1. Alpha Corp sponsors a defined benefit pension plan for its employees.

On January 2, 2012 the following balances relate to this plan:

Plan Assets $480,000

Projected benefit obligations $600,000

Accumulated OCI From Prior Service Cost $100,000

As a result of the operation of the plan during 2012, the following data are provided by the actuary.

Service Cost 125,000

Settlement rate 10%

Actual Return on plan assets in 2012 55,000

Amortization of prior service cost 19,000

Contributions 2012 99,000

Benefits paid to retirees in 2012 85,000

Required:

1. Prepare a pension worksheet for 2012
2. Prepare the journal entry to record pension activity
3. Prepare proforma financial statements showing how pension balances and activity would be expressed.