On January 1, 2020, Xiamen Company made amendments to its defined benefit pension plan that resulted in 75,000 yuan of past service cost. The plan has 5,080 active employees with an average expected remaining working life of 12 years. There currently are no retirees under the plan. Assume that Xiamen Company is a foreign company using IFRS and is owned by a company using U.S. GAAP. Thus, IFRS balances must be converted to U.S. GAAP to prepare consolidated financial statements. Ignore income taxes.

Assume that Xiamen Company is a foreign company using IFRS and is owned by a company using U.S. GAAP. Thus, IFRS balances must be converted to U.S. GAAP to prepare consolidated financial statements. Ignore income taxes.

Required:

Prepare journal entries for the past service cost for the years ending December 31, 2020, and December 31, 2021, under (1) IFRS and (2) U.S. GAAP.

Prepare the entry(ies) that the U.S. parent would make on the December 31, 2020, and December 31, 2021, conversion worksheets to convert IFRS balances to U.S. GAAP.

No	Date	General Journal	Debit	Credit
1	01/01/2020	Past service cost expense	75,000
		Defined benefit obligation		75,000
2	01/01/2020	Deferred past service cost (AOCI)	75,000
		Defined benefit obligation		75,000
3	12/31/2020	Past service cost expense	6,250
		Deferred past service cost (AOCI)		6,250
4	12/31/2020	Past service cost expense	6,250
		Defined benefit obligation		6,250

Journal entry worksheet

***There are 6 journal entries for part A and 3 journal entries for part B please put them in journal entry format so it is easy to read**