Question
The following is an incomplete pension spreadsheet for the current year for Desperado Corporation. ($ in millions) debit (credit) PBO Plan Assets Prior Service Cost
- The following is an incomplete pension spreadsheet for the current year for Desperado Corporation.
| ($ in millions) debit (credit) |
PBO |
Plan Assets | Prior Service Cost | Net (Gain) Loss |
Pension Expense |
Cash |
Net Pension (Liability)/Asset |
| Beginning balance | (500) | 250 |
| 58 |
|
|
|
| Service cost |
|
|
|
| 62 |
|
|
| Interest cost |
|
|
|
|
|
|
|
| Expected return on assets |
|
|
|
| (23) |
|
|
| (Gain)/loss on assets |
|
|
| (2) |
|
|
|
| Amortization of: |
|
|
|
|
|
|
|
| Prior service cost |
|
| (6) |
|
|
|
|
| Net (gain)/loss |
|
|
|
|
|
|
|
| Loss on PBO | (26) |
|
| 26 |
|
|
|
| Contributions to fund |
|
|
|
|
| (56) |
|
| Retiree benefits paid | 43 | (43) | _____ | _____ | _____ | _____ | _____ |
| Ending balance | (575) | 288 | 54 | 79 | _____ | _____ | (287) |
Required:
1) Complete the pension spreadsheet.
2) Prepare the journal entry to record pension expense for the year.
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College Accounting A Practical Approach
Authors: Jeffrey Slater
12th edition
978-0132772068, 133468100, 013277206X, 9780133468106, 978-0133133233
