Journal entries to record the postretirement benefit expense

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Question: Data pertaining to the postretirement health care benefit plan of Sterling Properties include the following for 2011:


($ in 000s)

Service cost

$124

Accumulated postretirement benefit obligation, January 1

700

Plan assets (fair market value), January 1

50

Prior service cost-AOCI

none

Net gain-AOCI (2011 amortization, $1)

91

Retiree benefits paid (end of year)

87

Contribution to health care benefit fund (end of year)

185

Discount rate

7%

Return on plan assets (actual and expected)

10%

Required:

(1) Determine the postretirement benefit expense for 2011.

(2) Prepare the appropriate journal entries to record the postretirement benefit expense, funding, and retiree benefits for 2011.

Reference no: EM131787879

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