Refer
to the information in E19–13.
In
E Opsco Corp. provides the following information about its non-pension,
post-retirement benefit plan for the year 2011:
Service
cost ……………………………………………… $ 202,500
Past
service cost amortization …………………………… 6,750
Contribution
to the plan ………………………………….. 47,250
Actual
and expected return on plan assets ………………. 141,750
Benefits
paid ……………………………………………. 90,000
Plan
assets at Jan. 1, 2011 ………………………………. 1,597,500
Post-retirement
benefit obligation at Jan. 1, 2011 ………. 1,822,500
Unrecognized
past service cost balance at Jan. 1, 2011 ….. 45,000
Amortization
of net transition liability ……………………. 20,250
Unrecognized
net transition liability at Jan. 1, 2011………. 180,000
Discount
rate ……………………………………………………….9%
Instructions
(a)
Complete a post-retirement work sheet for 2011.
(b)
Prepare all required journal entries related to the plan made by Opsco in 2011.
(a) See work sheet on next page.
(b) Retirement
Benefit Expense........... 251,775
Accrued Retirement Benefit
Asset/Liability............... 251,775
Accrued
Retirement Benefit
Asset/Liability.................. 47,250
Cash.......................... 47,250
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Opsco Corp.
Post-retirement Benefits Work Sheet—2011
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General Journal Entries
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Memo Record
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Items
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Annual
Post-
retirement
Expense
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Cash
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Accrued
Post-retirement
Liability
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Accrued
Post-retire-
ment Benefit
Obligation
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Plan
Assets
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Unreco-gnized
Transition
Amount
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Unreco-gnized
Past
Service Cost
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Balance, Jan. 1, 2011
(a) Service cost
(b) Interest cost
(c) Actual return
(d) Contributions
(e) Benefits
(f) Amortization:
Transition
Past service cost
Expense entry for 2011
Funding
Balance, Dec. 31, 2011
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202,500 Dr.
164,025 Dr.
141,750 Cr.
20,250 Dr.
6,750 Dr.
251,775 Dr.
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47,250 Cr.
00,000 Dr.
47,250 Cr.
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-0-Cr.
00,000 Dr.
251,775 Cr.
47,250 Dr.
204,525 Cr.
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1,822,500 Cr.
202,500 Cr.
164,025 Cr.
90,000 Dr.
000,000 Dr.
2,099,025
Cr.
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1,597,500 Dr.
141,750 Dr.
47,250 Dr.
90,000 Cr.
0
00,000 Dr.
1,696,500
Dr.
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180,000 Dr.
20,250 Cr.
000,0
00 Dr.
159,750 Dr.
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45,000 Dr.
6,750 Cr.
00,000
Dr.
38,250 Dr.
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