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In: Accounting

Pension data for Sterling Properties include the following: ($ in thousands) Service cost, 2021 $ 115...

Pension data for Sterling Properties include the following:

($ in thousands)
Service cost, 2021 $ 115
Projected benefit obligation, January 1, 2021 500
Plan assets (fair value), January 1, 2021 600
Prior service cost—AOCI (2021 amortization, $8) 83
Net loss—AOCI (2021 amortization, $1) 104
Interest rate, 7%
Expected return on plan assets, 11%
Actual return on plan assets, 12%


Required:
Determine pension expense for 2021. (Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.)

Pension Expense
Pension expense $0

Pension data for Barry Financial Services Inc. include the following:

($ in thousands)
Discount rate, 6%
Expected return on plan assets, 8%
Actual return on plan assets, 7%
Service cost, 2021 $ 380
January 1, 2021:
Projected benefit obligation 2,650
Accumulated benefit obligation 2,350
Plan assets (fair value) 2,750
Prior service cost—AOCI (2021 amortization, $30) 360
Net gain—AOCI (2021 amortization, $8) 400
There were no changes in actuarial assumptions.
December 31, 2021:
Cash contributions to pension fund, December 31, 2021 315
Benefit payments to retirees, December 31, 2021 340


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 Expense
Pension expense $0.0

Solutions

Expert Solution

ekkarill92 answered 1 year ago
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