Harrison Forklift's pension expense includes a service cost of $18 million. Harrison began the year with...

Harrison Forklift's pension expense includes a service cost of $18 million. Harrison began the year with a pension liability of $44 million (underfunded pension plan).

Interest cost, $6; expected return on assets, $12; amortization of net loss, $4.

Interest cost, $14; expected return on assets, $10; amortization of net gain, $4.

Interest cost, $14; expected return on assets, $10; amortization of net loss, $4; amortization of prior service cost, $5 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 ($ in millions): (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).)

Expert Solution

Requirement 1
                                                                     ($in million)
                                                                  Debit              credit
Pension expense(total)                             16
Plan assets(expected return on assets) 12
    PBO( $18 service cost + $6 interest cost)                24
     Net loss - AOCI(current amortization ) 4

Requirement 2
Pension expense(total)                               18
Plan assets(expected return on assets) 10
Net gain - AOCI(current amortization) 4
    PBO( $18 service cost + $14 interest cost)              32

Requirement 3
Pension expense(total)                               31
Plan assets(expected return on assets) 10
    PBO( $18 service cost + $14 interest cost)              32
      Net loss - AOCI(current amortization ) 4
      Prior service cost(current amortization) 5

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