Exercise 20-23 Riverbed Co. provides the following information about its postret

Question

Exercise 20-23 Riverbed Co. provides the following information about its postretirement benefit plan for the year 2017, Service cost Prior service cost amortization Contribution to the plan Actual and expected return on plan assets Benefits paid Plan assets at January 1, 2017 Accumulated postretirement benefit obligation at January 1, 2017 Accumulated OCI (PSC) at January 1, 2017 Discount rate $96,900 2,700 51,100 56,600 42,900 696,400 752,800 106,100 Dr. 896 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.)

Explanation / Answer

RIVERBED CO. Postretirement Benefit Worksheet—2017 General Journal Entries Memo Record Annual Postretirement OCI—Prior Postretirement Plan Items Expense Cash Service Cost Asset/Liability APBO Assets Balance, Jan. 1, 2017 56,400 Cr. 752,800 Cr. 696,400 Dr. Service cost 96,900 Dr. 96,900 Cr. Interest cost *60,224 Dr. 60,224 Cr. Actual return 56,600 Cr. 56,600 Dr. Contributions 51,100 Cr. 51,100 Dr. Benefits 42,900 Dr. 42,900 Cr. Amortization of PSC 2,700 Dr.                 2,700 Cr. Journal entry for 2017 103,224 Dr. 51,100 Cr. 2,700 Cr. 49,424 Cr. Accumulated OCI, Dec. 31, 2016 106,100 Dr.                                           Balance, Dec. 31, 2017 103,400 Dr. 105,824 Cr. 867,024 Cr. 761,200 Dr. *($752,800 X 8%)

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