Preparing journal entry for pension plan. A consumer foods company reports the following information related to its only pension plan for 2008 (amounts in millions).
|
Pension Plan Assets, Beginning of 2008 |
$5,086 |
|
Plus Actual Return on Investments |
513 |
|
Plus Employer Contribution |
19 |
|
Less Benefits Paid |
(233) |
|
Pension Plan Assets, End of 2008 |
$5,385 |
|
Pension Plan Liability, Beginning of 2008 |
$5,771 |
|
Plus Service Cost |
245 |
|
Plus Interest Cost |
319 |
|
Less Actuarial Gain |
(155) |
|
Less Benefits Paid |
(233) |
|
Pension Plan Liability, End of 2008 |
$5,947 |
|
Service Cost |
$ 245 |
|
Interest Cost |
319 |
|
Expected Return on Pension Plan Investments |
(391) |
|
Amortization of Actuarial Losses |
167 |
|
Net Pension Expense |
$ 340 |
Give a single journal entry for the consumer foods company to recognize pension expense, the pension plan contribution, and the change in the net pension asset or net pension liability for 2008. 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.