Pension data for Barry Financial Services Incorporated include the following: ($ in thousands) Discount rate, 7%...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Pension data for Barry Financial Services Incorporated include the following: ($ in thousands) Discount rate, 7% Expected return on plan assets, 8% Actual return on plan assets, 7% Service cost, 2024 January 1, 2024: Projected benefit obligation Accumulated benefit obligation Plan assets (fair value) Prior service cost- AOCI (2024 amortization, $30) Net gain- AOCI (2024 amortization, $12) There were no changes in actuarial assumptions. December 31, 2024: Benefit payments to retirees, December 31, 2024 Cash contributions to pension fund, December 31, 2024 $ 500 3,250 2,950 3,350 420 520 435 460 Required: 1. Determine pension expense for 2024. 2. Prepare the journal entries to record (a) pension expense, (b) gains and losses (if any), (c) funding, and (d) retiree benefits for 2024. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required Required 1 2 Prepare the journal entries to record (a) pension expense, (b) gains and losses (if any), (c) funding, and (d) retiree benefits for 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in thousands rounded to 1 decimal place (i.e., 5,500 should be entered as 5.5). Show less Credit No 1 Transaction General Journal 1 Pension expense Plan assets Amortization of net gain - OCI Amortization of prior service cost - OCI PBO 2 2 Loss - OCI Plan assets Debit 1,037 EX) 268.0 12.0 30.0 1,287.5 33.5 33.5 Required: 1. Determine pension expense for 2024. 2. Prepare the journal entries to record (a) pension expense, (b) gains and losses (if any), (c) funding, and (d) retiree benefits for 2024. > Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required Required 1 2 Prepare the journal entries to record (a) pension expense, (b) gains and losses (if any), (c) funding, and (d) retiree benefits for 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in thousands rounded to 1 decimal place (i.e., 5,500 should be entered as 5.5). No Transaction General Journal 1 1 Pension expense Plan assets Show less Credit Debit 1,037 Ex 268.0 Amortization of net gain - OCI Amortization of prior service cost - OCI PBO 12.0 30.0 1,287.5X) 2 2 Loss - OCI Plan assets 3 33.5 33.5 3 3 Plan assets 435.0 Cash 435.0 4 4 PBO 460.0 Plan assets 460.0 < Required 1 Required 2 > Required: 1. Determine pension expense for 2024. 2. Prepare the journal entries to record (a) pension expense, (b) gains and losses (if any), (c) funding, and (d) retiree benefits for 2024. Answer is compiete put not entirely correct. Complete this question by entering your answers in the tabs below. Required Required 1 2 Determine pension expense for 2024. Note: 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 Service cost $ 500.0 Interest cost 227.5 Expected return on plan 268.0X assets Amortization of prior service 30.0 cost Amortization of net gain 12.0x $ Pension expense 1,037.5 < Required 1 Required 2 > Show less Pension data for Barry Financial Services Incorporated include the following: ($ in thousands) Discount rate, 7% Expected return on plan assets, 8% Actual return on plan assets, 7% Service cost, 2024 January 1, 2024: Projected benefit obligation Accumulated benefit obligation Plan assets (fair value) Prior service cost- AOCI (2024 amortization, $30) Net gain- AOCI (2024 amortization, $12) There were no changes in actuarial assumptions. December 31, 2024: Benefit payments to retirees, December 31, 2024 Cash contributions to pension fund, December 31, 2024 $ 500 3,250 2,950 3,350 420 520 435 460 Required: 1. Determine pension expense for 2024. 2. Prepare the journal entries to record (a) pension expense, (b) gains and losses (if any), (c) funding, and (d) retiree benefits for 2024. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required Required 1 2 Prepare the journal entries to record (a) pension expense, (b) gains and losses (if any), (c) funding, and (d) retiree benefits for 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in thousands rounded to 1 decimal place (i.e., 5,500 should be entered as 5.5). Show less Credit No 1 Transaction General Journal 1 Pension expense Plan assets Amortization of net gain - OCI Amortization of prior service cost - OCI PBO 2 2 Loss - OCI Plan assets Debit 1,037 EX) 268.0 12.0 30.0 1,287.5 33.5 33.5 Required: 1. Determine pension expense for 2024. 2. Prepare the journal entries to record (a) pension expense, (b) gains and losses (if any), (c) funding, and (d) retiree benefits for 2024. > Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required Required 1 2 Prepare the journal entries to record (a) pension expense, (b) gains and losses (if any), (c) funding, and (d) retiree benefits for 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in thousands rounded to 1 decimal place (i.e., 5,500 should be entered as 5.5). No Transaction General Journal 1 1 Pension expense Plan assets Show less Credit Debit 1,037 Ex 268.0 Amortization of net gain - OCI Amortization of prior service cost - OCI PBO 12.0 30.0 1,287.5X) 2 2 Loss - OCI Plan assets 3 33.5 33.5 3 3 Plan assets 435.0 Cash 435.0 4 4 PBO 460.0 Plan assets 460.0 < Required 1 Required 2 > Required: 1. Determine pension expense for 2024. 2. Prepare the journal entries to record (a) pension expense, (b) gains and losses (if any), (c) funding, and (d) retiree benefits for 2024. Answer is compiete put not entirely correct. Complete this question by entering your answers in the tabs below. Required Required 1 2 Determine pension expense for 2024. Note: 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 Service cost $ 500.0 Interest cost 227.5 Expected return on plan 268.0X assets Amortization of prior service 30.0 cost Amortization of net gain 12.0x $ Pension expense 1,037.5 < Required 1 Required 2 > Show less
Expert Answer:
Answer rating: 100% (QA)
Required 1 Determine pension expense for 2024 Pension expense for 2024 can be calculated using the f... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
Posted Date:
Students also viewed these finance questions
-
Two different airlines have a flight form San Francisco to New York that departs each week day morning at a certain time. There is a 70% chance that the first airlines flight is fully booked on a...
-
Solve each system. If a system is inconsistent or has dependent equations, say so. -5x + 2y = -4 6x + 3y = -6
-
Most business decisions involve the evaluation of alternative courses of action. For example, a marketing manager may be responsible for choosing a strategy for establishing sales in new geographical...
-
Medical technology has an impact on quality of care, quality of life, healthcare costs, access, the structures and processes of the health care delivery, global medical practice, and bioethics. Which...
-
Discuss the physical meaning of the small-signal circuit parameter \(r_{o}\).
-
Grady Enterprises manufactures three computer games. They are called Rising Star, Ghost Master, and Road Warrior. The product line data are as follows: The current production capacity is 110,000...
-
Litho-Print is considering two possible capital structures, A and B, shown in the following table. Assume a 40% tax rate. Structure B $79,000 at 15.3% coupon rate Source of capital Long-term debt...
-
An airplane traveling 400 mph at a cruising altitude of 6.6 mi begins its descent. If the angle of descent is 2 from the horizontal, determine the new altitude after 15 minutes. Round to the nearest...
-
A utility is submitting their petition to their regulatory agency to justify rates for the upcoming year. Their proposal is based upon revenue requirements. The company has 45 percent of their...
-
Consider year 7 of a utility company's financial results. The company pays income tax of \(\$ 7,112,000\), where the tax rate is 40 percent. Debt is \(\$ 100,000,000\) and the interest rate on debt...
-
Let \(d X_{t}=\theta d t+\sigma \sqrt{X_{t}} d W_{t}, X_{0}>0\), where \(\theta>0\) and, for \(a
-
Consider a capital budgeting formulation where the binary variables \(x_{1}\) and \(x_{2}\) are used to represent the acceptance \(\left(x_{i}=1 ight)\) or rejection \(\left(x_{i}=0 ight)\) of each...
-
Compute the transition probability for an OU process.
-
Why are the doctor and priest hesitant to bury Ophelia in holy ground? How do Gertrude, laertes, Claudius, and hamlet die? What ruler shows up in the final act to discover all the dead bodies? You...
-
we have to compute the letter grades for a course. The data is a collection of student records stored in a file. Each record consists of a name(up to 20 characters), ID (8 characters), the scores of...
-
Show that the stream function for flow in the corner of Figure P9.16 is given by: \[\psi(r, \theta)=A r^{4} \sin (4 \theta)\] Use the transformation \(z=w^{4}\) where \(z=x+i y\) and \(w=\phi+i...
-
Consider the flow formed by placing a source of strength, \(q_{o}\), a distance, \(d\), from an infinitely long wall as shown in Figure P9.18. The velocity potential for this incompressible and...
-
Using the transformation \(w=\sin (z)\), determine the equation for the stream function for flow inside the semi-infinite region \(y \geq 0,-\pi / 2 \leq x \leq \pi / 2\) shown in Figure P9.17. -/2...
Study smarter with the SolutionInn App