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Harrison Forklift's pension expense includes a service cost of $14 million. Harrison began the year with a pension liability of $36 million (underfunded pension plan). ($ in millions) 1. Interest cost, $10; expected return on assets, $8; amortization of net loss, $3. 2. Interest cost, $10; expected return on assets, $7; amortization of net gain, $3. 3. Interest cost, $10; expected return on assets, $7; amortization of net loss, $3; amortization of prior service cost, $4. 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). View transaction list Journal entry worksheet < 1 2 3 Prepare the appropriate journal entry to record pension expense in situation 1. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Pension expense >

Harrison Forklift's pension expense includes a service cost of $14 million. Harrison began the year with a pension liability of $36 million (underfunded pension plan). ($ in millions) 1. Interest cost, $10; expected return on assets, $8; amortization of net loss, $3. 2. Interest cost, $10; expected return on assets, $7; amortization of net gain, $3. 3. Interest cost, $10; expected return on assets, $7; amortization of net loss, $3; amortization of prior service cost, $4. 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). View transaction list Journal entry worksheet < 1 2 3 Prepare the appropriate journal entry to record pension expense in situation 1. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Pension expense >

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Harrison Forklift's pension expense includes a service cost of $14 million. Harrison began the year with a pension liability of $36 million (underfunded pension plan). ($ in millions) 1. Interest cost, $10; expected return on assets, $8; amortization of net loss, $3. 2. Interest cost, $10; expected return on assets, $7; amortization of net gain, $3. 3. Interest cost, $10; expected return on assets, $7; amortization of net loss, $3; amortization of prior service cost, $4. 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). View transaction list Journal entry worksheet < 1 2 3 Prepare the appropriate journal entry to record pension expense in situation 1. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Pension expense >
Transcribed Image Text:Harrison Forklift's pension expense includes a service cost of $14 million. Harrison began the year with a pension liability of $36 million (underfunded pension plan). ($ in millions) 1. Interest cost, $10; expected return on assets, $8; amortization of net loss, $3. 2. Interest cost, $10; expected return on assets, $7; amortization of net gain, $3. 3. Interest cost, $10; expected return on assets, $7; amortization of net loss, $3; amortization of prior service cost, $4. 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). View transaction list Journal entry worksheet < 1 2 3 Prepare the appropriate journal entry to record pension expense in situation 1. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Pension expense >
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