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CI 7 Lacy Construction has a noncontributory, defined benefit pension plan. At December 31, 2021, Lacy received the following information: 2 points Projected Benefit Obligation
CI 7 Lacy Construction has a noncontributory, defined benefit pension plan. At December 31, 2021, Lacy received the following information: 2 points Projected Benefit Obligation Balance, January 1 Service cost Prior service cost Interest cost(5.0%) Benefits paid Balance, December 31 ($ in millions) $1,200 94 46 60 (88) $1,312 8 03:44:14 Skipped eBook Plan Assets Balance, January 1 Actual return on plan assets Contributions 2021 Benefits paid Balance, December 31 ($ in millions) $ 570 58 94 (88) $ 634 Hint Print The expected long-term rate of return on plan assets was 10%. There were no AOCI balances related to pensions on January 1, 2021. At the end of 2021, Lacy amended the pension formula creating a prior service cost of $46 million. Required: 1. Determine Lacy's pension expense for 2021. 2. Prepare the journal entry(s) to record Lacy's (a) pension expense, (b) gains or losses, (c) prior service cost, (d) funding, and (e) payment of retiree benefits for 2021. The expected long-term rate of return on plan assets was 10%. There were no AOCI balances related to pensions on January 1, 2021. At the end of 2021, Lacy amended the pension formula creating a prior service cost of $46 million. 2 points Required: 1. Determine Lacy's pension expense for 2021. 2. Prepare the journal entry(s) to record Lacy's (a) pension expense, (b) gains or losses, (c) prior service cost, (d) funding, and (e) payment of retiree benefits for 2021. 03:43:42 Skipped Complete this question by entering your answers in the tabs below. eBook Required 1 Required 2 Hint Print Determine Lacy's pension expense for 2021. Pension expense million account field. Enter your answers in millions. (i.e., 10,000,000 should be entered as 10).) View transaction list 2 points 03:43:24 Journal entry worksheet Skipped Record the funding. eBook Hint Print Note: Enter debits before credits. Transaction General Journal Debit Credit D Prepare the journal entry(s) to record Lacy's (a) pension expense, (b) gains or losses, (c) prior service cost, (d) funding, and (e) payment of retiree benefits for 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the firs account field. Enter your answers in millions. (i.e., 10,000,000 should be entered as 10).) View transaction list 2 points 8 03:42:12 Journal entry worksheet Skipped Record the payment of retiree benefits. eBook Hint Print Note: Enter debits before credits. Transaction General Journal Debit Credit E
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