Pension data for Barry Financial Services Inc. include the following: ($ in thousands) Discount rate, 6% Expected return on plan assets, 8% Actual return on plan assets, 7% Service cost, 2021 $ 380 January 1, 2021: Projected benefit obligation 2,650 Accumulated benefit obligation 2,350 Plan assets (fair value) 2,750 Prior service cost—AOCI (2021 amortization, $30) 360 Net gain—AOCI (2021 amortization, $8) 400 There were no changes in actuarial assumptions. December 31, 2021: Cash contributions to pension fund, December 31, 2021 315 Benefit payments to retirees, December 31, 2021 340 Required: 1. Determine pension expense for 2021. 2. Prepare the journal entries to record (a) pension expense, (b) gains and losses (if any), (c) funding, and (d) retiree benefits for 2021.
Pension data for Barry Financial Services Inc. include the following: ($ in thousands) Discount rate, 6% Expected return on plan assets, 8% Actual return on plan assets, 7% Service cost, 2021 $ 380 January 1, 2021: Projected benefit obligation 2,650 Accumulated benefit obligation 2,350 Plan assets (fair value) 2,750 Prior service cost—AOCI (2021 amortization, $30) 360 Net gain—AOCI (2021 amortization, $8) 400 There were no changes in actuarial assumptions. December 31, 2021: Cash contributions to pension fund, December 31, 2021 315 Benefit payments to retirees, December 31, 2021 340 Required: 1. Determine pension expense for 2021. 2. Prepare the journal entries to record (a) pension expense, (b) gains and losses (if any), (c) funding, and (d) retiree benefits for 2021.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
Section: Chapter Questions
Problem 4E
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Question
Pension data for Barry Financial Services Inc. include the following:
| ($ in thousands) | |||
| Discount rate, 6% | |||
| Expected return on plan assets, 8% | |||
| Actual return on plan assets, 7% | |||
| Service cost, 2021 | $ | 380 | |
| January 1, 2021: | |||
| Projected benefit obligation | 2,650 | ||
| Accumulated benefit obligation | 2,350 | ||
| Plan assets (fair value) | 2,750 | ||
| Prior service cost—AOCI (2021 amortization, $30) | 360 | ||
| Net gain—AOCI (2021 amortization, $8) | 400 | ||
| There were no changes in actuarial assumptions. | |||
| December 31, 2021: | |||
| Cash contributions to pension fund, December 31, 2021 | 315 | ||
| Benefit payments to retirees, December 31, 2021 | 340 | ||
Required:
1. Determine pension expense for 2021.
2. Prepare the
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