On January 1, 2012, Harrington Company has the following defined benefit pension plan balances.

Projected benefit 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:

Instructions:
(a) Prepare a pension worksheet for the pension plan for 2012 and 2013.
(b) For 2013, prepare the journal entry to record pension-relatedamounts.

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012 2013 180,000 $195,000 Service costs Prior service costs amortization Contributions (funding) to the plan Benefits paid Actual return on plan assets Expected rate of return on assets 255,000 225.000 320,000 50 97,000 305,000 300,000 515,000 8%