Answer to Question #180298 in Accounting for Milan

Question

Debit Pension Benefit Asset

Credit Cash

• What does this journal entry mean?

Debit Pension Benefit Asset

Credit Other Comprehensive Income

• What does this journal entry mean?

Debit Other Comprehensive Income

Credit Pension Benefit Asset

• What does this journal entry mean?

Debit Compensation Expense

Credit Pension Benefit Asset

• What does this journal entry mean?

Debit Net Periodic Pension Cost

Credit Pension Benefit Asset

• What does this journal entry mean?

Debit Pension Benefit Asset

Credit Net Periodic Pension Cost

• What does this journal entry mean?

Debit Net Periodic Pension Cost

Credit Other Comprehensive Income

• What does this journal entry mean?

Debit Other Comprehensive Income

Credit Net Periodic Pension Cost

• What does this journal entry mean?

Answer 1

Debit Pension Benefit Asset

Credit Cash

What does this journal entry mean? To record company contribution to the pension hence you credit cash as is an outflow and increment to the pension fund as asset hence debited.

Debit Pension Benefit Asset

Credit Other Comprehensive Income

What does this journal entry mean? Debit pension benefit asset since it amounts to future income or asset credit other comprehensive since the figure goes to the income statement as credit either as gain or loss on the transaction.

Debit Other Comprehensive Income

Credit Pension Benefit Asset

What does this journal entry mean? To adjust pension asset to fair value, this journal entry occurs at the settlement where you debit revenues, expenses, gains, and losses incurred over the period and credit what you gained from the fund from face value.

Debit Compensation Expense

Credit Pension Benefit Asset

What does this journal entry mean? To record pension expense which debited and reduction of assert due to the expense credited.

Debit Net Periodic Pension Cost

Credit Pension Benefit Asset

What does this journal entry mean? net periodic benefit cost (NPBC) is the total cost expensed for a firm's pension or postretirement plans. The service cost component of the NPBC is the portion of the expected postretirement benefit obligation attributed to services rendered by eligible employees during the year. It is debited because it’s an expense and Pension benefit asset credited due to the reduction.

Debit Pension Benefit Asset

Credit Net Periodic Pension Cost

What does this journal entry mean?  It shows amortization of pension cost of prior period, and thus shows increment to the pension benefit asset.

Debit Net Periodic Pension Cost

Credit Other Comprehensive Income

What does this journal entry mean? To record adjustments to Other Comprehensive Income net of related pension cost and the change in the non-current liability during the current year

Debit Other Comprehensive Income

Credit Net Periodic Pension Cost

What does this journal entry mean? To record adjustments to Other Comprehensive Income net of related pension cost and the change in the non-current liability during the current year