ABC Company had the following:

1. The company adopts a pension plan on January 1, 2010. No retroactive benefits were granted to employees.

2.The service cost for each year is 2010 $400,000; 2011 $420,000; 2012 $432,000.

3.The projected benefit obligation at the beginning of each year is 2011 $400,000 and 2012 $840,000.

4.The discount rate is 10%.

5.The expected long-term rate of return on plan assets is 10% which is also equal to the actual rate of return.

6.The Company adopts a policy of funding an amount equal to the pension expense and makes the payment to the funding agency at the end of each year.

7.Plan assets are based on the amounts contributed each year, plus a return of 10% per year, less an assumed payment of $20,000 at the end of each year to retired employees (beginning in 2011).

Question:

Funding is $385,000 for 2010, $400,000 for 2011 and $415,000 for 2012, prepare the journal entry.