Beale Management has a noncontributory, defined benefit pension plan. On December the end of Beale's fiscal year the following pensionrelated data were available:
Projected Benefit Obligation $ in millions
Balance, January $
Service cost
Interest cost, discount rate,
Gain due to changes in actuarial assumptions in
Pension benefits paid
Balance, December $
Plan Assets $ in millions
Balance, January $
Actual return on plan assets
Expected return on plan assets, $
Cash contributions
Pension benefits paid
Balance, December $
January balances: $ in millions
Pension asset $
Prior service costAOCI amortization $ per year
Net gainAOCI any amortization over years
Required:
to Prepare the journal entries required for the pension during
Determine the balances at December in the net gainAOCI and prior service costAOCIHint: You might find Taccounts useful.
What amount will Beale report in its balance sheet as a net pension asset or net pension liability for the funded status of the plan?
