Question

In: Accounting

Exercise 17-11 (Static) Components of pension expense; journal entries [LO17-6, 17-7] Pension data for Barry Financial...

Exercise 17-11 (Static) Components of pension expense; journal entries [LO17-6, 17-7]

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.

Solutions

Expert Solution


ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Problem 17-12 Determine pension expense; journal entries; two years [LO17-3, 17-4, 17-5, 17-6, 17-7, 17-8] The...
Problem 17-12 Determine pension expense; journal entries; two years [LO17-3, 17-4, 17-5, 17-6, 17-7, 17-8] The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal years 2018 and 2019 are presented below ($ in millions): Information Provided by Pension Plan Actuary: Projected benefit obligation as of December 31, 2017 = $3,950. Prior service cost from plan amendment on January 2, 2018 = $850 (straight-line amortization for 10-year average remaining service period). Service cost for 2018 =...
Problem 17-12 Determine pension expense; journal entries; two years [LO17-3, 17-4, 17-5, 17-6, 17-7, 17-8] The...
Problem 17-12 Determine pension expense; journal entries; two years [LO17-3, 17-4, 17-5, 17-6, 17-7, 17-8] The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal years 2018 and 2019 are presented below ($ in millions): Information Provided by Pension Plan Actuary: Projected benefit obligation as of December 31, 2017 = $1,850. Prior service cost from plan amendment on January 2, 2018 = $550 (straight-line amortization for 10-year average remaining service period). Service cost for 2018 =...
Exercise 17-19 (Algo) Record pension expense, funding, and gains and losses; determine account balances [LO17-6, 17-7,...
Exercise 17-19 (Algo) Record pension expense, funding, and gains and losses; determine account balances [LO17-6, 17-7, 17-8] Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2021 (the end of Beale's fiscal year), the following pension-related data were available: Projected Benefit Obligation ($ in millions) Balance, January 1, 2021 $ 520 Service cost 54 Interest cost, discount rate, 5% 26 Gain due to changes in actuarial assumptions in 2021 (10 ) Pension benefits paid (26 ) Balance,...
Problem 17-6 Determine the PBO; plan assets; pension expense; two years [LO17-3, 17-4, 17-6] Stanley-Morgan Industries...
Problem 17-6 Determine the PBO; plan assets; pension expense; two years [LO17-3, 17-4, 17-6] Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2018. The provisions of the plan were not made retroactive to prior years. A local bank, engaged as trustee for the plan assets, expects plan assets to earn a 10% rate of return. A consulting firm, engaged as actuary, recommends 6% as the appropriate discount rate. The service cost is $250,000 for 2018 and $360,000...
Problem 17-6 Determine the PBO; plan assets; pension expense; two years [LO17-3, 17-4, 17-6] Stanley-Morgan Industries...
Problem 17-6 Determine the PBO; plan assets; pension expense; two years [LO17-3, 17-4, 17-6] Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2018. The provisions of the plan were not made retroactive to prior years. A local bank, engaged as trustee for the plan assets, expects plan assets to earn a 10% rate of return. The actual return was also 10% in 2018 and 2019.* A consulting firm, engaged as actuary, recommends 4% as the appropriate discount...
Exercise 17-25 Postretirement benefits; determine APBO, service cost, interest cost; prepare journal entry [LO17-10, 17-11] The...
Exercise 17-25 Postretirement benefits; determine APBO, service cost, interest cost; prepare journal entry [LO17-10, 17-11] The following data are available pertaining to Household Appliance Company's retiree health care plan for 2018: Number of employees covered 2 Years employed as of January 1, 2018 2 [each] Attribution period 25 years Expected postretirement benefit obligation, Jan. 1 $ 63,000 Expected postretirement benefit obligation, Dec. 31 $ 66,000 Interest rate 5 % Funding none Required: 1. What is the accumulated postretirement benefit obligation...
Problem 17-16 (Static) Comprehensive—reporting a pension plan; pension spreadsheet; determine changes in balances; two years [LO17-3,...
Problem 17-16 (Static) Comprehensive—reporting a pension plan; pension spreadsheet; determine changes in balances; two years [LO17-3, 17-4, 17-5, 17-6, 17-7, 17-8] Skip to question [The following information applies to the questions displayed below.] Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2021: Prior service cost at Jan. 1, 2021, from plan amendment at the beginning of 2019 (amortization: $4 million per year) $ 32 million Net loss-pensions at Jan.1, 2021...
Problem 17-16 (Static) Comprehensive—reporting a pension plan; pension spreadsheet; determine changes in balances; two years [LO17-3,...
Problem 17-16 (Static) Comprehensive—reporting a pension plan; pension spreadsheet; determine changes in balances; two years [LO17-3, 17-4, 17-5, 17-6, 17-7, 17-8] Skip to question [The following information applies to the questions displayed below.] Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2021: Prior service cost at Jan. 1, 2021, from plan amendment at the beginning of 2019 (amortization: $4 million per year) $ 32 million Net loss-pensions at Jan.1, 2021...
Problem 17-16 (Static) Comprehensive—reporting a pension plan; pension spreadsheet; determine changes in balances; two years [LO17-3,...
Problem 17-16 (Static) Comprehensive—reporting a pension plan; pension spreadsheet; determine changes in balances; two years [LO17-3, 17-4, 17-5, 17-6, 17-7, 17-8] Skip to question [The following information applies to the questions displayed below.] Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2021: Prior service cost at Jan. 1, 2021, from plan amendment at the beginning of 2019 (amortization: $4 million per year) $ 32 million Net loss-pensions at Jan.1, 2021...
Pension data for Barry Financial Services Inc. include the following: ($ in thousands) Discount rate, 7%...
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 $ 460 January 1, 2021: Projected benefit obligation 3,050 Accumulated benefit obligation 2,750 Plan assets (fair value) 3,150 Prior service cost—AOCI (2021 amortization, $40) 400 Net gain—AOCI (2021 amortization, $12) 480 There were no changes in actuarial assumptions. December 31, 2021: Cash contributions to pension fund, December 31, 2021...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT