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 $ 370 January 1. 2021: Projected benefit, obligation 2,600 Accumulated benefit obligation 2,300 Plan assets (fair value) 2,700 Prior service cost--AOCI (2021 amortization, $25) 355 Net gain---AOCI (2021 AMORTIZATION, $8) 390 There were no changes in actuarial assumptions. December 31, 2021: Cash contributions to pension fund, December 31, 2021 305 Benefit payments to retirees, December 31, 2021 330 Required: 1. Determine pension expense for 2021. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands rounded to 1 decimal place (i.e., 5,500 should be entered as 5.5).) Pension Expense ________________________ ________ ________________________ ________ ________________________ ________ ________________________ ________ ________________________ ________ ________________________ ________ Pension expense $_______ Required 2 Prepare the journal entries to record (a) pension expense, (b) gains and losses (if any), (c) funding, and (d) retiree benefits for 2021. Journal entry worksheet A. Record the pension expense. B. Record the gain or loss on assets. C. Record the funding. D. Record the retiree benefits.
Pension data for Barry Financial Services Inc. include the following:
($ in thousands)
Discount
Expected return on plan assets, 13%
Actual return on plan assets, 12%
Service cost, 2021 $ 370
January 1. 2021:
Projected benefit, obligation 2,600
Accumulated benefit obligation 2,300
Plan assets (fair value) 2,700
Prior service cost--AOCI (2021 amortization, $25) 355
Net gain---AOCI (2021 AMORTIZATION, $8) 390
There were no changes in actuarial assumptions.
December 31, 2021:
Cash contributions to pension fund, December 31, 2021 305
Benefit payments to retirees, December 31, 2021 330
Required:
1. Determine pension expense for 2021. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands rounded to 1 decimal place (i.e., 5,500 should be entered as 5.5).)
Pension Expense
________________________ ________
________________________ ________
________________________ ________
________________________ ________
________________________ ________
________________________ ________
Pension expense $_______
Required 2
Prepare the journal entries to record (a) pension expense, (b) gains and losses (if any), (c) funding, and (d) retiree benefits for 2021.
A. Record the pension expense.
B. Record the gain or loss on assets.
C. Record the funding.
D. Record the retiree benefits.
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