Caterpillar, inc. discloses the following pension footnote in its 2016 10-k report (in millions):

u. s. pension benefits

2016

change in benefit obligation

benefit obligation, beginning of year

$15,792

service cost

119

interest cost

517

plan amendments



actuarial losses (gains)

767

foreign currency exchange rates



participant contributions



benefits paid - gross

(970

)

less: federal subsidy on benefits paid



curtailments, settlements and termination benefits

(7

)

benefit obligation, end of year

$16,218

the fair value of caterpillar’s u. s. pension assets is $11,354 million as of 2016.

what is the funded status of the plan, and how will this be reflected on caterpillar’s balance sheet?

select one:

a. the pension plan is overfunded by $4,438 million and is reported as an asset on the company’s balance sheet.

b. the pension plan is underfunded by $4,864 million and is reported as a liability on the company’s balance sheet.

c. the pension plan is overfunded by $4,864 million and is reported as an asset on the company’s balance sheet.

d. the pension plan is underfunded by $6,804 million and is reported as a liability on the company’s balance sheet.

e. the pension plan is underfunded by $4,438 million and is reported as a liability on the company’s balance sheet.

The u.s. stock market has returned an average of about 9% per year since 1900. this return works out to a real return (i.e., adjusted for inflation) of approximately 6% per year. if you invest $100,000 and you earn 6% a year on it, how much real purchasing power will you have in 30 years?

During january 2018, the following transactions occur: january 1 purchase equipment for $20,600. the company estimates a residual value of $2,600 and a five-year service life. january 4 pay cash on accounts payable, $10,600. january 8 purchase additional inventory on account, $93,900. january 15 receive cash on accounts receivable, $23,100 january 19 pay cash for salaries, $30,900. january 28 pay cash for january utilities, $17,600. january 30 firework sales for january total $231,000. all of these sales are on account. the cost of the units sold is $120,500. the following information is available on january 31, 2018. depreciation on the equipment for the month of january is calculated using the straight-line method. the company estimates future uncollectible accounts. at the end of january, considering the total ending balance of the accounts receivable account as shown on the general ledger tab, $4,100 is now past due (older than 90 days), while the remainder of the balance is current (less than 90 days old). the company estimates that 50% of the past due balance will be uncollectible and only 3% of the current balance will become uncollectible. record the estimated bad debt expense. accrued interest revenue on notes receivable for january. unpaid salaries at the end of january are $33,700. accrued income taxes at the end of january are $10,100

The petty cash fund has a current balance of $ 350, which is the established fund balance. based on activity in the fund, it is determined that the balance needs to be changed to $ 450. which journal entry is needed to make this change?