Harrison Forklift\'s pension expense includes a service cost of $28 million. Har

Question

Harrison Forklift's pension expense includes a service cost of $28 million. Harrison began the year with a pension liability of $48 million (underfunded pension plan).

Interest cost, $24; expected return on assets, $18; amortization of net loss, $6; amortization of prior service cost, $7 million.

Prepare the appropriate general journal entries to record Harrison's pension expense in each of the above independent situations regarding the other components of pension expense ($ in millions).

1. Interest cost, $9; expected return on assets, $22; amortization of net loss, $6. 2. Interest cost, $24; expected return on assets, $18; amortization of net gain, $6. 3.

Interest cost, $24; expected return on assets, $18; amortization of net loss, $6; amortization of prior service cost, $7 million.

Prepare the appropriate general journal entries to record Harrison's pension expense in each of the above independent situations regarding the other components of pension expense ($ in millions).

Explanation / Answer

1.

2.

3.

Dr. Pension expense A/c (Blnc) $21 Dr. Plan assets A/c (expected return on assets) $22 Cr. PBO (Service cost + Interest Cost) $37 Cr. Net loss - AOCI (current amortization) $6

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