Question

Exercise 20-23 Marin Co. provides the following information about its postretirement benefit plan for the year 2017. Service cost $92,500 Prior service cost amortization 3,300 Contribution to the plan 50,500 Actual and expected return on plan assets 60,500 Benefits paid 37,700 Plan assets at January 1, 2017 715,700 Accumulated postretirement benefit obligation at January 1, 2017 775,100 Accumulated OCI (PSC) at January 1, 2017 107,100 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.) MARIN CO. Postretirement Benefit Worksheet—2017 General Journal Entries Memo Record Items Annual Postretirement Expense Cash OCI—Prior Service Cost Postretirement Asset/ Liability APBO Plan Assets Balance, Jan. 1, 2017 $ $ $ $ $ $ Service cost Interest cost Actual return Contributions Benefits Amortization of PSC Journal entry for 2017 $ $ Accumulated OCI, Dec. 31, 2016 Balance, Dec. 31, 2017 $ $ $ $ Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT Question Attempts: 0 of 3 used SAVE FOR LATER SUBMIT ANSWER

Answer 1

Service cost	$92,500
Interest on accumulated postretirement benefit obligation	$69,759
($775,100 × 9%)
Expected return on plan assets	($60,500)
Amortization of prior service cost	$3,300
Postretirement expense	$105,059

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Marine Co.
Postretirement Benefit Worksheet—2017
	General Journal Entries						Memo Record
Items	Annual Postretirement		Cash	OCI—Prior	Postretirement Asset/		APBO	Plan Assets
	Expense			Service Cost	Liability
Balance, Jan. 1, 2017	$		$	$	$59400 Cr.		775100 Cr.	715700 Dr.
Service cost	92500 Dr.						$92500 Cr.
Interest cost	$69759 Dr.						$69759 Cr.
Actual return	$60500 Cr.							$60500 Dr.
Contributions			$50500 Cr.					$50500 Dr.
Benefits							$37700 Dr.	$37700 Cr.
Amortization of PSC	$3300 Dr.			$3300 Cr.
Journal entry for 2017	$105059 Dr.		$50500 Cr.	$3300 Cr.	$51259 Cr.
Accumulated OCI, Dec. 31, 2016				$107100 Dr.
Balance, Dec. 31, 2017				$103800 Dr.	110659 Cr.		$899659 Cr.	$789000 Dr.