Vaughn Foods Inc. sponsors a postretirement medical and dental benefit plan for its employees. The following balances relate to this plan on January 1, 2017.

Plan assets		$198,100
Expected postretirement benefit obligation		836,000
Accumulated postretirement benefit obligation		198,100
No prior service costs or OCI balances exist.

As a result of the plans operation during 2017, the following additional data are provided by the actuary.

Service cost is $70,100

Discount rate is 10%

Contributions to plan are $61,200

Expected return on plan assets is $10,100

Actual return on plan assets is $14,800

Benefits paid to employees are $43,300

Average remaining service to full eligibility: 20 years

Using the preceding data, compute the net periodic postretirement benefit cost for 2017 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

VAUGHN FOODS INC. Postretirement Benefit Worksheet2017

General Journal Entries

Memo Record

Items

Annual Post Retirement Expense

Cash

OCIGain/ Loss

Postretirement Asset/ Liability

APBO

Plan Assets

Balance Jan 1, 2017

Service Cost

Interest Cost

Actual Return

Unexpected Gain

Contributions

Benefits

Journal Entry for 2017

Accumulated OCI, Dec. 31, 2016

Balance Dec. 31, 2017