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Vaughn Foods Inc. sponsors a postretirement medical and dental benefit plan for its employees. The following balances relate to this plan on January 1, 2017. Plan assets $198,100 Expected postretirement benefit obligation 836,000 Accumulated postretirement benefit obligation 198,100 No prior service costs or OCI balances exist. As a result of the plans operation during 2017, the following additional data are provided by the actuary. Service cost is $70,100 Discount rate is 10% Contributions to plan are $61,200 Expected return on plan assets is $10,100 Actual return on plan assets is $14,800 Benefits paid to employees are $43,300 Average remaining service to full eligibility: 20 years Using the preceding data, compute the net periodic postretirement benefit cost for 2017 by preparing a worksheet that shows the journal entry for postretirement expense and the year-end balances in the related postretirement benefit memo accounts. (Assume that contributions and benefits are paid at the end of the year VAUGHN FOODS INC. Postretirement Benefit Worksheet2017 General Journal Entries Memo Record Items Annual Post Retirement Expense Cash OCIGain/ Loss Postretirement Asset/ Liability APBO Plan Assets

Balance Jan 1, 2017

Service Cost

Interest Cost

Actual Return

Unexpected Gain

Contributions

Benefits

Journal Entry for 2017

Accumulated OCI, Dec. 31, 2016

Balance Dec. 31, 2017

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