On January 1, 2012, Harrington Company has the following defined benefit pension plan balances.   
Projected benefits obligation     $5,600,000
Fair value of plan assets     6,400,000

The interest (settlement) rate applicable to the plan is     9%.    On January 1, 2013, the company amends its pension
agreement so that service costs of    $620,000 are created. Other data related to the pension plan are as follows:   

2012     2013   
Service costs     $180,000 $195,000
Prior service costs 0 97,000 amortization   
Contributions (funding) 255,000 305,000 to the plan
Benefits paid     225,000 300,000
Actual return on plan 320,000 515,000     assets   
Expected rate of return 5%     8%     on assets

Instructions:   
(a) Prepare a pension worksheet for the pension plan for 2012 and 2013.   

HARRINGTON COMPANY   
Pension Worksheet—2012 and 2013   
General Journal Entries     Memo Record   
The 7 general journal entries are:   
“Annual
Pension
Expense”

“Cash”   
“OCI – Prior Service Cost”
“OCI – Gain/Loss”   
“Pension
Asset/
Liability”   
“Projected
Benefit
Obligation”   
“Plan
Assets”

The below items include:
Balance, Jan. 1, 2012   
(a) Service cost   
(b) Interest cost   
(c) Actual return   
(d) Contributions   
(e) Benefits   
Journal entry, 12/31/12   
Accum OCI, 12/31/11   
Balance, Dec. 31, 2012   
(f) Additional PSC   
January 1, 2013   
(g) Service cost   
(h) Interest cost   
(i) Actual return   
(j) Unexpected loss   
(k) Amortization of PSC   
(l) Contributions   
(m) Benefits   
Journal entry, 12/31/13   
Accum OCI, 12/31/12   
Balance, Dec. 31, 2013   

Area for calculations as desired   

(b) For 2013, prepare the journal entry to record pension-related amounts.