Question
In: Accounting
Exercise 20-23 Pronghorn Co. provides the following information about its postretirement benefit plan for the year...
Exercise 20-23
Pronghorn Co. provides the following information about its postretirement benefit plan for the year 2017.
|
Service cost |
$89,900 |
||
|
Prior service cost amortization |
3,100 |
||
|
Contribution to the plan |
51,500 |
||
|
Actual and expected return on plan assets |
57,900 |
||
|
Benefits paid |
43,400 |
||
|
Plan assets at January 1, 2017 |
714,600 |
||
|
Accumulated postretirement benefit obligation at January 1, 2017 |
750,400 |
||
|
Accumulated OCI (PSC) at January 1, 2017 |
102,300 |
Dr. |
|
|
Discount rate |
9 |
% |
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.)
|
PRONGHORN CO. |
||||||||||||||||||
|
General Journal Entries |
Memo Record |
|||||||||||||||||
|
Items |
Annual Postretirement |
Cash |
OCI—Prior |
Postretirement Asset/ |
APBO |
Plan Assets |
||||||||||||
|
Balance, Jan. 1, 2017 |
$ |
Dr.Cr. |
$ |
Dr.Cr. |
$ |
Dr.Cr. |
$ |
Dr.Cr. |
$ |
Dr.Cr. |
$ |
Dr.Cr. |
||||||
|
Service cost |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
||||||||||||
|
Interest cost |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
||||||||||||
|
Actual return |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
||||||||||||
|
Contributions |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
||||||||||||
|
Benefits |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
||||||||||||
|
Amortization of PSC |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
||||||||||||
|
Journal entry for 2017 |
$ |
Dr.Cr. |
$ |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
||||||||||
|
Accumulated OCI, Dec. 31, 2016 |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
||||||||||||||
|
Balance, Dec. 31, 2017 |
$ |
Dr.Cr. |
$ |
Dr.Cr. |
$ |
Dr.Cr. |
$ |
Dr.Cr. |
||||||||||
Solutions
Expert Solution
| Pronghorn Co. | ||||||||||||
| Postretirement Benefit Worksheet—2017 | ||||||||||||
| General Journal Entries | Memo Record | |||||||||||
| Items | Annual Postretirement | Cash | OCI—Prior | Postretirement Asset/ | APBO | Plan Assets | ||||||
| Expense | Service Cost | Liability | ||||||||||
| Balance, Jan. 1, 2017 | $ | $ | $ | 35800 | Cr. | 750400 | Cr. | 714600 | Dr. | |||
| Service cost | 89900 | Dr. | 89900 | Cr. | ||||||||
| Interest cost | 67536 | Dr. | 67536 | Cr. | ||||||||
| Actual return | 57900 | Cr. | 57900 | Dr. | ||||||||
| Contributions | 51500 | Cr | 51500 | Dr. | ||||||||
| Benefits | 43400 | Dr. | 43400 | Cr. | ||||||||
| Amortization of PSC | 3100 | Dr. | 3100 | Cr. | ||||||||
| Journal entry for 2017 | 102636 | Dr. | 51500 | Cr. | 3100 | Cr. | 48036 | Cr. | ||||
| Accumulated OCI, Dec. 31, 2016 | 102300 | Dr. | ||||||||||
| Balance, Dec. 31, 2017 | 99200 | Dr. | 83836 | Cr. | 864436 | Cr. | 780600 | Dr. | ||||
| Service Cost | 89900 |
| Interest on Accumu lated Posstretirement Benfit Obligation (9%* $750400) | 67536 |
| Expected Return on Plan Asset | -57900 |
| Amortisation of Prior Service Cost | 3100 |
| Post Retirement Expense | 102636 |
ekkarill92 answered 9 months agoRelated Solutions
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Prior service cost
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Contribution to the plan
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Actual and expected return on plan
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Benefits paid
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Prior
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Contribution to the plan
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Actual and
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Contribution to the plan
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Actual and
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Benefits
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Accumulated postretirement benefit obligation at January 1,
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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
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Accumulated OCI (PSC) at January 1, 2017 100,000 Dr.
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Contribution to the plan 106,900
Prior service cost amortization 9,000
Actual and expected return on plan assets 63,500
Benefits paid 40,100
Plan assets at January 1, 2017 642,500
Projected benefit obligation at January 1, 2017 707,800
Accumulated OCI (PSC) at January 1, 2017 152,900
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Contribution to the plan
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Actual return on plan assets
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Benefits paid
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Net defined benefit liability at January 1, 2020
412,000
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Contribution to the plan
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Past service cost, effective December 31, 2020
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Actual return on plan assets
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Benefits paid
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Net defined benefit liability at January 1, 2020
400,600
Plan assets at January 1, 2020
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Defined benefit obligation at January 1, 2020
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Contribution to the plan
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Prior service cost amortization
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Actual and expected return on plan assets
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Benefits paid
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Plan assets at January 1, 2017
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