your answers to 2 decimal places.)

      

Prepare the journal entries to record the pension expense and funding for the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to 2 decimal places. Enter your answers in millions.)

      

Burrito Corporation has a defined benefit pension plan. Burrito received the following information for the current calendar year:

Explanation / Answer

Note: For Writing figures in million please adjust amounts(divide by 1000000)Please comment for any further help.

Req 1 Service Cost     28,000,000 Interest Cost     12,480,000 Expected return on the plan assets     (7,440,000) ($9,440,000 Less $2,000,000 gain) Pension Expense $ 33,040,000 Req 2 Pension expense (calculated above) $ 33,040,000 Plan assets (expected return on plan assets) $   7,440,000 PBO ($28M service cost + $12.48M interest cost) $ 40,480,000 Plan assets $ 26,000,000 Cash (given) $ 26,000,000 PBO $ 15,000,000 Plan assets (given) $ 15,000,000 The following entry also would be required although it does not affect the pension expense or the plan asset funding: Plan Assets $   2,000,000 Gain - OCI $   2,000,000

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.