Question
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
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. Postretirement Benefit Worksheet2017 | ||||||||||||||||||
| General Journal Entries | Memo Record | |||||||||||||||||
| Items | Annual Postretirement Expense | Cash | OCIPrior Service Cost | Postretirement Asset/ Liability | 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. | ||||||||||
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