Question
Exercise 17-11 Components of pension expense; journal entries [LO17-6,17-7] Pension data for Barry Financial Services Inc. include the following: ($ in 000s) Discount rate, 7%
Exercise 17-11 Components of pension expense; journal entries [LO17-6,17-7] Pension data for Barry Financial Services Inc. include the following: ($ in 000s) Discount rate, 7% Expected return on plan assets, 12% Actual return on plan assets, 11% Service cost, 2016 $ 420 January 1, 2016: Projected benefit obligation 2,850 Accumulated benefit obligation 2,550 Plan assets (fair value) 2,950 Prior service costAOCI (2016 amortization, $50) 380 Net gainAOCI (2016 amortization, $10) 440 There were no changes in actuarial assumptions. December 31, 2016: Cash contributions to pension fund, December 31, 2016 355 Benefit payments to retirees, December 31, 2016 380 Required: 1. Determine pension expense for 2016. (Amounts to be deducted should be indicated with a minus sign.) 2. Prepare the journal entries to record pension expense, gains and losses (if any), funding, and retiree benefits for 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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