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I need assistance with the attached problem. It is attached Problem 20-13 Hollenbeck Foods Inc. sponsors a postretirement medical and dental benefit plan for its
I need assistance with the attached problem. It is attached
Problem 20-13 Hollenbeck Foods Inc. sponsors a postretirement medical and dental benefit plan for its employees. The following balances relate to this plan on January 1, 2014. Plan assets Expected postretirement benefit obligation Accumulated postretirement benefit obligation No prior service costs exist. $202,300 826,300 202,300 As a result of the plan's operation during 2014, the following additional data are provided by the actuary. Service cost for 2014 is $74,730 Discount rate is 10% Contributions to plan are $65,430 Expected return on plan assets is $10,270 Actual return on plan assets is $15,910 Benefits paid to employees are $45,900 Average remaining service to full eligibility: 20 years Using the preceding data, compute the net periodic postretirement benefit cost for 2014 by preparing a worksheet that shows the journal entry for postretirement expense and the year-end balances in the related postretirement benefit memo accounts. (Assume that contributions and benefits are paid at the end of the year.) HOLLENBECK FOODS INC. Postretirement Benefit Worksheet2014 General Journal Entries Items Balanc e, Jan. 1, 2014 Service cost Interest cost Actual return Unexpe cted gain Contrib utions Benefit s Annual Postretireme nt Expense $ Cash $ OCIGain/ Loss $ Postretireme nt Asset/ Liability $ Memo Record APBO $ Plan Assets $ Journal entry for 2014 Accum ulated OCI, Dec. 31, 2013 Balanc e, Dec. 31, 2014 $ $ $ $ $ Prepare any journal entries related to the postretirement plan for 2014 and indicate the postretirement amounts reported in the financial statements for 2014. Account Titles and Explanation Debit Credit HOLLENBECK FOODS INC. Partial Income Statement For the year ended December 31, 2014 $ HOLLENBECK FOODS INC. Comprehensive Income Statement For the year ended December 31, 2014 $XXXX $ $XXXX HOLLENBECK FOODS INC. Partial Balance Sheet December 31, 2014 $ $ Click if you would like to Show Work for this question: Open Show WorkStep by Step Solution
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