Pension data for Sterling Properties include the following:
| ($ in thousands) |
| Service cost, 2021 | $ | 115 | |
| Projected benefit obligation, January 1, 2021 | | 500 | |
| Plan assets (fair value), January 1, 2021 | | 600 | |
| Prior service cost—AOCI (2021 amortization, $8) | | 83 | |
| Net loss—AOCI (2021 amortization, $1) | | 104 | |
| Interest rate, 7% | | | |
| Expected return on plan assets, 11% | | | |
| Actual return on plan assets, 12% | | | |
|
Required:
Determine pension expense for 2021. (Enter your answers inthousands. Amounts to be deducted should be indicated with a minussign.)
|
| | Pension Expense | | | | | | | | | | | | | | Pension expense | $0 |
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Pension data for Barry Financial Services Inc. include thefollowing:
| ($ in thousands) |
| Discount rate, 6% | | | |
| Expected return on plan assets, 8% | | | |
| Actual return on plan assets, 7% | | | |
| Service cost, 2021 | $ | 380 | |
| January 1, 2021: | | | |
| Projected benefit obligation | | 2,650 | |
| Accumulated benefit obligation | | 2,350 | |
| Plan assets (fair value) | | 2,750 | |
| Prior service cost—AOCI (2021 amortization, $30) | | 360 | |
| Net gain—AOCI (2021 amortization, $8) | | 400 | |
| There were no changes in actuarial assumptions. | | | |
| December 31, 2021: | | | |
| Cash contributions to pension fund, December 31, 2021 | | 315 | |
| Benefit payments to retirees, December 31, 2021 | | 340 | |
|
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.
| Pension Expense | | | | | | | | | | | | | | Pension expense | $0.0 |
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