The accounting staff of Holder Inc. has prepared the following postretirement benefit worksheet. Unfortunately, several entries in
Question:
The accounting staff of Holder Inc. has prepared the following postretirement benefit worksheet. Unfortunately, several entries in the worksheet are not decipherable. The company has asked your assistance in completing the worksheet and completing the accounting tasks related to the pension plan for 2025.
Instructions
a. Determine the missing amounts in the 2025 postretirement worksheet, indicating whether the amounts are debits or credits.
b. Prepare the journal entry to record 2025 postretirement expense for Holder.
c. What discount rate is Holder using in accounting for the interest on its other postretirement benefit plan? Explain.
12 AutoSave Off 2 3 5 = X A fx Items 4 Balance, Jan. 1, 2025 5 Service cost 6 Interest cost 7 Actual/Expected return 8 Contributions 9 Benefits 10 Amortization of PSC 11 Journal entry for 2025 12 Accumulated OCI, Dec. 31, 2024 13 Balance, Dec. 31, 2025 Sheet1 B D E Postretirement Benefit Worksheet-Holder Inc. General Journal Entries Annual Expense (1) (2) (3) C $3,000 (6) Cash $66,000 (7) Other Comprehensive Postretirement Income-PSC Asset/Liability $290,000 (5) (8) 30,000 Dr. $27,000 Dr. (9) $314,900 Cr. F Memo Record APBO $410,000 56,000 36,900 G 5,000 0 Plan Assets $120,000 2,000 (4) 5,000 $497,900 Cr. $183,000 Dr. x
Step by Step Answer:
c The discount settlement rate can be determined by dividing the interest cost by th...View the full answer
Intermediate Accounting
ISBN: 9781119790976
18th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Related Video
A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
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