AC 313

Exercise 17-16 Determine and record pension expense and gains and losses; funding and retiree benefits [LO17-6, 17-7) Actuary and trustee reports indicate the following changes in the PBO and plan assets of Douglas-Roberts Industries during 2018: Prior service cost at Jan. 1. 2018, from plan amendment at the beginning of 2015 (amortization $3 million per year) Net loss-AOCI at Jan.1, 2018 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate $ 15 million $108 million 10 years Plan ($ in millions) PRO Beginning of 2018 Service cost $ 560 Interest cost, 41 Loss (gain) on PBO Less Retiree benefits End of 2018 $ 760 Beginning of 2018 66 Return on plan assets, 58 (78 expected) 30.4 (17) Cash contributions (38) Less Retiree benefits $801.4 End of 2018 Required: 1-a. Determine Douglas-Roberts' pension expense for 2018. 1.b, 2. to 4. Prepare the appropriate journal entries to record the pension expense, to record any 2018 gains and losses, to record the Required: 1-a. Determine Douglas-Roberts' pension expense for 2018 1.b, 2. to 4. Prepare the appropriate journal entries to record the pension expense, to record any 2018 gains and losses, to record the cash contribution to plan assets and to record retiree benefits. Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B and 2 Determine Douglas-Roberts' pension expense for 2018. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions rounded to 1 decimal place (1.e., 5,500,000 should be entered as 5.5).) Pension Expense Service cost $ 66.0 Interest cost Expected return on assets Amortization of prior service cost Amortization of net loss Pension expense Req 18 and 2 to 4 > Reg 1A Reg 18 and 21 to 4 Prepare the appropriate journal entries to record the pension expense, to record any 2018 gains and losses, to record the cash contribution to plan assets and to record 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 rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) Show less View transaction list Journal entry worksheet