Required: Determine Scholz’s pension expense for 2019 and prepare the appropriate journal entries to record the expense as well as the cash contribution to plan assets and payment of benefits

Required: Determine Scholz’s pension expense for 2019 and prepare the appropriate journal entries to record the expense as well as the cash contribution to plan assets and payment of benefits to retirees. Determine the new gains and/or losses in 2019 and prepare the appropriate journal entry(s) to record them. Prepare a pension spreadsheet to assist you in determining end of 2019 balances in the PBO, plan assets, prior service cost—AOCI, the net loss—AOCI, and the pension liability. Required: 4. Determine Scholz’s pension expense for 2020 and prepare the appropriate journal entries to record the expense, the cash funding of plan assets, and payment of benefits to retirees. 5. Determine the new gains and/or losses in 2020 and prepare the appropriate journal entry(s) to record them. 6. Prepare a pension spreadsheet to assist you in determining end of 2020 balances in the PBO, plan assets, prior service cost—AOCI, the net loss—AOCI, and the pension liability. Transcribed Image Text: Assume the following actuary and trustee reports indicating changes in the PBO and plan assets
of Scholz Nursing Home during 2020:
(S in millions)
Plan
PBO
Assets
Be ginning of 2020
Be ginning of 2020
Re tum on plan assets
7.5% (10% expected)
350
240
Service cost
38
Interest cost, 8%
28
36
Loss (gain) on PBO
Cash contributions
30
Less: Retiree benefits
(16)
Less: Retiree benefits
(16)
End of 2020
405
End of 2020
290 Transcribed Image Text: Actuary and trustee reports indicate the following changes in the PBO and plan assets of Scholz Nursing Home
during 2019:
Prior service cost at 1/1/19, from plan amendment at the beginning
of 2017 (amortization: $4 million per year)
Net loss-pensions at 1/1/19 (previous losses exceeded previous gains)
$32 million
$40 million
10 years
Average remaining service life of the active employee group
Actuary’s discount rate
8%
(S in millions)
Plan
PBO
Assets
Be ginning of 2019
Re tum on plan assets
7.5% (10% expected)
Beginning of 2019
300
200
Service cost
48
Interest cost, 8%
24
15
Loss (gain) on PBO
(2)
Cash contributions
45
Less: Retiree benefits
(20)
Less: Retiree benefits
(20)
End of 2019
350
End of 2019
240

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