Problem 2

required 1-5

all Metro by T-Mobile 12:33 AM 7 0 ezto.mheducation.com - Private 2. Award: 25.00 points Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2021 (the end of Beale's fiscal year), the following pension-related data were available: Projected Benefit Obligation ($ in millions) Balance, January 1, 2021 $ 460 Service cost 48 Interest cost, discount rate, 5% 23 Gain due to changes in actuarial assumptions in 2021 (14) Pension benefits paid (23 ) Balance, December 31, 2021 $ 494 Plan Assets ($ in millions) Balance, January 1, 2021 $ 480 Actual return on plan assets 33 (Expected return on plan assets, $38) Cash contributions 74 Pension benefits paid (23) Balance, December 31, 2021 $ 564 January 1, 2021, balances: ($ in millions) Pension asset $ 20 Prior service cost-AOCI (amortization $7 per year) 49 Net gain-AOCI (any amortization over 10 years) 88 Required: 1. to 3. Prepare the 2021 journal entries to record pension expense, to record any 2021 gains and losses and the contribution to plan assets and benefit payments to retirees. 4. Determine the balances at December 31, 2021, in the PBO, plan assets, the net gain-AOCI, and prior service cost-AOCI [Hint: You might find T-accounts useful.] 5. What amount will Beale report in its 2021 balance sheet as a net pension asset or net pension liability for the funded status of the plan? Complete this question by entering your answers in the tabs below. Req 1 to 3 Req 4 Req 5 Prepare the 2021 journal entries to record pension expense, to record any 2021 gains and losses and the contribution to plan assets and benefit payments to retirees. (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).) Show less A View transaction list Journal entry worksheet 2 3 5 Record the pension expense. Note: Enter debits before credits. Event General Journal Debit Credit