Pension data for Barry Financial Services Inc. include the following: ($ in thousands) Discount rate, 7% Expected return on plan assets, 13% Actual return on plan assets, 12% Service cost, 2021 $ 430 January 1, 2021: Projected benefit obligation 2,900 Accumulated benefit obligation 2,600 Plan assets (fair value) 3,000 Prior service cost—AOCI (2021 amortization, $25) 385 Net gain—AOCI (2021 amortization, $10) 450 There were no changes in actuarial assumptions. December 31, 2021: Cash contributions to pension fund, December 31, 2021 365 Benefit payments to retirees, December 31, 2021 390 Required: 1. Determine pension expense for 2021. 2. Prepare the journal entries to record (a) pension expense, (b) gains and losses (if any), (c) funding, and (d) retiree benefits for 2021.
Pension data for Barry Financial Services Inc. include the following: ($ in thousands) Discount rate, 7% Expected return on plan assets, 13% Actual return on plan assets, 12% Service cost, 2021 $ 430 January 1, 2021: Projected benefit obligation 2,900 Accumulated benefit obligation 2,600 Plan assets (fair value) 3,000 Prior service cost—AOCI (2021 amortization, $25) 385 Net gain—AOCI (2021 amortization, $10) 450 There were no changes in actuarial assumptions. December 31, 2021: Cash contributions to pension fund, December 31, 2021 365 Benefit payments to retirees, December 31, 2021 390 Required: 1. Determine pension expense for 2021. 2. Prepare the journal entries to record (a) pension expense, (b) gains and losses (if any), (c) funding, and (d) retiree benefits for 2021.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Pension data for Barry Financial Services Inc. include the following:
| ($ in thousands) | |||
| Discount rate, 7% | |||
| Expected return on plan assets, 13% | |||
| Actual return on plan assets, 12% | |||
| Service cost, 2021 | $ | 430 | |
| January 1, 2021: | |||
| Projected benefit obligation | 2,900 | ||
| Accumulated benefit obligation | 2,600 | ||
| Plan assets (fair value) | 3,000 | ||
| Prior service cost—AOCI (2021 amortization, $25) | 385 | ||
| Net gain—AOCI (2021 amortization, $10) | 450 | ||
| There were no changes in actuarial assumptions. | |||
| December 31, 2021: | |||
| Cash contributions to pension fund, December 31, 2021 | 365 | ||
| Benefit payments to retirees, December 31, 2021 | 390 | ||
Required:
1. Determine pension expense for 2021.
2. Prepare the
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