In: Accounting
E20-22
Englehart Co. provides the following information about its postretirement benefit plan for the year 2017.
Service Cost $90,000
Prior service cost and amortization 3,000
Contribution to the plan 56,000
Actual and expected return on plan assets 62,000
Benefits paid 40,000
Plan assets at January 1, 2017 710,000
Accumulated postretirement benefit obligation
at January 1, 2017 760,000
Accumulated OCI (PSC) at January 1, 2017 100,000 Dr.
Discount rate 9%
Instructions
Compute the postretirement benefit expense for 2017.
E20-23
Using the information in E20-22, prepare a worksheet inserting January 1, 2017, balances, showing December 31,2017, balances, and the journal entry recording postretirement benefit expense.