Exercise 20-23Pronghorn Co. provides the following information about itspostretirement benefit plan for the year...Exercise...

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Accounting

Exercise 20-23
Pronghorn Co. provides the following information about itspostretirement benefit plan for the year 2017.
Service cost
$89,900
Prior service cost amortization
3,100
Contribution to the plan
51,500
Actual and expected return on plan assets
57,900
Benefits paid
43,400
Plan assets at January 1, 2017
714,600
Accumulated postretirement benefit obligation at January 1,2017
750,400
Accumulated OCI (PSC) at January 1, 2017
102,300
Dr.
Discount rate
9
%

Prepare a worksheet inserting January 1, 2017, balances, showingDecember 31, 2017, balances, and the journal entry recordingpostretirement benefit expense. (Enter all amounts aspositive.)
PRONGHORN 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
$
Dr.Cr.
$
Dr.Cr.
$
Dr.Cr.
$
Dr.Cr.
$
Dr.Cr.
$
Dr.Cr.
Service cost
Dr.Cr.
Dr.Cr.
Dr.Cr.
Dr.Cr.
Dr.Cr.
Dr.Cr.
Interest cost
Dr.Cr.
Dr.Cr.
Dr.Cr.
Dr.Cr.
Dr.Cr.
Dr.Cr.
Actual return
Dr.Cr.
Dr.Cr.
Dr.Cr.
Dr.Cr.
Dr.Cr.
Dr.Cr.
Contributions
Dr.Cr.
Dr.Cr.
Dr.Cr.
Dr.Cr.
Dr.Cr.
Dr.Cr.
Benefits
Dr.Cr.
Dr.Cr.
Dr.Cr.
Dr.Cr.
Dr.Cr.
Dr.Cr.
Amortization of PSC
Dr.Cr.
Dr.Cr.
Dr.Cr.
Dr.Cr.
Dr.Cr.
Dr.Cr.
Journal entry for 2017
$
Dr.Cr.
$
Dr.Cr.
Dr.Cr.
Dr.Cr.
Dr.Cr.
Dr.Cr.
Accumulated OCI, Dec. 31, 2016
Dr.Cr.
Dr.Cr.
Dr.Cr.
Dr.Cr.
Balance, Dec. 31, 2017
$
Dr.Cr.
$
Dr.Cr.
$
Dr.Cr.
$
Dr.Cr.

Answer & Explanation Solved by verified expert

4.1 Ratings (567 Votes)

Pronghorn 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

35800

Cr.

750400

Cr.

714600

Dr.

Service cost

89900

Dr.

89900

Cr.

Interest cost

67536

Dr.

67536

Cr.

Actual return

57900

Cr.

57900

Dr.

Contributions

51500

Dr.

Benefits

43400

Dr.

43400

Cr.

Amortization of PSC

3100

Dr.

3100

Cr.

Journal entry for 2017

102636

Dr.

51500

Cr.

3100

Cr.

48036

Cr.

Accumulated OCI, Dec. 31, 2016

102300

Dr.

Balance, Dec. 31, 2017

99200

Dr.

83836

Cr.

864436

Cr.

780600

Dr.

Service Cost	89900
Interest on Accumu lated Posstretirement Benfit Obligation (9%* $750400)	67536
Expected Return on Plan Asset	-57900
Amortisation of Prior Service Cost	3100
Post Retirement Expense	102636

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Transcribed Image Text

In: AccountingExercise 20-23Pronghorn Co. provides the following information about itspostretirement benefit plan for the year...Exercise 20-23Pronghorn Co. provides the following information about itspostretirement benefit plan for the year 2017.Service cost$89,900Prior service cost amortization3,100Contribution to the plan51,500Actual and expected return on plan assets57,900Benefits paid43,400Plan assets at January 1, 2017714,600Accumulated postretirement benefit obligation at January 1,2017750,400Accumulated OCI (PSC) at January 1, 2017102,300Dr.Discount rate9%Prepare a worksheet inserting January 1, 2017, balances, showingDecember 31, 2017, balances, and the journal entry recordingpostretirement benefit expense. (Enter all amounts aspositive.)PRONGHORN CO.Postretirement Benefit Worksheet—2017General Journal EntriesMemo RecordItemsAnnual PostretirementExpenseCashOCI—PriorService CostPostretirement Asset/LiabilityAPBOPlan AssetsBalance, Jan. 1, 2017$Dr.Cr.$Dr.Cr.$Dr.Cr.$Dr.Cr.$Dr.Cr.$Dr.Cr.Service costDr.Cr.Dr.Cr.Dr.Cr.Dr.Cr.Dr.Cr.Dr.Cr.Interest costDr.Cr.Dr.Cr.Dr.Cr.Dr.Cr.Dr.Cr.Dr.Cr.Actual returnDr.Cr.Dr.Cr.Dr.Cr.Dr.Cr.Dr.Cr.Dr.Cr.ContributionsDr.Cr.Dr.Cr.Dr.Cr.Dr.Cr.Dr.Cr.Dr.Cr.BenefitsDr.Cr.Dr.Cr.Dr.Cr.Dr.Cr.Dr.Cr.Dr.Cr.Amortization of PSCDr.Cr.Dr.Cr.Dr.Cr.Dr.Cr.Dr.Cr.Dr.Cr.Journal entry for 2017$Dr.Cr.$Dr.Cr.Dr.Cr.Dr.Cr.Dr.Cr.Dr.Cr.Accumulated OCI, Dec. 31, 2016Dr.Cr.Dr.Cr.Dr.Cr.Dr.Cr.Balance, Dec. 31, 2017$Dr.Cr.$Dr.Cr.$Dr.Cr.$Dr.Cr.

Service cost	$89,900
Prior service cost amortization	3,100
Contribution to the plan	51,500
Actual and expected return on plan assets	57,900
Benefits paid	43,400
Plan assets at January 1, 2017	714,600
Accumulated postretirement benefit obligation at January 1,2017	750,400
Accumulated OCI (PSC) at January 1, 2017	102,300	Dr.
Discount rate	9	%

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