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Exercise 20-23 Sunland Co. provides the following information about its postretirement benefit plan for the year 2017. Servic

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Computation of pension expense:

Service cost..............................................................$ 99,000

Interest cost ($761,000 X 9%)...............................68,490

Expected return on plan assets............................. (64,700)

Prior service cost amortization.............................. 3,100

Pension expense for 2010.......................................$105,890

Sunland company

Postretirement Benefit Worksheet

JOURNAL ENTRIES MEMO RECORD
ITEMS ANNUAL POSTRETIREMENT EXPENSE CASH OCI PRIOR SERVICE COST POSTRETIREMENT ASSET / LIABILITY APBO PLAN ASSETS
BALANCE , JAN 1, 2017 49,600 CR 761,000 CR 711,400 DR
SERVICE COST 99,000 DR 99,000 CR
INTEREST COST *

68,490 DR

68,490 CR
ACTUAL RETURN** 64,700 CR 64,700 DR
AMORTIZATION OF PSC 3,100 DR 3,100 CR
CONTRIBUTION 56,900 CR 56,900 DR
BENEFITS 38,400 DR 38,400 CR
JOURNAL ENTRY FOR 2017*** 105,890 DR 56,900 CR 3,100 CR 45,890 CR
ACCUMULATED OCI, DEC 31 2016 93,100 DR
BAL DEC .31, 2017 90,000 DR 95,490 CR 890,090 CR 794,600 DR

* 68,490 = 761000*9%

***Pension Expense..........................................................105,890

***Pension Asset/Liability.................................................45,890

Other Comprehensive Income (PSC)....................3,100

Cash..............................................................56,900

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