Question:
From the given information, it is possible to evaluate Boeing's 2008 net journal entry for its pension and OPEB Fund activities (with a small unexplained difference):
Debits Credits
Deferred tax assets, retiree health care accruals
[$2,581 minus $2,970] $389
Pension asset (liability) [($1,648) minus $3,026] $4,674
Postretirement liability adjustment, net of tax of ($4,883) $8,565
Net periodic benefit cost, pensions $562
Net periodic benefit cost, OPEB $570
Pension benefits paid by Boeing [$3,056 minus $2,991] $65
OPEB benefits paid by Boeing [$630 minus $16] $614
Cash, to Pension fund $531
Cash, to OPEB fund $19
Pension plan assets, net [$5,924 minus $16] $5,908
Accounts payable, pensions [$51 minus $53] $2
Accounts payable, OPEB [$430 minus $458] $28
Accrued pension plan liability [$1,155 minus $8,383] $7,228
Accrued retiree health care [$7,007 minus $7,322] $315
Totals $14,760 $14,710
Change due to 15 months in 2008: ($86)
Revised Totals $14,674 $14,710
Unexplained difference $36
1. Describe the above journal entry, including the cash flow implications for financial statement analysis and valuation