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Harrison Forklift's pension expense includes a service cost of $28 million. Harrison began the year with a pension liability of $48 million (underfunded pension plan). ($ 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. 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 answer in millions (i.e., 10,000,000 should be entered as 10).

Harrison Forklift's pension expense includes a service cost of $28 million. Harrison began the year with a pension liability of $48 million (underfunded pension plan). ($ 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. 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 answer in millions (i.e., 10,000,000 should be entered as 10).

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 $28 million. Harrison began the year with a pension liability of $48 million (underfunded pension plan). ($ 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. 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 1 General Journal Debit Credit Record entry Clear entry View general journal
Transcribed Image Text:Harrison Forklift's pension expense includes a service cost of $28 million. Harrison began the year with a pension liability of $48 million (underfunded pension plan). ($ 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. 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 1 General Journal Debit Credit Record entry Clear entry View general journal
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