Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2021 (the end of Beale's fiscal year), the following pension-related data were available: Projected Benefit Obligation Balance, January 1, 2021 Service cost Interest cost, discount rate, 5% Gain due to changes in actuarial assumptions in 2021 Pension benefits paid Balance, December 31, 2021 ($ in millions) $ 480 82 24 (10) ( 40 ) $ 536 ($ in millions) $ 500 40 Plan Assets Balance, January 1, 2021 Actual return on plan assets (Expected return on plan assets, $45) Cash contributions Pension benefits paid Balance, December 31, 2021 70 ( 40 ) $ 570 January 1, 2021, balances : Pension asset Prior service cost-AOCI (amortization $8 per year) Net gain-AOCI (any amortization over 15 years) ($ in millions) $ 20 48 80 Required: 1. to 3. Prepare the 2021 journal entries to record pension expense, to record any 2021 gains and losses and the contribution to plan assets and benefit payments to retirees. 4. Determine the balances at December 31, 2021, in the PBO, plan assets, the net gain-AOCI, and prior service cost-AOCI (Hint: You might find T-accounts useful.] 5. What amount will Beale report in its 2021 balance sheet as a net pension asset or net pension liability for the funded status of the plan? Req 1 to 3 Req 4 Req 5 Prepare the 2021 journal entries to record pension expense, to record any 2021 gains and losses and the contribution to plan assets and benefit payments to retirees. (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).) No Event Credit 1 General Journal Pension expense Plan assets Amortization of net gain - OCI Amortization of prior service cost - OCI PBO Debit 0 45 o 0 x 10 PBO Gain - OCI 5 Loss - OCI Plan assets 70 Plan assets Cash 70 40 PBO Plan assets 00 40 Req 1 to 3 Reg 4 Reg 5 Determine the balances at December 31, 2021, in the PBO, plan assets, the net gain-AOCI, and prior service cost-AOCI [Hint: You might find T-accounts useful.] (Enter your answers in millions. (i.e., 10,000,000 should be entered as 10).) 606 > Balances on Dec. 31, 2021 ($ in millions) PBO $ Plan assets Net gain-AOCI Prior service cost-AOCI Req 1 to 3 Req5 > Req 1 to 3 Req 4 Req 5 What amount will Beale report in its 2021 balance sheet as a net pension asset or net pension liability for the funded status of the plan? (Enter your answers in millions. (i.e., 10,000,000 should be entered as 10).). Balance Sheet as of 2021 Net pension asset $ 34 million
