Pension data for Barry Financial Services Inc. include the following: ($ in thousands) Discount rate, 7% Expected return on plan assets, 10% Actual return on plan assets, 9% Service cost, 2021 $ 460 January 1, 2021: Projected benefit obligation 3,050 Accumulated benefit obligation 2,750 Plan assets (fair value) 3,150 Prior service cost—AOCI (2021 amortization, $40) 400 Net gain—AOCI (2021 amortization, $12) 480 There were no changes in actuarial assumptions. December 31, 2021: Cash contributions to pension fund, December 31, 2021 395 Benefit payments to retirees, December 31, 2021 420 Required: 1. Determine pension expense for 2021. 2. Prepare the journal entries to record (a) pension expense, (b) gains and losses (if any), (c) funding, and (d) retiree benefits for 2021.
Pension data for Barry Financial Services Inc. include the following: ($ in thousands) Discount rate, 7% Expected return on plan assets, 10% Actual return on plan assets, 9% Service cost, 2021 $ 460 January 1, 2021: Projected benefit obligation 3,050 Accumulated benefit obligation 2,750 Plan assets (fair value) 3,150 Prior service cost—AOCI (2021 amortization, $40) 400 Net gain—AOCI (2021 amortization, $12) 480 There were no changes in actuarial assumptions. December 31, 2021: Cash contributions to pension fund, December 31, 2021 395 Benefit payments to retirees, December 31, 2021 420 Required: 1. Determine pension expense for 2021. 2. Prepare the journal entries to record (a) pension expense, (b) gains and losses (if any), (c) funding, and (d) retiree benefits for 2021.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Pension data for Barry Financial Services Inc. include the following:
| ($ in thousands) | |||
| Discount rate, 7% | |||
| Expected return on plan assets, 10% | |||
| Actual return on plan assets, 9% | |||
| Service cost, 2021 | $ | 460 | |
| January 1, 2021: | |||
| Projected benefit obligation | 3,050 | ||
| Accumulated benefit obligation | 2,750 | ||
| Plan assets (fair value) | 3,150 | ||
| Prior service cost—AOCI (2021 amortization, $40) | 400 | ||
| Net gain—AOCI (2021 amortization, $12) | 480 | ||
| There were no changes in actuarial assumptions. | |||
| December 31, 2021: | |||
| Cash contributions to pension fund, December 31, 2021 | 395 | ||
| Benefit payments to retirees, December 31, 2021 | 420 | ||
Required:
1. Determine pension expense for 2021.
2. Prepare the
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