Exercise 20-23

Sandhill Co. provides the following information about its postretirement benefit plan for the year 2017.

Service cost $91,900 Prior service cost amortization 2,700 Contribution to the plan 54,600 Actual and expected return on plan assets 58,700 Benefits paid 43,500 Plan assets at January 1, 2017 712,400 Accumulated postretirement benefit obligation at January 1, 2017 763,900 Accumulated OCI (PSC) at January 1, 2017 90,400 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.)

SANDHILL 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.