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Refer to the 2017 General Electric Retiree Health and Life Benefits disclosure appearing in Exhibit 15.9.

Required:

1. Reconstruct the journal entries that GE would have made in 2017 to record the effects of its retiree health and life benefits plans. The curtailment loss of $4 should be treated as a credit to OCI—net actuarial gain in conjunction with the amortization journal entry. To record the $27 acquisition (disposition)/other liability loss, GE would have made the following entry:

2. Show how GE’s health and life benefits plans affected its AOCI account for 2017. Use the T-account format shown for GE’s pension plans in Figure 15.7.

Exhibit 15.9.

Figure 15.7.

Transcribed Image Text:

DR Other expense $15 DR OCI-net actuarial gain 14 CR Retiree benefit plans liability $27 CR OCI-prior service credit