Record pension expense, funding, and gains and losses; determine account balances (answer attached)

E 17-19 Record pension expense, funding, and gains and losses; determine account balances



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:




Projected Benefit Obligation


($in millions)












Balance, January 1, 2011


$480




Service cost


82




Interest cost, discount rate, 5%


24




Gain due to changes in actuarial assumptions in 2011


(10)




Pension benefits paid


(40)












Balance, December 31, 2011


$536












Plant Assets







Balance, January 1, 2011


$500




Actual return on plan assets


40




(Expected return on plan assets, $45)







Cash Contributions


70




Pension benefits paid


(40)












Balance, December 31, 2011


$570












January 1, 2011, balances:







Pension asset


$20




Prior service cost-AOCI (amortization $8 per year)


48




Net gain-AOCI (any amortization over 15 years)


80




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-ACOI, and prior service cost-ACOI 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?
p.s I really need some tutoring with this I am so lost. Do you kno of anyone that tutors in Florida?