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Exercise 17-11 (Algo) Components of pension expense; journal entries [LO17-6, 17-7] Pension data for Barry Financial Services Inc. include the following: ($ in thousands) Discount
Exercise 17-11 (Algo) 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, 12% | |||
Actual return on plan assets, 11% | |||
Service cost, 2021 | $ | 480 | |
January 1, 2021: | |||
Projected benefit obligation | 3,150 | ||
Accumulated benefit obligation | 2,850 | ||
Plan assets (fair value) | 3,250 | ||
Prior service costAOCI (2021 amortization, $50) | 410 | ||
Net gainAOCI (2021 amortization, $12) | 500 | ||
There were no changes in actuarial assumptions. | |||
December 31, 2021: | |||
Cash contributions to pension fund, December 31, 2021 | 415 | ||
Benefit payments to retirees, December 31, 2021 | 440 | ||
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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