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: Projected Benefit Obligation ($ in millions)
Balance, January 1, 2021 $ 520
Service cost 54
Interest cost, discount rate, 5% 26
Gain due to changes in actuarial assumptions in 2021 (10 )
Pension benefits paid (26 )
Balance, December 31, 2021 $ 564
Plan Assets ($ in millions)
Balance, January 1, 2021 $ 540
Actual return on plan assets 36
(Expected return on plan assets, $41)
Cash contributions 77
Pension benefits paid (26 )
Balance, December 31, 2021 $ 627
January 1, 2021, balances: ($ in millions)
Pension asset $ 20
Prior service cost—AOCI (amortization $4 per year) 20
Net gain—AOCI (any amortization over 10 years) 104
Required:
Prepare a pension spreadsheet to show the relationship among the PBO, plan assets, prior service cost, the net gain, pension expense, and the net pension asset. (Enter credit amounts with a minus sign and debit amounts with a positive sign. Enter your answers in millions.)
Prior Net Pension
Plan Service Net Pension (Liability) /
($ in millions) PBO Assets Cost-AOCI Gain-AOCI Expense Cash Asset
Balance, Jan. 1, 2021
Service cost
Interest cost, 5%
Expected return on assets
Adjust for:
Loss on assets
Amortization of:
Prior service cost
Net gain
Gain on PBO
Cash funding
Retiree benefits
Balance, Dec. 31, 2021