Harrison Forklift’s pension expense includes a service cost of $10 million. Harrison began the year with a pension liability of $28 million (underfunded pension plan). Required: Prepare the appropriate general journal entries to record Harrison’s pension expense in each of the following independent situations regarding the other components of pension expense ($ in millions): 1. Interest cost, $6; expected return on assets, $4; amortization of net loss, $2. 2. Interest cost, $6; expected return on assets, $4; amortization of net gain, $2. 3. Interest cost, $6; expected return on assets, $4; amortization of net loss, $2; amortization of prior service cost, $3 million.
Harrison Forklift’s pension expense includes a service cost of $10 million. Harrison began the year with a pension
liability of $28 million (underfunded pension plan).
Required:
Prepare the appropriate general
situations regarding the other components of pension expense ($ in millions):
1. Interest cost, $6; expected return on assets, $4; amortization of net loss, $2.
2. Interest cost, $6; expected return on assets, $4; amortization of net gain, $2.
3. Interest cost, $6; expected return on assets, $4; amortization of net loss, $2; amortization of prior service cost,
$3 million.
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