The following data relate to a pension plan for Cobain, Inc.

January 1, 2020 General Ledger balances:

Projected Benefit Obligation $90,000 Cr.

Plan Assets $90,000 Dr.

Accumulated OCIPension Gain/Loss $15,000 Cr.

Accumulated OCIPrior Service Cost $24,000 Dr.

Transactions during 2020:

Service cost calculated by actuary $21,000

Contributions into plan by employer $27,000

Prior service cost amortization $ 3,000

Expected return on plan assets $ 6,000

Actual return on plan assets $ 9,000

The actuary informs the company that an 8% discount rate is appropriate for the company this year. The companys policy is to amortize any Accumulated OCI on pension gains or losses over 15 years on a straight-line basis.

Required: Note: You MIGHT want to do part d) first, as it may help you with parts a, b, and c.

a. Prepare in proper form all general journal entries related to the defined pension plan for 2020 Round your answers to the nearest whole dollar. SHOW all calculations AS PART OF explanations. So each calculation must be shown below the entries, not just entered into cells as formulas.

b. Assuming pension expenses are not capitalized as part of inventory or other assets, indicate the effect on the income statement for the year ended December 31, 2020. Round your answers to the nearest whole dollar.

c. Show the changes in each balance sheet account between January 1 and December 31, 2020 and make it clear what amounts and line items will be reported on the companys December 31, 2020 balance sheet.

d. Create a worksheet to summarize the pension data at the end of 2020. Round your answers to the nearest whole dollar.

e. If instead of using straight-line amortization over 15 years, the company amortized the appropriate amount of AOCI-Pension Gain or Loss using the corridor approach with average remaining service lives of employees of 10 years, prepare the calculation in a clear and complete form.