Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello

تمرين 12

Pension Plans
At the end of the current year, Eastern Electric received the following information from its actuarial firm:

The pension plan is fully funded. Eastern Electric has funded only 40% of the nonpension postretirement benefits this year.
a. Prepare the journal entry to summarize pension expense for the entire year.
b. Prepare the journal entry to summarize the nonpension postretirement benefits expense for the entire year.
c. If the company becomes illiquid in future years, what prospects, if any, do today's employees have of receiving the pension benefits that they have earned to date?
d. Does the company have an ethical responsibility to fully fund its nonpension postretirement benefits?