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

1. Prepare a pension work sheet: insert the January 1, 2020 balances and show the December 31, 2020 balances. Indicate credit entries by parentheses, e.g. (25,000).
2. Prepare all journal entries.
3. What is the amount of the plans surplus/deficit at December 31, 2020?

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