Problem 17-12 Determine pension expense; journal entries; two years [LO17-3, 17-4,17-5,17-6,17-7, 17-8] The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal years 2018 and 2019 are presented below ($ in millions) Information Provided by Pension Plan Actuary: a. Projected benefit obligation as of December 31, 2017 $3,350 b. Prior service cost from plan amendment on January 2, 2018-$650 (straight-line amortization for 10-year average remaining service period) c. Service cost for 2018 $650 d. Service cost for 2019 $700 e. Discount rate used by actuary on projected benefit obligation for 2018 and 2019-10% f. Payments to retirees in 2018- $510 g. Payments to retirees in 2019 $580 h. No changes in actuarial assumptions or estimates i. Net gain-AOCI on January 1, 2018 $375 j. Net gains and losses are amortized for 10 years in 2018 and 2019. Information Provided by Pension Fund Trustee a. Plan asset balance at fair value on January 1, 2018 $2,400 b. 2018 contributions $670 C. 2019 contributions-$720 d. Expected long-term rate of return on plan assets-12% e. 2018 actual return on plan assets $220 f. 2019 actual return on plan assets $270 Required 1. Calculate pension expense for 2018 and 2019 2. Prepare the journal entries for 2018 and 2019 to record pension expense 3. Prepare the journal entries for 2018 and 2019 to record any gains and losses and new prior service cost. 4. Prepare the journal entries for 2018 and 2019 to record the cash contribution to plan assets and benefit payments to retirees Required 1Required 2 Required 3 Required 4 Calculate pension expense for 2018 and 2019. (Do not round intermediate calculations. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) $ in millions) 2018 2019 Pension expense Required Required 2 Required 3Required 4 Prepare the journal entries for 2018 and 2019 to record any gains and losses and new prior service cost. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first ac field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) No Date General Journal Debit Credit 2018 2018 2019 Required 1Required 2Required 3Required 4 Prepare the journal entries for 2018 and 2019 to record the cash contribution to plan assets and benefit payments to retire (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answ in millions. (i.e., 10,000,000 should be entered as 10).) No Date General Journal Debit Credit 2018 2 2019 2018 4 2019
