Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help with the last 2 and 3 ! Mayer Corporation has a defined benefit pension plan. Mayer's policy is to fund the plan annually,

image text in transcribed

Please help with the last 2 and 3 !

Mayer Corporation has a defined benefit pension plan. Mayer's policy is to fund the plan annually, cash payments being made at the end of each year. Data relating to the pension plan for 2021 are as follows: December 31 ($ in millions) 2021 2020 $1,570 $1,300 $ 164 87 Plan assets Net Pension Expense for 2021: Service cost Interest cost (6% * $1,450) Actual return on the plan assets (12% * $1,300 = $156) Adjusted for: $13 gain on the plan assets* Amortization of prior service cost Amortization of net loss (143) 7 3 $ 118 *(12% * $1,300) (11% * $1,300) Required: Recreate the journal entries used to record Mayer's 2021 pension expense, gain on plan assets, and funding of plan assets in order t determine the cash paid to the pension trustee as reported in the statement of cash flows. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Answer is not complete. No Event General Journal Debit Credit 1 1 143 118 Plan assets Pension expense Amortization of prior service cost - OCI Amortization of net loss - OCI PBO 7 3 251 2 2 Plan assets (10) Gain - OCI 10 x 3 3 Plan assets Cash

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

Cost Accounting Principles And Applications

Authors: Horace R. Brock

5th Edition

0070081522, 978-0070081529

More Books

Students also viewed these Accounting questions

Question

highlight how to collect and record interview and diary based data;

Answered: 1 week ago

Question

clarify the relationship between research, theory and practice;

Answered: 1 week ago

Question

evaluate the quality of your data;

Answered: 1 week ago