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.