Answer Happy

Vernhey Corporation, which follows ASPE, provides the following
information about its defined benefit pension plan for the year
2020:
Current service cost
$ 144,000
Contribution to the plan
182,600
Past service cost, effective December
31, 2020
60,000
Actual return on plan assets
160,000
Benefits paid
95,000
Net defined benefit liability at
January 1, 2020
20,000
Plan assets at January 1, 2020
1,780,000
Defined benefit obligation at January
1, 2020
1,800,000
Interest/discount rate on the DBO and
plan assets
9%
Instructions
VERHEY LTD.
Pension Work Sheet
for the year ended December 31, 2020
General Journal Entry
Memo Record
Annual Pension Expense
Cash
Net Defined Benefit Liab./ Asset
Defined Benefit Obligation
Plan Assets
Balance Jan. 1, 2020
(20,000)
(1,800,000)
1,780,000
Current service cost
Past service cost
Net interest /finance cost
Benefits paid
Contribution
Expense entry
Contribution entry 2020
Balance Dec.31, 2020
Vernhey Corporation, which follows ASPE, provides the following information about its defined benefit pension plan for the year 2020:11 Current service costa $ 144,000.00 Contribution to the plane 182,60008 Past service cost, effective December 31, 20200 60,000 Actual return on plan assets a 160,0000 Benefits paida 95,000 Net defined benefit liability at January 1, 20200 20,000 Plan assets at January 1, 2020 1,780,00008 Defined benefit obligation at January 1, 20200 1,800,000 Interest/discount rate on the DBO and plan assets a 9%8 Instructions a) → Prepare a pension worksheet: -insert the January 1, 2020 balances and show the December 31, 2020 balances. Indicate credit entries by parentheses, e.g. (25,000). | b) - Prepare all journal entries. c) → What is the amount of the plan's surplus/deficit at December 31, 2020?|| VERHEY LTD. Pension Work Sheet for the year ended December 31, 2020 General Journal Entrya Memo Recorda Annual Pension Expenses Cash Net Defined Benefit Liab./ Asseto Defined Benefit Obligations Plan Assets (20,000) (1,800,000)1,780,000 Balance Jan. 1, 20200 Current service costa Past service costa Net interest /finance costa . 8 Benefits paida Contribution Expense entry Contribution entry 2020 Balance Dec.31, 20200 8 . 18 FE