At the end of the current year, Eastern Electric received the following informat

Question

At the end of the current year, Eastern Electric received the following information from its actuarial firm:

The pension plan is fully funded. Eastern Electric has funded only 40% of the nonpension postretirement benefits this year.

Record pension expense and nonpension postretirement benefit expenses for the entire year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

1.) (Record the payments to a fully funded pension plan)

2.) (Record the postretirement benefits expense and unfunded liability.)

At the end of the current year, Eastern Electric received the following information from its actuarial firm:

Explanation / Answer

S.No. Particulars Debit Credit 1) Pension expense $2500000 Cash $2500000 2) Postretirement Benefits expense $800000 Cash $320000 Unfunded liability for Postretirement Benefits $460000

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