Glesen Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2010 and 2011.

Instructions
(a) Prepare a pension worksheet presenting both years 2010 and 2011 and accompanying computations (2010 and 2011) and amortization of the unrecognized loss (2011) using the corridor approach.
(b) Prepare the journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31 of each year.
(c) At December 31, 2011, prepare a schedule reconciling the funded status of the pension plan with the pension amounts reported in the financialstatements.

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2010 2011 $650,000 410,000 Defined benefit obligation, January 1 Plan assets (fair value), January 1 Pension asset/liability, January 1 Unrecognized past service cost, January 1 Service cost Discount rate Expected rate of return 80,000 Cr 160,000 40,000 10% 10% 59,000 10% 10% Actual return on plan assets Amortization of past service cost Annual contributions Benefits paid retirees Increase in defined benefit obligation due to 36,000 70,000 72,000 31,500 61,000 55,000 81,000 54,000 changes in actuarial assumptions Average service life of all employees Vested benefit obligation at December 31 87,000 20 years 464,000