The Toys R Us, Inc., is a leader in the retail toy industry. The following is an excerpt from a disclosure note in the company's annual report for the fiscal year ended January 31, 2009:
Real World Financials
Required:
1.What amount did Toys R Us report in its balance sheet related to the pension plan at January 31, 2009?
2.When calculating pension expense at January 31, 2009, what amount did Toys R Us include as the amortization of unrecognized net actuarial loss (net loss-AOCI), which was $20 million at the beginning of the year? The average remaining service life of employees was 10 years.
3.The expected return on plan assets was $2 million for the year ending January 31, 2009, and there was no unrecognized prior service cost. What was the pension expense?
4.What were the appropriate journal entries to record Toys R Us's pension expense and to record gains and/or losses related to the pension plan?