Question
Pension data for Barry Financial Services Inc. include the following: ($ in thousands) Discount rate, 6% Expected return on plan assets, 9% Actual return on
Pension data for Barry Financial Services Inc. include the following:
| ($ in thousands) | |||
| Discount rate, 6% | |||
| Expected return on plan assets, 9% | |||
| Actual return on plan assets, 8% | |||
| Service cost, 2021 | $ | 510 | |
| January 1, 2021: | |||
| Projected benefit obligation | 3,300 | ||
| Accumulated benefit obligation | 3,000 | ||
| Plan assets (fair value) | 3,400 | ||
| Prior service costAOCI (2021 amortization, $35) | 425 | ||
| Net gainAOCI (2021 amortization, $14) | 530 | ||
| There were no changes in actuarial assumptions. | |||
| December 31, 2021: | |||
| Cash contributions to pension fund, December 31, 2021 | 445 | ||
| Benefit payments to retirees, December 31, 2021 | 470 | ||
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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Auditing And Financial Management Federal Information System Controls Audit Manual
Authors: U.S. Government Accountability Office
1st Edition
1289168172, 978-1289168179
