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DB Company operates a defined benefit pension plan. Until January 1, 2017, DB Company had a defined contribution plan that had been retroactively changed to
DB Company operates a defined benefit pension plan. Until January 1, 2017, DB Company had a defined contribution plan that had been retroactively changed to a defined benefit plan. The plan was on this date underfunded by $1,000,000. DB Company has a December 31 year-end. On January 1, 2019, valuations were completed with the following results: The company uses the following assumptions for its pension plan: - Discount rate on obligations and expected rate of investment return: 8% - All accruals and payments take place at mid-year. The following data are relevant for 2019: Requirement a. Using the above information, complete the following note disclosures reconciling the opening and closing balances of pension assets and liabilities for 2019. Begin by computing the pension assets schedule. (Use a minus sign or parentheses to enter a decrease and/or a loss.) Prepare the pension obligation schedule. (Use a minus sign or parentheses to enter a decrease.) pension expense.) Requirement c. Record the journal entries for LT's pension in 2019. (Record debits first, then credits. Explanations are not required. Leave any unused cells blank.) Begin by preparing a journal entry to record cash contribution to pension plan. Next, prepare the entry to record pension expense. Finally, prepare the entry to adjust pension liability to fair value
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