Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2018:

IN MILLIONS

Required: 1-a. Determine Lakesides pension expense for 2018.

Pension Expense 2018=

1-b. Prepare the appropriate journal entries to record the expense as well as the cash contribution to plan assets and payment of benefits to retirees?

Transaction #1: Record the pension expense

Transaction #2: Record funding to plan assets

Transaction #3: Record the payment of benefit to retirees

Transaction	General Journal	Debit	Credit
1
2
3

Prior service cost at Jan. 1, 2018, from plan amendment at the beginning of 2016 (amortization: $5 million per year) Net loss-pensions at Jan.1, 2018 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate $38 million $55 million 10 years 8% Plan Assets $160 Beginning of 2018 Service cost Interest cost, 8% Loss (gain) on PBO Less: Retiree benefits End of 2018 $350 49 28 (2) (25) $400 Beginning of 2018 Return on plan assets, 7.5% (10% expected) Cash contributions Less: Retiree benefits End of 2018 (25) $200