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Lacy Construction has a noncontributory, defined benefit pension plan. At December 31, 2018, Lacy received the following information: Projected Benefit Obligation ($ in millions) Balance,
Lacy Construction has a noncontributory, defined benefit pension plan. At December 31, 2018, Lacy received the following information:
Projected Benefit Obligation | ($ in millions) |
Balance, January 1 | 700 |
Service cost | 94 |
Prior service cost | 46 |
Interest cost(5.0%) | 35 |
Benefits paid | (88) |
Balance, December 31 | 787 |
Plan Assets | ($ in millions) |
Balance, January 1 | 570 |
Actual return on plan assets | 58 |
Contributions 2018 | 94 |
Benefits paid | (88) |
Balance, December 31 | 634 |
Required: 1. Determine Lacy's pension expense for 2018. 2. Prepare the journal entry(s) to record Lacys pension expense, gains or losses, prior service cost, funding, and payment of retiree benefits for 2018.
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