P20-2 Allison Co. has the following postretirement benefit plan balances on January 1, 2012.

"P20-2 Allison Co. has the following postretirement benefit plan balances on January 1, 2012. 
Accumulated Postreitrement benefit obligation $2,535,000 
Fair value of plan assets 2,535,000 

The interest (settlement) rate applicable to the plan is 8% On January 1, 2013, the company amends the plan 
so that prior service costs of $185,000 were created. Other data related to the pension plan are as follows: 

2012 2013
Service costs: $87,000 $80,000 
Prior service costs amortization 0 13,000 
Contributions (funding) to the plan 47,000 38,000 
Benefits paid 41,000 43,000 
Actual return on plan assets 200,000 155,000 
Expected rate of return on assets 9% 7% 

Instructions: 
(a) Prepare a worksheet for the postreitrement plan for 2012 & 2013. 

Allison Co. 
Pension Worksheet—2012 and 2013 
General Journal Entries Memo Record 
Items:

"Annual 
Expense"
DR/CR 
Cash
DR/CR
OCI - Prior Service Cost 
DR/CR 
"Pension
Asset/
Liability" 
DR/CR 
Accum Projected Benefit Obligation
DR/CR
OCI - Gain/Loss 
DR/CR 
"Plan 
Assets" 
DR/CR

Items:

Balance, Jan. 1, 2012 
Service cost 
Interest cost 
Actual return 
Unexpected Loss 
Contributions 
Benefits 
Journal entry, 12/31/12 
Accum OCI, 12/31/11 
Balance, Dec. 31, 2012 
Additional PSC 1/1/2013 
Balance, Jan 1, 2013 
Service cost 
Interest cost 
Actual return 
Unexpected loss 
Amortization of PSC 
Contributions 
Benefits 
Journal entry, 12/31/13 
Accum OCI, 12/31/12 
Balance, Dec. 31, 2013 

Area for calculations as desired 
Area for calculations as desired 
Area for calculations as desired 
Prepare any journal entries related to the postretirement plan as of December 31, 2013.