6 Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2021: Part 5 of 7 Prior service cost at Jan. 1, 2021, from plan amendment at the beginning of 2019 (amortization: $6 million per year) Net loss-pensions at Jan. 1, 2021 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate $40 million $58 million 10 years 104 1.87 points ($ in millions) Plan Assets $200 eBook Beginning of 2021 Service cost Interest cost, 10% Loss (gain) on PBO Less: Retiree benefits End of 2021 PBO $380 Beginning of 2021 56 Return on plan assets, 38 9.9% (10% expected) (2) Cash contributions (42) Less: Retiree benefits $ End of 2021 18 64 (42) $240 References $430 Assume the following actuary and trustee reports indicating changes in the PBO and plan assets of Lakeside Cable during 2022: ($ in millions) PBO Plan Assets Beginning of 2022 $430 Beginning of 2022 $240 Service cost 46 Return on plan assets, Interest cost, 10% 43 15% (184 expected) 36 Loss (gain) on PBO Cash contributions 38 Less: Retiree benefits (24) Less: Retiree benefits (24) End of 2022 $499 End of 2022 $290 5. Determine the new gains and/or losses in 2022, and prepare the appropriate journal entry(s) to record them. (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).) View transaction list Journal entry worksheet Record the losses. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 6 Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2021: Part 5 of 7 Prior service cost at Jan. 1, 2021, from plan amendment at the beginning of 2019 (amortization: $6 million per year) Net loss-pensions at Jan. 1, 2021 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate $40 million $58 million 10 years 104 1.87 points ($ in millions) Plan Assets $200 eBook Beginning of 2021 Service cost Interest cost, 10% Loss (gain) on PBO Less: Retiree benefits End of 2021 PBO $380 Beginning of 2021 56 Return on plan assets, 38 9.9% (10% expected) (2) Cash contributions (42) Less: Retiree benefits $ End of 2021 18 64 (42) $240 References $430 Assume the following actuary and trustee reports indicating changes in the PBO and plan assets of Lakeside Cable during 2022: ($ in millions) PBO Plan Assets Beginning of 2022 $430 Beginning of 2022 $240 Service cost 46 Return on plan assets, Interest cost, 10% 43 15% (184 expected) 36 Loss (gain) on PBO Cash contributions 38 Less: Retiree benefits (24) Less: Retiree benefits (24) End of 2022 $499 End of 2022 $290 5. Determine the new gains and/or losses in 2022, and prepare the appropriate journal entry(s) to record them. (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).) View transaction list Journal entry worksheet Record the losses. Note: Enter debits before credits. Transaction General Journal Debit Credit 1
