GSA LTD has a defined benefit pension plan. Characteristics of the plan during 2021 are as follows: The expected long-te
Posted: Tue Nov 16, 2021 9:29 am
GSA LTD has a defined benefit pension plan. Characteristics of
the plan during 2021 are as follows:
The expected long-term rate of return on plan assets was 8%. There
were no AOCI balances related to pensions on January 1, 2021, but
at the end of 2021, the company amended the pension formula,
creating a prior service cost of $12 million.
Required:
1. Calculate the pension expense for
2021.
2. Prepare the journal entries to record (a)
pension expense, (b) gains or losses, (c) prior service cost, (d)
funding,
and (e) payment of benefits for 2021.
3. What amount will GSA LTD report in its
2021 balance sheet as a net pension asset or net pension
liability?
the plan during 2021 are as follows:
The expected long-term rate of return on plan assets was 8%. There
were no AOCI balances related to pensions on January 1, 2021, but
at the end of 2021, the company amended the pension formula,
creating a prior service cost of $12 million.
Required:
1. Calculate the pension expense for
2021.
2. Prepare the journal entries to record (a)
pension expense, (b) gains or losses, (c) prior service cost, (d)
funding,
and (e) payment of benefits for 2021.
3. What amount will GSA LTD report in its
2021 balance sheet as a net pension asset or net pension
liability?