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:

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.

(a) See work sheet on next page.

(b) Retirement Benefit Expense........... 251,775

Accrued Retirement Benefit

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

    Accrued Retirement Benefit

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

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

Opsco Corp. Post-retirement Benefits Work Sheet—2011

General Journal Entries

Memo Record

Items

Annual Post- retirement Expense

Cash

Accrued Post-retirement Liability

Accrued Post-retire- ment Benefit Obligation

Plan Assets

Unreco-gnized Transition Amount

Unreco-gnized Past Service Cost

Balance, Jan. 1, 2011 (a) Service cost (b) Interest cost (c) Actual return (d)   Contributions (e) Benefits (f)   Amortization:       Transition      Past service cost Expense entry for 2011 Funding Balance, Dec. 31, 2011

202,500 Dr.  164,025 Dr.  141,750 Cr.   20,250 Dr.   6,750 Dr. 251,775 Dr.

47,250 Cr. 00,000 Dr. 47,250 Cr.

-0-Cr. 00,000 Dr. 251,775 Cr.   47,250 Dr.   204,525 Cr.

1,822,500 Cr.  202,500 Cr.  164,025 Cr.  90,000 Dr. 000,000 Dr. 2,099,025 Cr.

1,597,500 Dr.  141,750 Dr.  47,250 Dr.  90,000 Cr. 0 00,000 Dr. 1,696,500 Dr.

180,000 Dr.  20,250 Cr. 000,0 00 Dr. 159,750 Dr.

45,000 Dr.  6,750 Cr. 00,000  Dr. 38,250 Dr.