Pensio spreadsheet Prepare a pension spreadsheet to shou gain, pension expense,
ID: 2619638 • Letter: P
Question
Pensio spreadsheet Prepare a pension spreadsheet to shou gain, pension expense, and the net pension asset. LO17-8 Taoy Co ncotrbutory defined benefit pension plan. At December 31, 2018, Lacy recetive E 17-21 Determine pension expense; following information: ($ in millions) $360 60 12 27 Projected Benefit Obligation prior service cost ? LO17-6, L017-7 Balance, January 1 Service cost Prior service cost Interest cost (7.5%) Benefits paid Balance, December 31 (37) $422 Plan Assets Balance, January 1 Actual return on plan assets Contributions 2018 Benefits paid Balance, December 31 $240 27 60 (37) $290 The expected long-term rate of return on plan assets was 10%. There were no AOCI balances related to per- sions on January 1, 2018. At the end of 2018, Lacy amended the pension formula creating a prior service cost d $12 million. Required: 1. Determine Lacy's pension expense for 2018 2. Prepare the journal entry(s) to record Lacy's pension expense, gains or losses, prio payment of retiree benefits for 2018. r service cost, funding, andExplanation / Answer
2. Prepare the journal entry(s) to record Lacy’s pension expense, gains or losses, prior service cost, funding, and payment of retiree benefits for 2018.
Dr Pension expense $63
Dr Plan assets $24
Cr PBO $87
Dr Plan assets $3
Cr Gain—OCI $3
(Gain-OCI ($27 actual return on assets – $24 expected return) = $3
Dr Prior service cost—OCI $12
Cr PBO $12
Dr Plan assets $60
Cr Cash $60
Dr PBO $37
Cr Plan assets $37
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.