Pension data for Barry Financial Services Incorporated include the following:Discount rate, 7%Expected return on plan assets, 12%Actual return on plan assets, 11%Service cost, 2024January 1, 2024:Projected benefit obligationAccumulated benefit obligationPlan assets (fair value)Prior service cost- AOCI (2024 amortization, $50)Net gain- AOCI (2024 amortization, $12)There were no changes in actuarial assumptions.Complete this question by entering your answers in the tabs below.Required 1 Required 2December 31, 2024:Cash contributions to pension fund, December 31, 2024Benefit payments to retirees, December 31, 2024Required:1. Determine pension expense for 2024.2. Prepare the journal entries to record (a) pension expense, (b) gains and losses (if any), (c) funding, and (d) retiree benefits for 2024.Pension expense($ in thousands)$$ 4800.03,1502,8503,250410500Determine pension expense for 2024.Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands rounded to 1 decimalplace (i.e., 5,500 should be entered as 5.5).Pension Expense415440

Pension expense is the cost that a firm records in its financial accounts for employee pension…

Answered: 1. Determine pension expense for 2024.…

1. Determine pension expense for 2024. 2. Prepare the journal entries to record (a) pension expense, (b) gains and losses (if any), (c) funding, and (d) retiree benefits for 2024.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Pension data for Barry Financial Services Incorporated include the following:
Discount rate, 7%
Expected return on plan assets, 12%
Actual return on plan assets, 11%
Service cost, 2024
January 1, 2024:
Projected benefit obligation
Accumulated benefit obligation
Plan assets (fair value)
Prior service cost- AOCI (2024 amortization, $50)
Net gain- AOCI (2024 amortization, $12)
There were no changes in actuarial assumptions.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
December 31, 2024:
Cash contributions to pension fund, December 31, 2024
Benefit payments to retirees, December 31, 2024
Required:
1. Determine pension expense for 2024.
2. Prepare the journal entries to record (a) pension expense, (b) gains and losses (if any), (c) funding, and (d) retiree benefits for 2024.
Pension expense
($ in thousands)
$
$ 480
0.0
3,150
2,850
3,250
410
500
Determine pension expense for 2024.
Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands rounded to 1 decimal
place (i.e., 5,500 should be entered as 5.5).
Pension Expense
415
440

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