4-a. Determine Lakeside's pension expense for 2025.4-b. Prepare the appropriate journal entries to record the expense, the cash funding of plan assets, and payment of benefits toretirees.Complete this question by entering your answers in the tabs below.No1Req 4APrepare the appropriate journal entries to record the expense, the cash funding of plan assets, and payment of benefits toretirees.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter youranswers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).23Req 4BTransaction123Pension expensePlan assetsPBOPlan assetsX Answer is not complete.Amortization of prior service cost - OCIAmortization of net loss - OCICashPBOPlan assetsGeneral Journal< Req 4AReq 4BDebit30.016.0Credit4.030.016.0Show less A Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2024:Prior service cost at January 1, 2024, from plan amendment at the beginning of2022 (amortization: $4 million per year)Net loss-pensions at January 1, 2024 (previous losses exceeded previous gains)Average remaining service life of the active employee groupActuary's discount rate($ in millions)Beginning of 2024Service costInterest cost, 8%Loss (gain) on PBOLess: Retiree benefitsEnd of 2024Beginning of 2025Service costPBO$ 30048Interest cost, 8%Loss (gain) on PBOLess: Retiree benefitsEnd of 202524(2)(20)$ 350PBO$ 35038Beginning of 2024Return on plan assets, 7.5% (10%expected)285(16)$ 405Cash contributionsLess: Retiree benefitsEnd of 2024Assume the following actuary and trustee reports indicating changes in the PBO and plan assets of Lakeside Cable during2025:($ in millions)Beginning of 2025Return on plan assets, 15% (10%expected)$ 32 million$ 40 million10 years8%Cash contributionsLess: Retiree benefitsEnd of 2025PlanAssets$ 2001545(20)$ 240PlanAssets$ 2403630(16)$ 290

Pension refers to the amount that is paid by the company or government to the person who stopped…

4-a. Determine Lakeside's pension expense for 2025. 4-b. Prepare the appropriate journal entries to record the expense, the cash funding of plan assets, and payment of benefits to retirees. Complete this question by entering your answers in the tabs below. Req 4A X Answer is not complete. Req 4B Prepare the appropriate journal entries to record the expense, the cash funding of plan assets, and payment of benefits to retirees. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). Show less A

4-a. Determine Lakeside's pension expense for 2025. 4-b. Prepare the appropriate journal entries to record the expense, the cash funding of plan assets, and payment of benefits to retirees. Complete this question by entering your answers in the tabs below. Req 4A X Answer is not complete. Req 4B Prepare the appropriate journal entries to record the expense, the cash funding of plan assets, and payment of benefits to retirees. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). Show less A

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Actuary and trustee reports indicate the following changes in the PBO and plan assets of Mahomes Industries during 2024: Prior service cost at January 1, 2024, from plan amendment at the beginning of 2021 (amortization: $12 million per year) Net loss-AOCI at January 1, 2024 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate ($ in millions) PBO Beginning of 2024 Service cost Interest cost, 7% Loss (gain) on PBO Less: Retiree benefits End of 2024 Plan Assets Beginning of 2024 $ 1,400 88 Return on plan assets, 8% (10% expected) 98 (22) Cash contributions (54) Less: Retiree benefits $ 1,510 End of 2024 $ 84 million $ 480 million 10 years 7% $ 1,200 96 98 (54) $ 1,340 Required: 1-a. Determine Mahomes's pension expense for 2024. 1-b, 2. to 4. Prepare the appropriate journal entries to record the pension expense, to record any 2024 gains and losses, to record the cash contribution to plan assets and to record retiree…
Actuary and trustee reports indicate the following changes in the PBO and plan assets of Mahomes Industries during 2024: Prior service cost at January 1, 2024, from plan amendment at the beginning of 2021 (amortization: $5 million per year) Net loss-AOCI at January 1, 2024 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate ($ in millions) PBO Beginning of 2024 Service cost Interest cost, 7% Loss (gain) on PBO Less: Retiree benefits End of 2024 Req 1A Req 1B and 2 to 4 Complete this question by entering your answers in the tabs below. Pension Expense Service cost Interest cost Expected return on the plan assets Amortization of prior service cost Amortization of net loss Pension expense $ 700 81 49 (15) (40) $ 775 $ Required: 1-a. Determine Mahomes's pension expense for 2024. 1-b, 2. to 4. Prepare the appropriate journal entries to record the pension expense, to record any 2024 gains and losses, to record the cash…
Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2024: Prior service cost at January 1, 2024, from plan amendment at the beginning of 2022 (amortization: $4 million per year) Net loss-pensions at January 1, 2024 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate ($ in millions) Beginning of 2024 Service cost Interest cost, 8% Loss (gain) on PBO Less: Retiree benefits End of 2024 Beginning of 2025 Service cost PBO $ 300 48 Interest cost, 8% Loss (gain) on PBO Less: Retiree benefits End of 2025 24 (2) (20) $ 350 PBO $ 350 38 28 5 Assume the following actuary and trustee reports indicating changes in the PBO and plan assets of Lakeside Cable during 2025: ($ in millions) (16) Beginning of 2024 Return on plan assets, 7.5% (10% expected) $ 405 Cash contributions Less: Retiree benefits End of 2024 Beginning of 2025 Return on plan assets, 15% (10% expected) $…
Actuary and trustee reports indicate the following changes in the PBO and plan assets of Mahomes Industries during 2024: Prior service cost at January 1, 2024, from plan amendment at the beginning of 2021 (amortization: $7 million per year) Net loss-AOCI at January 1, 2024 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate ($ in millions) PBO Beginning of 2024 Service cost Interest cost, 7% Loss (gain) on PBO Less: Retiree benefits End of 2024 Req 1A Req 1B and 2 to 4 $ 900 83 63 (17) (44) $ 985 Plan Assets Complete this question by entering your answers in the tabs below. Pension expense Beginning of 2024 Return on plan assets, 8% (10% expected) Pension Expense Cash contributions Less: Retiree benefits End of 2024 Required: 1-a. Determine Mahomes's pension expense for 2024. 1-b, 2. to 4. Prepare the appropriate journal entries to record the pension expense, to record any 2024 gains and losses, to record the…
Actuary and trustee reports indicate the following changes in the PBO and plan assets of Mahomes Industries during 2024: Prior service cost at January 1, 2024, from plan amendment at the beginning of 2021 (amortization: $20 million per year) Net loss-AOCI at January 1, 2024 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate ($ in millions) РВО Beginning of 2024 Service cost Interest cost, 7% Loss (gain) on PBO Less: Retiree benefits End of 2024 Required: Plan Assets Beginning of 2024 $ 2,200 96 Return on plan assets, 8% (10% expected) 154 (38) Cash contributions (78) Less: Retiree benefits $ 2,350 End of 2024 1-a. Determine Mahomes's pension expense for 2024. $ 140 million $ 880 million 10 years 7% $ 2,000 160 106 (78) $ 2,196 1-b, 2. to 4. Prepare the appropriate journal entries to record the pension expense, to record any 2024 gains and losses, to record the cash contribution to plan assets and to record…
Actuary and trustee reports indicate the following changes in the PBO and plan assets of Mahomes Industries during 2024: Prior service cost at January 1, 2024, from plan amendment at the beginning of 2021 (amortization: $18 million per year) Net loss-AOCI at January 1, 2024 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate ($ in millions) РВО Beginning of 2024 Service cost Interest cost, 7% Loss (gain) on PBO Less: Retiree benefits End of 2024 $ 2,000 94 140 (28) (66) $ 2,140 Plan Assets Beginning of 2024 Return on plan assets, 8% (10% expected) Cash contributions Less: Retiree benefits End of 2024 $ 126 million $780 million 10 years 7% $1,800 144 104 (66) $ 1,982 Required: 1-a. Determine Mahomes's pension expense for 2024. 1-b, 2. to 4. Prepare the appropriate journal entries to record the pension expense, to record any 2024 gains and losses, to record the cash contribution to plan assets and to record retiree…
Required information [The following information applies to the questions displayed below.] Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2024: Prior service cost at January 1, 2024, from plan amendment at the beginning of 2022 (amortization: $6 million per year) Net loss-pensions at January 1, 2024 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate $ 50 million $60 million 10 years 8% ($ in millions) PBO Beginning of 2024 $ 500 Beginning of 2024 Service cost 66 Interest cost, 8% 40 Return on plan assets, 7.5% (10% expected) Loss (gain) on PBO (4) Cash contributions Less: Retiree benefits (52) Less: Retiree benefits End of 2024 $ 550 End of 2024 Plan Assets $360 27 65 (52) $400 Assume the following actuary and trustee reports indicating changes in the PBO and plan assets of Lakeside Cable during 2025: ($ in millions) Beginning of 2025 PBO $ 550…
ces Actuary and trustee reports indicate the following changes in the PBO and plan assets of Mahomes Industries during 2024: Prior service cost at January 1, 2024, from plan amendment at the beginning of 2021 (amortization: $23 million per year) Net loss-AOCI at January 1, 2024 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate ($ in millions) PBO Beginning of 2024 Service cost Interest cost, 7% Loss (gain) on PBO Less: Retiree benefits End of 2024 Req 1A Req 18 and 2 to 4 $2,500 99 175 (33) (76) $ 2,665 Pension expense Plan Assets Complete this question by entering your answers in the tabs below. Pension Expense Beginning of 2024 Return on plan assets, 8% (10% expected) Cash contributions Less: Retiree benefits End of 2024 Required: 1-8. Determine Mahomes's pension expense for 2024. 1-b, 2. to 4. Prepare the appropriate Journal entries to record the pension expense, to record any 2024 gains and losses, to…
Actuary and trustee reports indicate the following changes in the PBO and plan assets of Douglas-Roberts Industries during 2021: Prior service cost at Jan. 1, 2021, from plan amendment at the beginning of 2018 (amortization: $5 million per year) Net loss-AOCI at Jan.1, 2021 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate ($ in millions) Beginning of 2821 Service cost Interest cost, 7% Loss (gain) on PBO Less: Retiree benefits End of 2021 PBO Req 1A $ 800 58 Req 18 and 2 to 4 56 (13) (34) Pension expense $ 867 Plan Assets Beginning of 2021. Return on plan assets, 8% (10% expected) Complete this question by entering your answers in the tabs below. Cash contributions Less: Retiree benefits End of 2021 $ 600 Required: 1-a. Determine Douglas-Roberts's pension expense for 2021. 1-b, 2. to 4. Prepare the appropriate Journal entries to record the pension expense, to record any 2021 gains and losses, to record the…
Actuary and trustee reports indicate the following changes in the PBO and plan assets of Mahomes Industries during 2024: Prior service cost at January 1, 2024, from plan amendment at the beginning of 2021 (amortization: $16 million per year) $ 112 million Net loss—AOCI at January 1, 2024 (previous losses exceeded previous gains) $ 680 million Average remaining service life of the active employee group 10 years Actuary's discount rate 7% ($ in millions) PBO Plan Assets Beginning of 2024 $ 1,800 Beginning of 2024 $ 1,600 Service cost 92 Return on plan assets, 8% (10% expected) 128 Interest cost, 7% 126 Loss (gain) on PBO (26) Cash contributions 102 Less: Retiree benefits (62) Less: Retiree benefits (62) End of 2024 $ 1,930 End of 2024 $ 1,768 1-a. Determine Mahomes's pension expense for 2024. 1-b, 2. to 4. Prepare the appropriate journal entries to record the pension expense, to record any 2024 gains and losses, to record the cash contribution to…
Actuary and trustee reports indicate the following changes in the PBO and plan assets of Douglas-Roberts Industries during 2021. Prior service cost at Jan. 1, 2021, from plan amendment at the $21 million beginning of 2018 (amortization: $3 million per year) Net loss –ADCI at Jan. 1, 2021 (previous losses exceeded previous gains) $220 million Average remaining service life of the active employee group 10 years Actuary’s discount rate 7% ($ in millions) Plan PBO Assets Beginning of 2021 $800…
Actuary and trustee reports indicate the following changes in the PBO and plan assets of Douglas-Roberts Industries during 2021: Prior service cost at Jan. 1, 2021, from plan amendment at thebeginning of 2018 (amortization: $5 million per year) $ 35 million Net loss—AOCI at Jan.1, 2021 (previous losses exceeded previous gains) $ 180 million Average remaining service life of the active employee group 10 years Actuary's discount rate 7 % ($ in millions) Plan PBO Assets Beginning of 2021 $ 800 Beginning of 2021 $ 600 Service cost 58 Return on plan assets, 8% (10% expected) 48 Interest cost, 7% 56 Loss (gain) on PBO (13 ) Cash contributions 100 Less: Retiree benefits (34 ) Less: Retiree benefits (34 ) End of 2021 $ 867 End of 2021 $ 714 Required:1-a. Determine Douglas-Roberts's pension expense for 2021.1-b, 2. to 4. Prepare the…