10.00 points Harrison Forklift\'s pension expense includes a service cost of $16

Question

10.00 points Harrison Forklift's pension expense includes a service cost of $16 million. Harrison began the year with a pension liability of $40 milion (underfunded pension plan). 1. Interest cost, $12, expected return on assets, $10; amortization of net loss, $3 2. Interest cost, $12; expected retum 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 (S in millions): (If no entry is required for a transactionlevent, select "No journal entry required" in the first account field. Enter your answers in millions .e, 10,000,000 should be entered as 10 View transaction list 1 Prepare the appropriate journal entry to record pension expense in situation 1 above. uation 1 Prepare the appropriate journal entry to record pension expense in situation 2 above. 2 Prepare the appropriate journal entry to record pension expense in situation 3 above. 3 Note : -journal entry has been entered esc 4

Explanation / Answer

9. 1. Dr. Pension expense $21 million (16+12-10+3)

         Cr. Pension liability $ 21 million

9.2   Dr. Pension expense $16 million (16+12-9-3)

         Cr. Pension liability $ 16 million

9.3    Dr. Pension expense $26 million (16+12-9+3+4)

         Cr. Pension liability $ 22 million

         Cr. Other comprehensive income $ 4 million

10. $235 million (220+(220*.05)-9+13)

11. $14.55 million ((171*1.05)-160-5

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