Data pertaining to the postretirement health care benefit plan of sterling properties include the following for 2018: ($ in 000s) service cost $ 124 accumulated postretirement benefit obligation, january 1 700 plan assets (fair value), january 1 50 prior service cost–aoci none net gain–aoci (2018 amortization, $1) 91 retiree benefits paid (end of year) 87 contribution to health care benefit fund (end of year) 185 discount rate, 7% return on plan assets (actual and expected), 10% required: 1. determine the postretirement benefit expense for 2018. 2. prepare the appropriate journal entries to record the postretirement benefit expense, funding, and retiree benefits for 2018.

On january 1, 2018, gless textiles issued $12 million of 9%, 10-year convertible bonds at 101. the bonds pay interest on june 30 and december 31. each $1,000 bond is convertible into 40 shares of gless’s no par common stock. bonds that are similar in all respects, except that they are nonconvertible, currently are selling at 99 (that is, 99% of face amount). century services purchased 10% of the issue as an investment. on january 1, 2018, gless textiles issued $12 million of 9%, 10-year convertible bonds at 101. the bonds pay interest on june 30 and december 31. each $1,000 bond is convertible into 40 shares of gless’s no par common stock. bonds that are similar in all respects, except that they are nonconvertible, currently are selling at 99 (that is, 99% of face amount). century services purchased 10% of the issue as an investment. 3. on july 1, 2023, when gless’s common stock had a market price of $33 per share, century converted the bonds it held. prepare the journal entries by both gless and century for the conversion of the bonds (book value method).