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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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                                                                                     $           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.

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