Vernhey Corporation, Which Follows ASPE, Provides the Following Information About

Vernhey Corporation, which follows ASPE, provides the following information about its defined benefit pension plan for the year 2020: $\begin{array}{ll}\text{ Current service cost } ............................................................................. & \$ 144,000 \\\text{ Contribution to the plan } ........................................................................ & 182,600 \\\text{ Past service cost, effective December 31, 2020 } ............................................ & 60,000 \\\text{ Actual return on plan assets } ....................................................................... & 160,000 \\\text{ Benefits paid } ............................................................................................ & 95,000 \\\text{ Net defined benefit liability at January 1, 2020 }........................................... & 20,000 \\\text{ Plan assets at January 1,2020 } .................................................................... & 1,780,000 \\\text{ Defined benefit obligation at January 1, 2020 } .............................................. & 1,800,000 \\\text{ Interest/discount rate on the DBO and plan assets} ........................................ & 9\% \\ \end{array}$
Instructions
a) 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).
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