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In: Accounting

Vaughn Co. provides the following information about its postretirement benefit plan for the year 2017. Service...

Vaughn Co. provides the following information about its postretirement benefit plan for the year 2017.

Service cost $83,900
Prior service cost amortization 3,100
Contribution to the plan 51,000
Actual and expected return on plan assets 67,100
Benefits paid 42,700
Plan assets at January 1, 2017 697,300
Accumulated postretirement benefit obligation at January 1, 2017 756,400
Accumulated OCI (PSC) at January 1, 2017 103,300 Dr.
Discount rate 8 %


Prepare a worksheet inserting January 1, 2017, balances, showing December 31, 2017, balances, and the journal entry recording postretirement benefit expense. (Enter all amounts as positive.)

VAUGHN CO.
Postretirement Benefit Worksheet—2017

General Journal Entries

Memo Record

Items

Annual Postretirement
Expense

Cash

OCI—Prior
Service Cost

Postretirement Asset/
Liability

APBO

Plan Assets

Solutions

Expert Solution

Pension Worksheet - complete Journal entry from --- Remember point to note that at the end closing balance of  " post retirement ( Asset / Liability ) should be equal to Difference of Projected Benefit Obligation - Plan Assets .

Vaughn Co provides
Pension Worksheet- 2017
General Journal Entries Memo Record
Details Annual Post retire Expense $ Cash $ OCI _ prior Service cost Post retirement Asset ( Liability)$ Projected Benefit obligation-$ Plan Assets -$
Opening Balance       59,100 cr         7,56,400 cr 6,97,300 Dr ($59100= ( $756400-$697300)
Service Cost       83,900 Dr            83,900 cr
Interest Cost( wn1)       60,512 Dr            60,512 cr
Actual return       67,100 cr       67,100 dr
Contribution       51,000 cr       51,000 dr
Benefit            42,700 dr       42,700 cr
Amortization         3,100 Dr          3,100 cr
Journal Entry 2017       80,412 Dr       51,000 Cr          3,100 Cr       26,312 Cr
Accumulated OCI( PSC) Opening Bal    1,03,300 Dr
Closing balance as on 31st Dec 2017    1,00,200 Dr       85,412 Cr         8,58,112 Cr 7,72,700 Dr
wn1 Amount ($)
Service Cost       83,900
Interest on accumulated Post retirement
benefit obligation-8%*756400-$60512       60,512
Expected return on Plan asset     -67,100
Amortization - service cost         3,100
Post retirement Expenses       80,412

ekkarill92 answered 2 years ago
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