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Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2018 (the end of Beale's fiscal year), the following pension-related data were available:
Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2018 (the end of Beale's fiscal year), the following pension-related data were available: ($ in millions) $ 520 54 Projected Benefit Obligation Balance, January 1, 2018 Service cost Interest cost, discount rate, 5% Gain due to changes in actuarial assumptions in 2018 Pension benefits paid Balance, December 31, 2018 26 (10) (26) $ 564 ($ in millions) $ 540 36 Plan Assets Balance, January 1, 2018 Actual return on plan assets (Expected return on plan assets, $41) Cash contributions Pension benefits paid Balance, December 31, 2018 77 (26) $ 627 January 1, 2018, balances: Pension asset Prior service cost-AOCI (amortization $4 per year) Net gain-AOCI (any amortization over 10 years) ($ in millions) $20 20 94 Required: 1. to 3. Prepare the 2018 journal entry to record pension expense, to record any 2018 gains and losses and the contribution to plan assets and benefit payments to retirees. 4. Determine the balances at December 31, 2018, 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 2018 balance sheet as a net pension asset or net pension liability for the funded status of the plan
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