Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 17-16 Determine and record pension expense and gains and losses; funding and retiree benefits [LO17-6, 17-7] Actuary and trustee reports indicate the following changes

image text in transcribed
image text in transcribed
image text in transcribed
Exercise 17-16 Determine and record pension expense and gains and losses; funding and retiree benefits [LO17-6, 17-7] Actuary and trustee reports indicate the following changes in the PBO and plan assets of Douglas Roberts Industries during 2018: $20 illion Prior service cost at Jan. 1. 2018, from plan amendment at the beginning of 2015 (amortization: 54 million per year) Net loss-ACE at Jan. 1, 2018 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate $110 illon 10 years (5 in millions) Assets $ 58 Beginning of 2018 Service cost Interest cost, 4X Loss (gain) on P30 Less Retire benefits End of 2018 70 Beginning of 2018 68 Return on plan assets, 5 ( expected) 31.2 (18) Cash contributions (39) Less Retire benefits $22.2 do 2018 Required: 1-a. Determine Douglas-Roberts' pension expense for 2018, 1.b, 2. to 4. Prepare the appropriate journal entries to record the pension expense, to record any 2018 gains and losses, to record the cash contribution to plan assets and to record retiree benefits Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B and 2 to 4 Determine Douglas-Roberts' pension expense for 2018. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions rounded to 1 decimal place (i.e., 5.500.000 should be entered as 5.5).) Pension Expense Pension expense Req 1 and 2 to 4 > Req 1A Req 18 and 2 Prepare the appropriate journal entries to record the pension expense, to record any 2018 gains and losses, to record the cash contribution to plan assets and to record retiree benefits. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (.e. 5.500,000 should be entered as 5.5).) Show less View transaction list Journal entry worksheet 2 3 4 5 Record annual pension expense, Notes Enter debits before credits General Journal Debit Credit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Performance Auditing

Authors: Shrivastava A.

1st Edition

8131316254, 978-8131316252

More Books

Students also viewed these Accounting questions