E 17–19 Record pension expense, funding, and gains and losses; determine account balances ● LO6 LO7 LO8
Beale Management has a noncontributory, defined benefit pension plan.
On December 31, 2011 (the end of Beale’s fiscal year), the following
pension-related data were available:
Required:
1. Prepare the 2011 journal entry to record pension expense.
2. Prepare the journal entry(s) to record any 2011 gains and losses.
3. Prepare the 2011 journal entries to record the contribution to plan assets and benefit payments to retirees.
4. Determine the
balances at December 31, 2011, in the PBO, plan assets, the net
gain–AOCI, and prior service cost–AOCI and show how the balances changed
during 2011. [Hint: You might find T-accounts useful.]
5. What amount will
Beale report in its 2011 balance sheet as a net pension asset or net
pension liability for the funded status of the plan?
