Actuary and trustee reports indicate the following changes in the PBO and plan assets of Douglas-Roberts Industries during 2021Prior service cost at Jan. 1, 2021, from plan amendment at thebeginning of 2018 (amortization: $5 million per year)Net loss-AOCI at Jan.1, 2021 (previous losses exceeded previous gains)Average remaining service life of the active employee groupActuary's discount rate(5 in millions)Beginning of 2021Service costInterest cost, 7%Loss (gain) on PBOLess: Retiree benefitsEnd of 2821PBOReq 1AReq 18 and 2to 4$ 60020Pension expense42(19)(40)$.653PlanAssetsBeginning of 2021Return on plan assets, i(10% expected)Cash contributionsLess: Retiree benefitsEnd of 2021$40032Required:1-a. Determine Douglas-Roberts's pension expense for 2021.1-b, 2. to 4. Prepare the appropriate journal entries to record the pension expense, to record any 2021 gains and losses, to record thecash contribution to plan assets and to record retiree benefits.Complete this question by entering your answers in the tabs below.Reg A106(40)$ 498Determine Douglas-Roberts's pension expense for 2021. (Amounts to be deducted should be indicated with a minus sign.Enter your answers in millions (ie 10,000,000 should be entered as 10).)Pension Expense$ 35 million$240 million10 years7%Req 18 and 2 to 4 Required:1-a. Determine Douglas-Roberts's pension expense for 20211-b, 2. to 4. Prepare the appropriate journal entries to record the pension expense, to record any 2021 gains and losses, to record thecash contribution to plan assets and to record retiree benefitsComplete this question by entering your answers in the tabs below.Req 1AReq 18 and 2to 4Prepare the appropriate journal entries to record the pension expense, to record any 2021 gains and losses, to record the cashcontribution to plan assets and to record retiree benefits. (If no entry is required for a transaction/event, select "No journal entryrequired" in the first account field. Enter your answers in millions (Le 10,000,000 should be entered as 10).)View transaction listJournal entry worksheet1231Record annual pension expenseNote: Exer debts before credits45Genet JumalDetCreditView general journal

Defined Benefit Obligation Defined benefit obligation which is considered to be one of the oldest…

Less: Retiree benefits End of 2021 Less: Retiree benefits (40) $653 End of 2021 (40) $ 498 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 cash contribution to plan assets and to record retiree benefits.

Less: Retiree benefits End of 2021 Less: Retiree benefits (40) $653 End of 2021 (40) $ 498 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 cash contribution to plan assets and to record retiree benefits.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 7E

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