Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2021 (the end of Beale’s fiscal year), the following pension-related data were available:
Required:
1. Prepare the 2021 journal entry to record pension expense.
2. Prepare the journal entry(s) to record any 2021 gains and losses.
3. Prepare the 2021 journal entries to record the contribution to plan assets and benefit payments to retirees.
4. Determine the balances at December 31, 2021, in (a) the PBO, (b) plan assets, (c) the net gain—AOCI, and (d) prior service cost—AOCI. Show how the balances changed during 2021. [Hint: You might find
T-accounts useful.]
5. What amount will Beale report in its 2021 as a net pension asset or net pension liability for the funded status of the plan?
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