Problem:
The following information is related to the Hedge Co. post-retirement ("pension") benefits plan for 2011:
Service Cost $168,000
Discount Rate 10%
EPBO, January 1, 2011 820,000
APBO, January 1, 2011 640,000
Actual return on plan assets in 2011 22,400
Expected return on plan assets in 2011 29,000
Contributions (funding) 224,000
Instructions:
(a) Compute the amount of post-retirement expense for 2011. (Show computations.)
(b) Prepare the journal entry to record post-retirement expense and Hedge's contributions for 2011.