(Postretirement Benefit W orksheet—2 Y ears) Elton Co. has the following postretirement 1 answer below »

(Postretirement Benefit W orksheet—2 Y ears) Elton Co. has the following postretirement benefit plan balances on January 1, 2014.

Accumulated postretirement benefit obligation $2,250,000

Fair value of plan assets 2,250,000

The interest (settlement) rate applicable to the plan is 10%. On January 1, 2015, the company amends the plan so that prior service costs of $175,000 are created. Other data related to the plan are:

2014

2015

Service costs

$ 75,000

$ 85,000

Prior service costs amortization

–0–

12,000

Contributions (funding) to the plan

45,000

35,000

Benefits paid

40,000

45,000

Actual return on plan assets

140,000

120,000

Expected rate of return on assets

8%

6%

Instructions

(a) P r epa r e a worksheet for the post r eti r ement plan in 2014.

(b) P r epa r e any journal entries r elated to the post r eti r ement plan that would be needed at December 31,

2014.

(c ) P r epa r e a workshee t fo r 201 5 an d an y journa l entrie s r elate d t o th e post r eti r emen t pla n a s of

Decembe r 31 , 2015.

(d) Indicate the post r eti r ement-benefit– r elated amounts r eported in the 2015 financial statements.

 

Looking for a Similar Assignment? Hire our Top Uk Tutors while you enjoy your free time! All papers are written from scratch and are 100% Original. Try us today! Active Discount Code FREE15