Opsco Corp. provides the following information about its non-pension, post-retirement benefit plan for the year 2011:

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

Calculate the post-retirement benefit expense for 2011, and prepare all required journal entries related to the postretirement benefit plan that were made by Opsco in 2011.

Service cost                                     $ 202,500

Interest on accrued post-retirement benefit                   

   obligation (9% X $1,822,500)                     164,025

Expected return on plan assets                    (141,750)

Amortization of unrecognized past service cost        6,750

Amortization of unrecognized transition amount       20,250

Post-retirement benefit expense                   $251,775

    Retirement Benefit Expense........... 251,775

Accrued Retirement Benefit

    Asset/Liability...............          251,775

    Accrued Retirement Benefit

Asset/Liability..................   47,250

    Cash..........................           47,250