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 costAOCI (2021 amortization, $25)		325
Net gainAOCI (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.

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 costAOCI (2021 amortization, $25)		325
Net gainAOCI (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.