Postretirement Benefits Postretirement benefits are Pensions Health Insurance

Postretirement benefits postretirement benefits are

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Postretirement Benefits: Postretirement benefits are Pensions, Health Insurance, and life Insurance. Postretirement benefits Plans can make a big impact on companies finances short-term and long-term. Peyton approved provides Health insurance to their retired employees in addition to its pension plan. The company sets the money for its employee pension program aside and it is recorded in the company’s accrued pension liability account. For Peyton approved current 60 employees the balance of the accrued pension liability account totals $107,041.70. This amount will be debited to pension expense and credited to the accrued pension liability accounts. For the retired employee’s health insurance the company debits the retired employee health insurance and credits the accrued employee health insurance in the current amount of $43,718.91. Due to the liability service and 2
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Milestone 2 Management Brief interest costs are accrued. Service costs are an additional liability because another year has lapsed and the employees receive another year credit for their service. Interest cost are additional liabilities created as well because the employees are another year to their postretirement benefits paying out. References: Hayes, A. (2019, March 28). Capital Lease Definition. Retrieved from Kagan, J. (2019, March 12). Other Post-Retirement Benefits. Retrieved from Whalen, J.M., Jones, J.P., & Pagach, D.P. (2017). Intermediate accounting: Reporting and analysis . Boston, MA.: Cengage Learning 3
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