Question

For 2017, Sampsell Inc. computed its annual postretirement expense as \(240,900. Sampsell’s contribution to the plan during 2017 was \)180,000. Prepare Sampsell’s 2017 entry to record postretirement expense, assuming Sampsell has no OCI amounts.

Short answer

Journal entryrefers to recording the organization’s financial transactionsin a summarized manner. Each transaction is recorded according to the accounting concepts.

Step-by-step solution

Given amounts:

Particulars	Amount
Postretirement expense	$240,900
Contribution	$180,000

Journal entry of Sampsell for 2017

Sampsell Inc
Journal Entry
Date	Particulars	Debit	Credit
2017	Postretirement Expense	$240,900
	Cash		$180,000
	Postretirement Asset/Liability		$60,900
	(To record the postretirement expense)