Answer to Question #180557 in Accounting for Milan

Question

Debit Pension Benefit Asset

Credit Net Periodic Pension Cost

• What does this journal entry mean?

Debit Pension Benefit Asset

Credit Other Comprehensive Income

• What does this journal entry mean?

Answer 1

Debit Pension Benefit Asset

Credit Net Periodic Pension Cost

• This journal entry means that Periodic Benefit Asset increases by the debited amount whereas the Credit Net Periodic Pension Cost decreases by the same amount.

Debit Pension Benefit Asset

Credit Other Comprehensive Income

• This journal entry means that Pension Benefit Asset increases by the debited amount while other comprehensive income increases by the same amount.