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P20-1

| (2-Year Worksheet)On January 1, 2012, Harrington Company has the following defined benefit pension plan balances.   | Projected benefit obligation | $4,500,000 |

  | Fair value of plan assets | 4,200,000 |

The interest (settlement) rate applicable to the plan is 10%. On January 1, 2013, the company amends its pension agreement so that prior service costs of $500,000 are created. Other data related to the pension plan are as follows.   |   | -------------------------------------------------

2012 | -------------------------------------------------

2013 |

  | Service costs | $150,000 |   | $180,000 |   |

  | Prior service costs amortization | -0-      |   |     90,000 |   |

  | Contributions (funding) to the plan |   240,000 |   |   285,000 |   |

  | Benefits paid |   200,000 |   |   280,000 |   |

  | Actual return on plan assets |   252,000 |   |   260,000 |   |

  | Expected rate of return on assets | 6%     |   | 8%     |   |

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Prepare a pension worksheet for the pension plan for 2012 and 2013. (If answer is zero please enter 0, do not leave any fields blank.) Harrington Company

Pension Worksheet-2012 and 2013 |

Items | -------------------------------------------------

General Journal Entries | Memo Record Entries |

| Annual

Pension Expense | Cash | OCI - Prior Service Cost | OCI - Gain/Loss | Pension Asset/Liability | Projected Benefit Obligation | Plan Assets |

Balance, Jan. 1, 2012 |   |   |   |   | 300,000 Cr.  | 4,500,000 Cr.  | 4,200,000 Dr.  |

Service cost | 150,000 Dr.  |   |   |   |   | 150,000 Cr.  |   |

Interest cost | 450,000 Dr.  |   |   |   |   | 450,000 Cr.  |   |

Actual return | 252,000 Cr.  |   |   |   |   |   | 252,000 Dr.  |

Contributions |   | 240,000 Cr.  |   |   |   |   | 240,000 Dr.  |

Benefits |   |   |    |   |   | 200,000 Dr.  | 200,000 Cr.  |

Journal entry for 2012 | 348,000 Dr.  | 240,000 Cr. ...