Exercise $17-27($Algo$)$ Postretirement benefits; components of postretirement benefit expense $[$LO$17-11]$

Data pertaining to the postretirement health care benefit plan of Sterling Properties include the following for $2021$:

$($$ in thousands$)$

Service cost $ $128$

Accumulated postretirement benefit obligation, January $1900$

Plan assets $($fair value$),$ January $180$

Prior service cost$$AOCI none

Net gain$$AOCI $(2021$ amortization, $$2)96$

Retiree benefits paid $($end of year$)84$

Contribution to health care benefit fund $($end of year$)180$

Discount rate, $7\%$

Return on plan assets $($actual and expected$),10\%$

Required:

$1.$ Determine the postretirement benefit expense for $2021.$

$2.$ Prepare the appropriate journal entries to record the $($a$)$ postretirement benefit expense, $($b$)$ funding, and $($c$)$ retiree benefits for $2021.$Complete this question by entering your answers in the tabs below.

Required $2$

Prepare the appropriate journal entries to record the $($a$)$ postretirement benefit expense, $($b$)$ ful

$($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first aci

thousands $($i$.$e$.,200,000$ should be entered as $200).)$

Journal entry worksheet

A

B

C

Record the postretirement benefit expense.

Note: Enter debits before credits.