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 Required: Plan Assets Beginning of 2024 $ 2,500 99 Return on plan assets, 8% (10% expected) 175 (33) Cash contributions (76) Less: Retiree benefits $ 2,665 End of 2024 1-a. Determine Mahomes's pension expense for 2024. $ 161 million $ 1,030 million 10 years 7% $ 2,300 184 109 (76) $ 2,517 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 benefits. Complete this question by entering your answers in the tabs below. Req 1A Req 1B and 2 to 4 Determine Mahomes's pension expense for 2024. Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Pension Expense Service cost Interest cost 99 175 Expected return on the plan assets (184) Amortization of prior service cost 16 Pension expense $ 106
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 Required: Plan Assets Beginning of 2024 $ 2,500 99 Return on plan assets, 8% (10% expected) 175 (33) Cash contributions (76) Less: Retiree benefits $ 2,665 End of 2024 1-a. Determine Mahomes's pension expense for 2024. $ 161 million $ 1,030 million 10 years 7% $ 2,300 184 109 (76) $ 2,517 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 benefits. Complete this question by entering your answers in the tabs below. Req 1A Req 1B and 2 to 4 Determine Mahomes's pension expense for 2024. Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Pension Expense Service cost Interest cost 99 175 Expected return on the plan assets (184) Amortization of prior service cost 16 Pension expense $ 106
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 5P
Related questions
Question
please provide answer with compulsory explanation ,narrations, computation for each parts , steps clearly and completely answer in text form
Transcribed Image Text: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
$ 2,500
Plan Assets
Beginning of 2024
99
Return on plan assets, 8% (10%
expected)
175
(33)
Cash contributions
(76)
Less: Retiree benefits
$ 2,665
End of 2024
$ 161 million.
$ 1,030 million
10 years
7%
$ 2,300
184
109
(76)
$ 2,517
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 benefits.
Complete this question by entering your answers in the tabs below.
Req 1A
Req 1B and 2
to 4
Determine Mahomes's pension expense for 2024.
Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should
be entered as 10).
Pension Expense
Service cost
Interest cost
$
99
175
•
Expected return on the plan assets
Amortization of prior service cost
(184)
16
Pension expense
$
106
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step 1: Explain pension expense:
VIEWStep 2: 1-a. Determine the pension expense for 2024:
VIEWStep 3: 1-b. Prepare the journal entry to record the pension expenses as follows
VIEWStep 4: 2. Pass the journal entry to record the gains and losses as follows:
VIEWStep 5: 3. Prepare the journal entry to record the cash contribution to plan assets as follows:
VIEWStep 6: 4. Prepare the journal entry to record the retiree benefit as follows:
VIEWSolution
VIEW
Step by step
Solved in 7 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning