The accounting staff of Holder Inc. has prepared the following postretirement benefit worksheet. Unfortunately, several entries in the worksheet are not decipherable. The company has asked your assistance in completing the worksheet and completing the accounting tasks related to the pension plan for 2015.

Instructions

(a) Determine the missing amounts in the 2015 postretirement worksheet, indicating whether the amounts are debits or credits.

(b) Prepare the journal entry to record 2015 postretirement expense for Holder Inc.

(c) What discount rate is Holder using in accounting for the interest on its other postretirement benefit plan? Explain.

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P18 Homo Int Postretirement Benefit Worksheet-Holder Inc.xls Page Layout Formulas Data Review View A B C 123456 Items Annual Expense General Journal Entries Other Comprehensive Postretirement E F G Memo Record Cash Income (G/L) Asset/Liability DPBO Plan Assets 6 Balance, Jan. 1, 2015 290,000 410,000 120,000 7 Service cost 8 Interest expense 9 Interest revenue 10 Contributions 11 Benefits (1) 56,000 (3) 25 (2) 36,900 10,800 66,000 (4) 5,000 5,000 12 Asset loss 8,800 (5) 13 Journal entry for 2015 (6) (7) (8) (9) 14 15 Accumulated OCI, Dec. 31, 2014 18,200 Dr. 16 Balance, Dec. 31, 2015 27,000 Dr. 314,900 Cr. 497,900 Cr. 183,000 Dr. 17