Question :
103. The Venus Manufacturing Company reports the following information related to : 1245699
103. The Venus Manufacturing Company reports the following information related to its only pension plan for 2013 (amounts in millions).
Pension Plan Assets, Beginning of 2013.. . . . . . . . . . . . . . . . . . . . . . . . . . .
$43,484
Plus Actual Return on Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4,239
Plus Employer Contribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
526
Less Benefits Paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pension Plan Assets, End of 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$46,203 ======
Pension Plan Liability, Beginning of 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . .
$45,183
Plus Service Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
908
Plus Interest Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2,497
Less Actuarial Gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(960)
Less Benefits Paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pension Plan Liability, End of 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$45,582 ======
Service Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$908
Interest Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2,497
Expected Return on Pension Plan Investments . . . . . . . . . . . . . . . . . . . . . . .
(3,456)
Amortization of Actuarial Losses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net Pension Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 1,050 ======
Give a single journal entry on the books of the Venus Manufacturing Company to recognize pension expense, the pension plan contribution, and the change in the net pension asset or net pension liability for 2013. Be sure to consider needed entries in Other Comprehensive Income, supporting the entry in this account with amounts from the disclosures above. Ignore income taxes.
(Preparing journal entry for pension plan.) (Amounts in Millions)
104. Fortune, an automobile manufacturer reports the following information related to its health care plan for 2013 (amounts in millions).
Health Care Plan Assets, Beginning of 2013……………………………………
$ 6,497
Plus Actual Return on Investments…………………………………………………….
510
Plus Employer Contribution ……………………………………………………………
0
Less Benefits Paid……………………………………………………………………….
Health Care Plan Assets, End of 2013…………………………………………….
$ 5,460 =====
Health Care Plan Liability, Beginning of 2013…………………………………..
$39,274
Plus Service Cost……………………………………………………………………………
617
Plus Interest Cost ………………………………………………………………………….
2,004
Less Actuarial Gain……………………………………………………………………….
(9,485)
Less Benefits Paid…………………………………………………………………………
Health Care Plan Liability, End of 2013 ……………………………………………
$30,863======
Service Cost……………………………………………………………………………………
$ 617
Interest Cost……………………………………………………………………………………
2,004
Expected Return on Health Care Plan Investments. ……………………………
(479)
Amortization of Actuarial Losses………………………………………………………
Net Health Care Benefits Expense………………………………………………….
$ 2,183 ======
Give a single journal entry for the Fortune, to recognize health care benefits expense, the health care plan contribution, and the change in the net health care benefits asset or net health care benefits liability for 2013. Be sure to consider needed entries in Other Comprehensive Income, supporting the entry in this account with amounts from the preceding disclosures. Ignore income taxes.
(Preparing journal entry for health care plan.) (Amounts in Millions)
