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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.

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ekkarill92 answered 3 years ago
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