Hi-Tower Machining Offers Pensions and Postretirement Benefits to Its Employees

Essay

Hi-tower Machining offers pensions and postretirement benefits to its employees.For the fiscal year ended March 31,2X03,Hi-tower Machining's employees accumulated $16 million in additional pension benefits,but Hi-tower Machining did not contribute additional cash into the fund.In addition,Hi-tower Machining paid retirees a total of $2 million in health benefits with an actuarial gain of $1.2 million.
Prepare the journal entries to
1.account for the pension fund.
2.account for the health insurance payment and gain.