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Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2024 (the end of Beale's fiscal year), the following pension-related data were
Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2024 (the end of Beale's fiscal year), the following pension-related data were available: Projected Benefit Obligation Balance, January 1, 2024 Service cost Interest cost, discount rate, 5% Gain due to changes in actuarial assumptions in 2024 Pension benefits paid Balance, December 31, 2024 Plan Assets Balance, January 1, 2024 Actual return on plan assets (Expected return on plan assets, $39) Cash contributions ($ in millions) $ 500 34 ($ in millions) $ 480 50 24 (8) (24) $ 522 75 Pension benefits paid (24) Balance, December 31, 2024 $ 585 January 1, 2024, balances: ($ in millions) Pension asset Prior service cost-AOCI (amortization $6 per year) Net gain-AOCI (any amortization over 10 years) Required: $ 20 42 90 1. to 3. Prepare the journal entries required for the pension during 2024. 4. Determine the balances at December 31, 2024, in the net gain-AOCI, and prior service cost-AOCI. [Hint: You might find T-accounts useful.] 5. What amount will Beale report in its 2024 balance sheet as a net pension asset or net pension liability for the funded status of the plan? Complete this question by entering your answers in the tabs below. Req 1 to 3 Req 4 Req 5 Prepare the journal entries required for the pension during 2024. Note: 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 1 2 3 4 5 Record the pension expense. Note: Enter debits before credits. Event 1 General Journal Debit Credit Show less
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