At December 31, 2015, Johnston and Johnston reported in its balance sheet as part of accumulated other comprehensive income a net loss of $37 million related to its postretirement benefit plan. The actuary for J&J increased her estimate of J&J’s future health care costs at the end of 2016. J&J’s entry to record the effect of this change will include a. a debit to other comprehensive income and a credit to postretirement benefit liability. b. a debit to postretirement benefit liability and a credit to other comprehensive income. c. a debit to pension expense and a credit to postretirement benefit liability. d. a debit to pension expense and a credit to other comprehensive income.
At December 31, 2015, Johnston and Johnston reported in its
comprehensive income a net loss of $37 million related to its postretirement benefit plan. The actuary for J&J
increased her estimate of J&J’s future health care costs at the end of 2016. J&J’s entry to record the effect of
this change will include
a. a debit to other comprehensive income and a credit to postretirement benefit liability.
b. a debit to postretirement benefit liability and a credit to other comprehensive income.
c. a debit to pension expense and a credit to postretirement benefit liability.
d. a debit to pension expense and a credit to other comprehensive income.
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