Question:

From the given information, it is possible to evaluate Boeing's 2008 net journal entry for its pension and OPEB Fund activities (with a small unexplained difference):

Debits Credits

Deferred tax assets, retiree health care accruals

[$2,581 minus $2,970] $389

Pension asset (liability) [($1,648) minus $3,026] $4,674

Postretirement liability adjustment, net of tax of ($4,883) $8,565

Net periodic benefit cost, pensions $562

Net periodic benefit cost, OPEB $570

Pension benefits paid by Boeing [$3,056 minus $2,991] $65

OPEB benefits paid by Boeing [$630 minus $16] $614

Cash, to Pension fund $531

Cash, to OPEB fund $19

Pension plan assets, net [$5,924 minus $16] $5,908

Accounts payable, pensions [$51 minus $53] $2

Accounts payable, OPEB [$430 minus $458] $28

Accrued pension plan liability [$1,155 minus $8,383] $7,228

Accrued retiree health care [$7,007 minus $7,322] $315

Totals $14,760 $14,710

Change due to 15 months in 2008: ($86)

Revised Totals $14,674 $14,710

Unexplained difference $36

1. Describe the above journal entry, including the cash flow implications for financial statement analysis and valuation