Exercise 20-23
Riverbed Co. provides the following information about its postretirement benefit plan for the year 2017.
Service cost | $88,200 | ||
Prior service cost amortization | 2,900 | ||
Contribution to the plan | 51,400 | ||
Actual and expected return on plan assets | 61,900 | ||
Benefits paid | 38,400 | ||
Plan assets at January 1, 2017 | 699,400 | ||
Accumulated postretirement benefit obligation at January 1, 2017 | 756,800 | ||
Accumulated OCI (PSC) at January 1, 2017 | 101,900 | 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.)
RIVERBED CO. |
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General Journal Entries |
Memo Record |
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Items |
Annual Postretirement |
Cash |
OCI—Prior |
Postretirement Asset/ |
APBO |
Plan Assets |
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Balance, Jan. 1, 2017 | $ |
Dr.Cr. |
$ |
Dr.Cr. |
$ |
Dr.Cr. |
$ |
Dr.Cr. |
$ |
Dr.Cr. |
$ |
Dr.Cr. |
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Service cost |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
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Interest cost |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
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Actual return |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
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Contributions |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
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Benefits |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
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Amortization of PSC |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
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Journal entry for 2017 | $ |
Dr.Cr. |
$ |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
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Accumulated OCI, Dec. 31, 2016 |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
Dr.Cr. |
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Balance, Dec. 31, 2017 | $ |
Dr.Cr. |
$ |
Dr.Cr. |
$ |
Dr.Cr. |
$ |
Dr.Cr. |
Exercise 20-23 Riverbed Co. provides the following information about its postretirement benefit plan for the year...
Exercise 20-23 Sunland Co. provides the following information about its postretirement benefit plan for the year 2017. Service cost Prior service cost amortization Contribution to the plan Actual and expected return on plan assets Benefits paid Plan assets at January 1, 2017 Accumulated postretirement benefit obligation at January 1, 2017 Accumulated OCI (PSC) at January 1, 2017 Discount rate $99,000 3,100 56,900 64,700 38,400 711,400 761,000 93,100 Dr. 9% Prepare a worksheet inserting January 1, 2017, balances, showing December 31,...
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