Unrealistic Assumptions Corp. (UAC) is a fictitious company made up for the purposes of this IFA 2 Final assignment

Unrealistic Assumptions Corp. (UAC) is a fictitious company made up for the purposes of this IFA 2 Final assignment. UAC has a December 31 year end and prepares its financial statements in accordance with IFRS. Assume the following information:

• On January 1, 2021, UAC implemented a defined benefit plan for its only employee, Amanda. Amanda has been working for the company (and hopefully doing a good job ?) for the past 5 years.
• In order to fully recognize Amanda’s contributions to the company, UAC decided that upon initiation of the plan, Amanda’s past 5 years of service would be immediately recognized and pension benefits according to the plan’s specifications would be immediately
• Details of the pension plan are:
  • Defined benefit plan
  • Annual pension benefits on retirement are 3% of the expected salary at retirement for each year of service
  • The current service cost accrues at the end of each year of service
• Amanda’s starting salary was $50,000. Amanda has had an annual raise of $2,000 at the beginning of each year since she began working and UAC estimates this annual increase to continue each year until retirement.
• Expected date of retirement is January 1, 2051.
• Actuaries estimate that Amanda’s life expectancy upon retirement is 25 years.
• UAC contributed $15,000 on March 31, 2021 and $10,000 on November 1, 2021 to the pension assets.
• The pension trustee informed UAC that the fair value of the plan assets as at December 31, 2021 was $30,000.
• Discount rates on mortgages, short-term corporate bonds, and long-term corporate bonds during 2021 were 4%, 8% and 6% respectively.

Required:

1. Provide ALL necessary journal entries for 2021 the company assuming a Dec 31 year end.

• Please specify the DATES of the journal entries

2. Provide a reconciliation of plan assets for the year ended 2021.

3. Provide a reconciliation of the defined benefit obligation for the year ended 2021.