Harrison Forklift\'s pension expense includes a service cost of $16 million. Har

Question

Harrison Forklift's pension expense includes a service cost of $16 million. Harrison began the year with a pension liability of $40 million (underfunded pension plan).

1. Interest cost, $12; expected return on assets, $10; amortization of net loss, $3.

2.Interest cost, $12; expected return on assets, $9; amortization of net gain, $3.

3. Interest cost, $12; expected return on assets, $9; amortization of net loss, $3; amortization of prior service cost, $4 million.

Required:
Prepare the appropriate general journal entries to record Harrison’s pension expense in each of the following independent situations regarding the other components of pension expense ($ in millions): (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

Harrison Forklift's pension expense includes a service cost of $16 million. Harrison began the year with a pension liability of $40 million (underfunded pension plan). 1. Interest cost, $12, expected return on assets, $10; amortization of net loss, $3. 2. Interest cost, $12, expected return on assets, $9, amortization of net gain, $3 3. Interest cost, $12, expected return on assets, $9, amortization of net loss, $3, amortization of prior service cost, $4 million Required: Prepare the appropriate general journal entries to record Harrison's pension expense in each of the following independent situations. regarding the other components of pension expense ($ in milions): (If no entry is required for a transaction/event, select "No journal entry required in the first account field, Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) View transaction list View journal entry worksheet No Transaction Debit Credit General Journal Pension expense Plan assets PHO Amortization of net loss–OCI Pension expense Plan assets Amortization of net gain–OCI

Explanation / Answer

Situation 1

Accounts Title and Explanation

Debit

Credit

Pension Expense

21

Plan Assets (Expected return on Assets)

10

PBO (Service Cost + Interest Cost)

28

Net Loss (Current Amortization)

3

Situation 2

Accounts Title and Explanation

Debit

Credit

Pension Expense

16

Plan Assets (Expected return on Assets)

10

Net Gain (Current Amortization)

2

PBO (Service Cost + Interest Cost)

28

Situation 3

Accounts Title and Explanation

Debit

Credit

Pension Expense

25

Plan Assets (Expected return on Assets)

10

PBO (Service Cost + Interest Cost)

28

Net Loss (Current Amortization)

3

Prior Service Cost (Current Amortization)

4

Situation 1

Accounts Title and Explanation

Debit

Credit

Pension Expense

21

Plan Assets (Expected return on Assets)

10

PBO (Service Cost + Interest Cost)

28

Net Loss (Current Amortization)

3

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