Question
Pension data for Barry Financial Services Inc. include the following: ($ in thousands) Discount rate, 7% Expected return on plan assets, 11% Actual return on
Pension data for Barry Financial Services Inc. include the following:
| ($ in thousands) | ||
Discount rate, 7% |
|
|
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Expected return on plan assets, 11% |
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Actual return on plan assets, 10% |
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Service cost, 2021 | $ | 410 |
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January 1, 2021: |
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|
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Projected benefit obligation |
| 2,800 |
|
Accumulated benefit obligation |
| 2,500 |
|
Plan assets (fair value) |
| 2,900 |
|
Prior service costAOCI (2021 amortization, $45) |
| 375 |
|
Net gainAOCI (2021 amortization, $10) |
| 430 |
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There were no changes in actuarial assumptions. |
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December 31, 2021: |
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|
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Cash contributions to pension fund, December 31, 2021 |
| 345 |
|
Benefit payments to retirees, December 31, 2021 |
| 370 |
|
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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