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I do not understand how to do the three questions, can you also show calculations please Required: 1. Determine Reeves pension expense for 2018 and
I do not understand how to do the three questions, can you also show calculations please
Required:
1. Determine Reeves pension expense for 2018 and prepare the appropriate jounrnal entires to record the expense as well as the cash contribution to plan assets and payment of benefits to retirees.
2. Determine the new gains and/or losses in 2018 and prepare the appropriate journal etntr to record them.
3. What amount will Reeves report in its 2018 balance sheet? Will a net pension asset or net pension liability be reported?
Prior service cost at January 1, 2018, from plan amendment at the beginning of 2016 (amortization: $8 million per year) $64 million Net loss - pensions at January 1, 2018 (previous losses exceeded previous gains $80 million Average remaining service life of the active employee group 10 years 8% Actuary's discount rate PBO ($ in millions) 600 96 Beginning of 2018 Service cost Interest cost, 8% Loss (gain) on PBO Less: Retiree benefits End of 2018 Plan Assets ($ in millions) Beginning of 2018 S 400 Return on plan assets, 7.5% (10% expected) Cash contributions 90 Less: Retiree benefits (40) End of 2018 480 (40) 700 Prior service cost at January 1, 2018, from plan amendment at the beginning of 2016 (amortization: $8 million per year) $64 million Net loss - pensions at January 1, 2018 (previous losses exceeded previous gains $80 million Average remaining service life of the active employee group 10 years 8% Actuary's discount rate PBO ($ in millions) 600 96 Beginning of 2018 Service cost Interest cost, 8% Loss (gain) on PBO Less: Retiree benefits End of 2018 Plan Assets ($ in millions) Beginning of 2018 S 400 Return on plan assets, 7.5% (10% expected) Cash contributions 90 Less: Retiree benefits (40) End of 2018 480 (40) 700
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