Question
Bright Management has a non-contributory, defined benefit pension plan. On December 31, 2018 (the end of the company's fiscal year), the following pension-related data were
Bright Management has a non-contributory, defined benefit pension plan. On December 31, 2018 (the end of the company's fiscal year), the following pension-related data were available.
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Projected Balance Obligation
Balance January 1, 2018.?
Service Cost.76
Interest Cost (discount rate 6%).45
Loss (gain) due to changes in actuarial assumptions in 2018.(8)
Pension Benefits pad.(40)
Balance, December 31, 2018?
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Plan Assets
Balance, January 1, 2018.?
Actual return on plan assets, 5% (loss on plan asset $4).40
Cash Contribution.160
Benefits paid.(40)
Balance, December 31, 2018.?
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January 1, 2018, Balances:
Pension asset (Pension Liability).25
Prior service cost-AOCI (amortization $6 per year).42
Net gain - AOCI (any amortization over 10 years).110
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Required:
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Prepare the 2018 journal entry to record pension expense.
Prepare the journal entry ($) to record 2018 gains and losses.
Prepare the journal entries to record the contribution to the plan assets and benefit payment to retirees.
Determine the balance at December 31, 2018 in the PBO, plan asset, net gain- AOCI ad prior service cost, AOCI.
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