Katie Day Company adopts IAS 19 in accounting for its defined benefit pension plan on January 1, 2010, with the following beginning balances: plan assets $200,000; defined benefit obligation $200,000. Other data relating to 3 years’ operation of the plan are as follows.

Instructions
(a) Prepare a pension worksheet presenting all 3 years’ pension balances and activities.
(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 of each year, prepare a schedule reconciling the funded status of the plan with the pension amounts reported in the financialstatements.

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2010 2011 2012 Annual service cost Discount rate and expected rate of return Actual return on plan assets Annual funding (contributions) Benefits paid Unrecognized past service cost (plan amended, 1/111) Amortization of unrecognized past service cost Change in actuarial assumptions establishes $16,000 $ 19,000 $ 26,000 10% 17,000 21,900 24,000 40,000 48,000 4,000 16,400 21,000 10% 10% 16,000 160,000 54,400 41,600 a December 31, 2012, defined benefit obligation of: 520,000