Vander Co. provides medical care and insurance benefits to its retirees. In the current year, Vander agrees to pay $10,000 for medical insurance and contribute an additional 5% of the employees $205,000 gross salaries to a retirement program.

(1) Record the entry for these accrued (but unpaid) benefits on December 31.

(2) Assuming $5,500 of the retirement benefits are not to be paid for five years, how should this amount be reported on the current balance sheet?