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Harrison Forklift's pension expense includes a service cost of $13 million. Harrison began the year with a pension liability of $34 million (underfunded pension plan). ($ in millions) 1. Interest cost, $9; expected return on assets, $7; amortization of net loss, $2. 2. Interest cost, $9; expected return on assets, $7; amortization of net gain, $2. 3. Interest cost, $9; expected return on assets, $7; amortization of net loss, $2; amortization of prior service cost, $3. Required: Prepare the appropriate general journal entries to record Harrison's pension expense in each of the following independent situations regarding the other (non-service cost) components of pension expense. Note: 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 $13 million. Harrison began the year with a pension liability of $34 million (underfunded pension plan). ($ in millions) 1. Interest cost, $9; expected return on assets, $7; amortization of net loss, $2. 2. Interest cost, $9; expected return on assets, $7; amortization of net gain, $2. 3. Interest cost, $9; expected return on assets, $7; amortization of net loss, $2; amortization of prior service cost, $3. Required: Prepare the appropriate general journal entries to record Harrison's pension expense in each of the following independent situations regarding the other (non-service cost) components of pension expense. Note: 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).

Understanding Business
Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Harrison Forklift's pension expense includes a service cost of $13 million. Harrison began the year with a pension liability of $34 million (underfunded pension plan). ($ in millions) 1. Interest cost, $9; expected return on assets, $7; amortization of net loss, $2. 2. Interest cost, $9; expected return on assets, $7; amortization of net gain, $2. 3. Interest cost, $9; expected return on assets, $7; amortization of net loss, $2; amortization of prior service cost, $3. Required: Prepare the appropriate general journal entries to record Harrison's pension expense in each of the following independent situations regarding the other (non-service cost) components of pension expense. Note: 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).
Transcribed Image Text:Harrison Forklift's pension expense includes a service cost of $13 million. Harrison began the year with a pension liability of $34 million (underfunded pension plan). ($ in millions) 1. Interest cost, $9; expected return on assets, $7; amortization of net loss, $2. 2. Interest cost, $9; expected return on assets, $7; amortization of net gain, $2. 3. Interest cost, $9; expected return on assets, $7; amortization of net loss, $2; amortization of prior service cost, $3. Required: Prepare the appropriate general journal entries to record Harrison's pension expense in each of the following independent situations regarding the other (non-service cost) components of pension expense. Note: 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).
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