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 $ 310January 1, 2021:Projected benefit obligation 2,300Accumulated benefit obligation 2,000Plan assets (fair value) 2,400Prior service cost—AOCI (2021 amortization, $25) 325Net gain—AOCI (2021 amortization, $6) 330There were no changes in actuarial assumptions.December 31, 2021:Cash contributions to pension fund, December 31, 2021 245Benefit payments to retirees, December 31, 2021 270 Required:1. Determine pension expense for 2021.2. Prepare the journal entries to record (a) pension expense, (b) gains and losses (if any), (c) funding, and (d) retiree benefits for 2021.
Pension data for Barry Financial Services Inc., include the following:
($ in thousands)
Discount rate, 7%
Expected return on plan assets, 10%
Actual return on plan assets, 9%
Service cost, 2021 $ 310
January 1, 2021:
Projected benefit obligation 2,300
Accumulated benefit obligation 2,000
Plan assets (fair value) 2,400
Prior service cost—AOCI (2021 amortization, $25) 325
Net gain—AOCI (2021 amortization, $6) 330
There were no changes in actuarial assumptions.
December 31, 2021:
Cash contributions to pension fund, December 31, 2021 245
Benefit payments to retirees, December 31, 2021 270
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.
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