Brimley Corp. issued 5,000 common shares, no par, and 800 preferred shares

Questions: 1) Brimley Corp. issued 5,000 common shares, no par, and 800 preferred shares. At the time of issue the common shares were selling at $30 per share and the preferred at $25. Total cash received was $162,000. Required: 1. Prepare the journal entry to record the issuance of the shares. (show work) 2) Tom began working for Zenon Corporation at age 40 and immediately qualified for the company pension plan. Tom retired at the age of 65, after 25 years of service. The pension provided Tom with a $35,000 annual pension, to be paid at year-end, for 15 years. Assume a constant interest rate of 8% during Tom’s 25 working years and 7% since Tom’s retirement, per actuarial estimates. Zenon Corporation funds their pension using a constant amount at the end of each year during the employment period. Required: I. II. III. IV. What type of pension plan does Zenon Corporation maintain for their employees? (2 marks) To fund Tom’s pension, how much should Zenon Corporation have in their pension fund at the beginning of Tom’s first year of retirement? (6 marks) (show work) How much should Zenon pay to the funding trustee each year-end during Tom’s 25 year employment period to fully fund Tom’s pension obligation? (6 marks) (show work) Given the data provided, is it possible to calculate the pension expense for all retired employees at Zenon Corporation for the first year of Tom’s retirement? If yes, calculate the pension expense amount. If no, explain why it is not possible. (6 marks) (show work) 3) The following data pertains to a defined benefit (DB) pension plan: defined benefit obligation, December 31, 2015 25,000 long-term interest rate on corporate bonds 10% past service cost, December 31, 2016, benefits and liability reduced (1,200) actuarial revaluation, December 31, 2016, change in mortality assumptions, increased liability 600 actual return on plan assets - 2016 2,100 fair value of plan assets, December 31, 2015 16,000 funding payment at December 31, 2016 4,000 benefits paid to retirees - 2016 2,000 current service cost - 2016 1,900 Required: I. II. III. Calculate the net defined benefit pension asset/liability at December 31, 2015. (6 marks) (show work) For December 31, 2016, calculate the defined benefit obligation, fair value of plan assets and the net defined benefit pension asset or liability. (8 marks) (show work) Calculate the three pension accounting elements and journal entries for service cost, net interest and revaluations for 2016. (6 marks) (show work)