Problem
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:
Task
• Prepare the 2011 journal entry to record pension expense.
• Prepare the journal entry(s) to record any 2011 gains and losses.
• Prepare the 2011 journal entries to record the contribution to plan assets and benefit payments to retirees.
• Determine the balances at December 31, 2011, in the PBO, plan assets, the net gain-AOCI, and prior service cost-AOCI and show how the balances changed during 2011. [Hint: You might find T-accounts useful.]
• 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?
The response must include a reference list. One-inch margins, double-space, Using Times New Roman 12 pnt font and APA style of writing and citations.