Question

Sunland Co. provides the following information about its postretirement benefit plan for the year 2020. Service...

Sunland Co. provides the following information about its postretirement benefit plan for the year 2020.
Service cost $49,500
Contribution to the plan 9,000
Actual and expected return on plan assets 10,500
Benefits paid 20,900
Plan assets at January 1, 2020 112,700
Accumulated postretirement benefit obligation at January 1, 2020 309,400
Discount rate 10 %
Prepare a worksheet inserting January 1, 2020, balances, and showing December 31, 2020, balances. (Enter all amounts as positive.)

Sunland Co.
Pension Worksheet—2020

General Journal Entries

Memo Record

Annual Postretirement
Expense

Cash

Postretirement Asset/
Liability

APBO

Plan Assets

Balance, Jan. 1, 2020 $

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$

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$

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$

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$

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Service cost

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Interest cost

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Actual return

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Contributions

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Benefits

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Journal entry for 2020 $

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$

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Balance, Dec. 31, 2020 $

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$

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$

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SHOW LIST OF ACCOUNTS

Prepare the journal entry recording postretirement benefit expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation

Debit

Credit

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