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Pension data for Barry Financial Services Inc. include the following: ($ in thousands) Discount rate, 7% Expected return on plan assets, 8% Actual return on
Pension data for Barry Financial Services Inc. include the following:
| ($ in thousands) | |||
| Discount rate, 7% | |||
| Expected return on plan assets, 8% | |||
| Actual return on plan assets, 7% | |||
| Service cost, 2021 | $ | 500 | |
| January 1, 2021: | |||
| Projected benefit obligation | 3,250 | ||
| Accumulated benefit obligation | 2,950 | ||
| Plan assets (fair value) | 3,350 | ||
| Prior service costAOCI (2021 amortization, $30) | 420 | ||
| Net gainAOCI (2021 amortization, $12) | 520 | ||
| There were no changes in actuarial assumptions. | |||
| December 31, 2021: | |||
| Cash contributions to pension fund, December 31, 2021 | 435 | ||
| Benefit payments to retirees, December 31, 2021 | 460 | ||
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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