The accountant for Camberwell Corp has developed the following information regarding the company's defined benefit pension plan for 2012:

Service cost---------------------------------------------------------------------------------------------------- $600,000

Actual return on plan assets------------------------------------------------------------------------------ 315,000

Contributions------------------------------------------------------------------------------------------------- 1,080,000

Amortization of unrecognized past service costs------------------------------------------------- 126,000

Benefits paid to retirees-------------------------------------------------------------------------------------- 72,000

Interest rate on ABO---------------------------------------------------------------------------------------------- 10%

Expected rate of return on plan assets---------------------------------------------------------------------- 8%

Required:

(a)Using the above information, complete the pension work sheet below for 2012.Indicate credit entries by parentheses, e.g. (72,000).

(b)Prepare the journal entries to reflect the accounting for the company's pension plan for the year ending December 31, 2012.

Camberwell Corp

Pension Work Sheet2012

General Journal Entries

Memo Entries

Unrecognized Annual Pension Expense

Cash

Accrued Pension Asset/Liab

Accrued Benefit Obligation

Plan Assets

Unrecognized Past Service Cost

Net (Gain) or Loss

Bal., Dec. 31, 2011

(450,000)

(4,500,000)

3,300,000

750,000

Service cost

Interest cost

Expected return

Amortization of PSC

Contributions

Benefits paid

Unrecognized gain/loss

Journal entry for 2012

Bal., Dec. 31, 2012