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1: Record pension expense.
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2: Record any 2021 gain or loss for the difference in the actual return versus the expected return.
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3: Record any 2021 gain or loss for the change in the assumption regarding the PBO.
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4: Record new prior service cost in 2021.
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5: Record the cash contribution to plan assets.
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6: Record payment of retiree benefits.
A partially completed pension spreadsheet showing the relationships among the elements that constitute Carney, Inc's defined benefit pension plan follows. Six years earlier, Carney revised its pension formula and recalculated benefits earned by employees in prior years using the more generous formula. The prior service cost created by the recalculation is being amortized at the rate of $5 million per year. At the end of 2021, the pension formula was amended again, creating an additional prior service cost of $60 million. The expected rate of return on assets and the actuary's discount rate were 10%, and the average remaining service life of the active employee group is 10 years. Required: 1. Fill in the missing amounts. 2. Prepare the 2021 journal entry to record pension expense. 3. Prepare the journal entry(s) to record any 2021 gains and losses and new prior service cost in 2021. 4. Prepare the 2021 journal entries to record (a) the cash contribution to plan assets and (b) the payment of retiree benefits. Complete this question by entering your answers in the tabs below. Req 1 Req 2 to 4 Fill in the missing amounts. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Enter credit amounts with a minus sign and debit amounts with a positive sign.) ( )s indicate credits; debits otherwise Prior Net Net Plan Service Pension Pension ($ in millions) PBO Assets Loss- Cash Cost- AOCI Expense (Liability) AOCI I Asset Balance, Jan. 1, (860) 720 40 96 2021 (140) Service cost 76 Interest cost Expected return on assets Adjust for: Loss on assets (6) Amortization of: Prior service cost Net loss Loss on PBO Prior service cost Cash funding 81 Retiree benefits Bal., Dec. 31, 2021 750 (16) (Reg 1 Req 2 to 4 > earned by employees in prior years using the more generous formula. The prior service cost created by the recalculation is being amortized at the rate of $5 million per year. At the end of 2021, the pension formula was amended again, creating an additional prior service cost of $60 million. The expected rate of return on assets and the actuary's discount rate were 10%, and the average remaining service life of the active employee group is 10 years. Required: 1. Fill in the missing amounts. 2. Prepare the 2021 journal entry to record pension expense. 3. Prepare the journal entry(s) to record any 2021 gains and losses and new prior service cost in 2021. 4. Prepare the 2021 journal entries to record (a) the cash contribution to plan assets and (b) the payment of retiree benefits. Complete this question by entering your answers in the tabs below. Req 1 Req 2 to 4 2. Prepare the 2021 journal entry to record pension expense. 3. Prepare the journal entry(s) to record any 2021 gains and losses and new prior service cost in 2021. 4. Prepare the 2021 journal entries to record (a) the cash contribution to plan assets and (b) the payment of retiree benefits. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Show less View transaction list Journal entry worksheet 1 2 3 4 5 6 > Record pension expense. Note: Enter debits before credits. General Journa Debit Credit Event 02 Record entry View general journal Clear entry
