On January 1, 2016, Jackson Hole Company decided to provide a healthcare plan for retired employees. In order for benefits to be determined for each employee, the company gives credit to the date of hire for each employee. This is a retroactive benefit. The following information regarding the plan is as follows:
Accumulated postretirement benefit obligation for employees fully
Required:
1) Compute the OPRB expense for 2016 using the average remaining service life to amortize the prior service cost.
2) Prepare all the required journal entries for 2016 if the plan is not funded.
3) Compute the accumulated postretirement benefit obligation.

Question

On January 1, 2016, Jackson Hole Company decided to provide a healthcare plan for retired employees. In order for benefits to be determined for each employee, the company gives credit to the date of hire for each employee. This is a retroactive benefit. The following information regarding the plan is as follows:
Accumulated postretirement benefit obligation for employees fully  
Required:
1) Compute the OPRB expense for 2016 using the average remaining service life to amortize the prior service cost.
2) Prepare all the required journal entries for 2016 if the plan is not funded.
3) Compute the accumulated postretirement benefit obligation.

Quizplus · Accepted Answer

The Answer of On January 1, 2016, Jackson Hole Company decided to provide a healthcare plan for retired employees. In order for benefits to be determined for each employee, the company gives credit to the date of hire for each employee. This is a retroactive benefit. The following information regarding the plan is as follows:
Accumulated postretirement benefit obligation for employees fully  
Required:
1) Compute the OPRB expense for 2016 using the average remaining service life to amortize the prior service cost.
2) Prepare all the required journal entries for 2016 if the plan is not funded.
3) Compute the accumulated postretirement benefit obligation.

On January 1, 2016, Jackson Hole Company Decided to Provide